Artificial intelligence (AI) is no longer a luxury reserved for large enterprises. On this episode of The Small Business Show, Ed Watal, founder and principal of Intellibus, shares how small businesses can—and must—adapt to AI or risk being left behind.
First, Watal kicks off the conversation by clarifying the terms that often overwhelm small business owners—AI, IT, strategy, and more. At its core, he says, AI is quickly becoming the new face of IT. Through his company Intellibus, which specializes in platform engineering, Watal helps organizations assess their technological readiness with a unique metric: the AI Power Score.
This score, ranging from 0 to 100, is designed to indicate how well-positioned a business is to leverage AI effectively. It comprises three components:
- Stability of your technology platform
- Quality and availability of your data model
- Pivot potential—your ability to adapt quickly to change
“The closer you are to zero, the less ready you are,” Watal warned, noting that most businesses are just beginning to go through the scoring process. He likened the AI Power Score to an S&P index for tech readiness, giving companies a way to benchmark their competitive posture in the AI race.
In addition, Watal encourages small businesses to think seriously about whether AI could disrupt their industry entirely. If the answer is yes, they may need to rethink their business model—not just make incremental improvements. He offered the example of a $30 million company that may not be able to afford a dedicated AI team but can still access powerful tools like ChatGPT to level the playing field.
When it comes to scaling, Watal stresses automating repetitive tasks such as data entry, invoice processing, and even basic customer service. Thanks to AI, he said, what once required expensive software is now widely accessible for little or no cost. However, he advised caution for marketing and outbound communications, as AI responses can vary in effectiveness depending on the audience.
Moreover, Watal touched on the ethical dimensions of AI and the importance of digital governance. He cited his involvement in nonprofit initiatives like wdg.org, which advocate for guardrails that protect digital identities and prevent misuse of AI-generated likenesses. “Who owns the digital you?” he asked, calling the issue “very close to digital slavery.”
Ultimately, Watal urged business owners to identify and empower the tech-savvy individuals already on their teams.
“Now would be the time to bring [your tech-friendly employee] to the forefront—give them the seat at the table, which you may not have given them, but now is the time they deserve it.” – Ed Watal
