A growing number of US mid-sized businesses are calling on the government to take action against the risk of artificial intelligence being used by larger corporations to dominate smaller rivals, according to a new report.
The AND Digital “Winning the intelligent customer” survey, which polled 250 C-suite and data leaders from enterprise and mid-market companies, found that 67% of US businesses fear AI could be weaponised by enterprise giants to squeeze out smaller competitors. Over three-quarters of respondents said they wanted regulatory support to prevent mid-sized firms from being left behind in an AI-driven market.
The report highlights that AI is increasingly shaping customer engagement, but the benefits are disproportionately accruing to firms with the deepest technology and data investments. Nearly two-thirds of respondents said AI-powered loyalty programmes gave large enterprises an unfair advantage, while almost three-quarters warned that without significant AI investment, they would struggle to compete.
“AI is fundamentally changing the rules of customer engagement, but the gap between what large enterprises and smaller businesses can deliver is widening, not because of a lack of innovation, but due to unequal access to high-quality data, skills and advanced technology,” said Rick Boyce, Chief for Engineering at AND Digital.
Cost and complexity remain major barriers to adoption. More than half of companies cited the expense of AI-powered loyalty programmes, while 50% reported insufficient internal skills to deploy the technology safely. In an effort to keep pace, nearly three-quarters of businesses are prioritising rapid AI investment over addressing underlying data challenges, a strategy experts warn could undermine performance and increase compliance risks.
The survey underscores a growing anxiety that AI could exacerbate market concentration, giving a small number of tech-savvy firms a decisive advantage in winning and retaining customers. “If we want a truly competitive and fair digital economy, we need to support mid-sized firms in overcoming these barriers, whether through investment, education, or regulation,” Boyce added.
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