Your Competitors Are Using AI Now, But Most of Them Are Doing It Wrong

Business owner reviewing AI strategy documents on laptop in bright modern office

Written by

The On Your Side Technologies News Team

August 18, 2026

Here’s a fun statistic to ruin your Tuesday morning coffee: according to recent surveys, over 70% of businesses are now experimenting with AI tools. Here’s the statistic that should actually make you feel better: most of them have no idea what they’re doing.

I’ve spent the last few weeks watching the AI landscape shift in ways that matter for small business owners—not the breathless “AGI is coming!” headlines, but the practical, rubber-meets-road developments that affect whether your operations run smoother or your budget bleeds faster.

The Great AI Tool Consolidation Has Begun

Remember when every week brought a new AI startup promising to revolutionize your [insert business function here]? That party is winding down. We’re seeing major players like Microsoft, Google, and Salesforce absorbing AI capabilities directly into tools you already use. The standalone AI app that does one thing brilliantly? It’s either getting acquired or getting desperate.

What this means for you: Stop hoarding AI subscriptions. Before you sign up for another $29/month miracle tool, check whether your existing software has quietly added AI features you haven’t noticed. Your Microsoft 365 subscription, your CRM, your accounting software—many have rolled out AI capabilities in the last six months. You might be paying for redundancy.

“AI Agents” Are the New Buzzword (But Some Actually Work)

Every vendor is now selling “AI agents”—software that doesn’t just answer questions but supposedly takes actions on your behalf. Book meetings. Send follow-ups. Update your CRM. The promise is seductive: AI that does the tedious work while you focus on strategy.

The reality is more nuanced. I’ve tested several of these systems, and they range from genuinely useful to “this just created more work for me to fix.” The difference usually comes down to how well-defined your processes are. AI agents excel at repetitive tasks with clear rules. They struggle with anything requiring judgment calls or context that lives in your head.

Practical takeaway: Before investing in AI automation, document your actual workflow. Not the idealized version—the real one, including the weird exceptions and the “unless it’s Thursday” rules. If you can’t write it down clearly, an AI agent can’t execute it reliably.

The Hidden Cost Nobody Talks About: AI Literacy Training

Here’s my genuinely relatable observation from client work this month: the biggest AI implementation failures I’m seeing aren’t technical. They’re human. Businesses buy powerful AI tools and then watch their teams either ignore them entirely or use them in ways that create more problems than they solve.

One client purchased an excellent AI-powered customer service tool. Three months later, their support team had trained themselves to automatically override every AI suggestion because “it doesn’t understand our customers.” The AI actually understood their customers fine—but nobody had taught the team how to work alongside it effectively.

The uncomfortable truth: Budget for training. Real training, not a 30-minute webinar. If you’re spending $500/month on AI tools but $0 on helping your team use them well, you’re essentially buying a gym membership and never going.

What I’m Actually Recommending to Clients Right Now

When business owners ask me where to start with AI in 2025, my answer has gotten simpler:

  1. Audit what you have. You’re probably underusing tools you already pay for.
  2. Pick one workflow. Not five. One. The most repetitive, soul-crushing task your team hates.
  3. Document it properly. If you skip this step, everything else fails.
  4. Implement slowly. Run AI alongside humans before you trust it to run solo.
  5. Measure honestly. “It feels faster” isn’t a metric. Time it. Track errors. Compare.

The businesses winning with AI right now aren’t the ones with the most tools or the biggest budgets. They’re the ones who picked their battles wisely and committed to actually learning how to use what they bought.

Your competitors may be using AI, but if they skipped the hard work of implementation, they’re just paying for expensive software that sits unused. That’s not a competitive advantage. That’s a line item.

Need help figuring out where AI actually makes sense for your business? Let’s talk strategy—before you add another subscription to the pile.

Want to talk it through? I keep a few virtual coffee spots open each month — grab one while they’re available → Book a virtual coffee

Photo by Mina Rad on Unsplash

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