From Local to Global: Kentucky Small Businesses Embrace AI to Compete and Grow

Small businesses are the foundation of Kentucky’s economy, representing thousands of employers in communities across the state. As challenges like rising costs and workforce shortages persist, many Kentucky entrepreneurs are turning to artificial intelligence and digital tools to reach customers, improve efficiency, and grow their operations.

In an interview with The Bottom Line during National Small Business Month, Diana Doukas, Head of Economic Opportunity at Meta, shared how small businesses across Kentucky are embracing AI and digital platforms to navigate these challenges and compete on a larger scale.

According to new data from Meta, more than 33,000 small businesses in Kentucky are using AI technologies to streamline their operations. These tools allow owners to automate customer communication, create marketing content, and manage time-consuming tasks, freeing up capacity to focus on long-term growth. Meta, a member of the Kentucky Chamber, estimates its technologies contribute $5.5 billion in annual economic output across the state.

“Kentucky is a great example of the diversity of the American economy. You have rural, metropolitan, and everything in between,” Doukas said. “Supporting small businesses is vital because they are the backbone of the economy—it’s where most jobs are created, where innovation happens, and where new ideas are born.”

Doukas explained that digital tools—particularly those powered by AI—are helping small businesses compete more effectively and efficiently. A recent survey showed that businesses using AI-powered advertising tools through Meta are seeing an average return of $4.52 for every $1 spent, making these tools especially valuable for businesses operating in rural or resource-limited environments.

“If you can help make it so that business owners can work on their business, not in their business, I think that’s critical,” she said.

More than 330,000 businesses in Kentucky have an active presence on Facebook, with 98% classified as small or medium-sized, and over half located in rural communities. Doukas emphasized that while a business may be locally rooted, businesses are able to extend their reach now more than ever.

These tools are also helping businesses address workforce challenges. From finding new talent to building brand recognition, Doukas said digital platforms are proving essential to long-term success in the modern economy.

“The question becomes: how do you reach your customers? How do you draw them in and convince them to travel to you or buy from you?” she said. “Digital tools allow for physical visits, but also extend your reach far beyond your street or town. That includes finding new customers and new employees—by establishing a digital presence and communicating with people on the platform, you can reach those who may be passionate about your work and want to join you.”

Doukas also pointed to the time businesses can save by leveraging digital tools. A recent report from the Small Business & Entrepreneurship Council estimates that AI use saves businesses across the country approximately $700 billion annually through improved efficiency. For small business owners, even gaining back an hour in the day can be transformative, said Doukas.

While Meta is one of several companies offering AI and digital tools, Doukas stressed that technology is reshaping how small businesses operate, connect, and grow. From AI-generated messaging and translation features to personalized ad targeting, these platforms are helping Kentucky businesses of all sizes thrive in an increasingly digital economy.

This results in local businesses shifting their market. A physical storefront may still anchor a business in its community, but digital tools can help it scale and serve customers around the world. All business is local, Doukas said, but with the right tools, local can grow globally.