Canadian small businesses are turning to artificial intelligence to save time on marketing and daily operations as rising costs and cautious consumers add pressure heading into the holiday shopping season, says Dave Charest, director of small business success at Constant Contact.
Charest said the company’s latest Small Business Now report found that half of AI users globally cited time savings as the technology’s biggest benefit, with owners using it to draft marketing content, brainstorm ideas, analyze data and handle repetitive tasks. Meanwhile,
Constant Contact’s Canadian holiday research last year found that 72 per cent of small business owners identified inflation and rising costs as their top concern, while 88 per cent of consumers said they were likely to become repeat customers after a positive holiday purchase from a small business.
Competing with larger chains and online markets
Charest said independent retailers can compete with larger chains and online marketplaces by emphasizing unique products, personalized recommendations and local connections rather than relying on discounts. He said AI can help small businesses maintain a consistent marketing presence, but warned that relying on generic, AI-generated content could make it harder for retailers to stand out. The priority, he said, should be using the technology to free up time for meaningful customer relationships.
“AI is mostly giving small business owners time back, which is the thing they’re shortest on. In our most recent Small Business Now report, owners described using it for practical jobs: drafting marketing content, brainstorming, looking at their data and handling repetitive tasks. Globally, half of AI users said saving time was the biggest benefit.
What I’d encourage is treating AI as an assistant. Let it write the first draft of an email or a social post, or help you spot what’s working, and keep the owner’s voice and judgment in the final version. That personal connection is the biggest advantage a local retailer has over a big chain,” explained Charest.
Cautious but not defeated
He described the current state of small retailers in Canada as cautious, but not defeated.
“In our Canadian holiday research last year, 72% of small business owners named inflation and rising costs as their top concern. That research is a year old, and I haven’t seen anything since that suggests the pressure has let up. The challenge going into the holidays is getting noticed without spending more than they have. Owners tell us budget and a steady supply of fresh ideas are what get in their way. Most are still planning to put more into marketing, not less,” added Charest.
Successful small retailers are leaning into what a big retailer can’t copy: a product you can’t find anywhere else, a recommendation from someone who knows the customer, a local story, early access, or a bundle someone put real thought into. Those create value without pulling a small shop into a discount war, he noted.
“The holidays are also a way to win year-round customers. In last year’s Canadian holiday research, 88% of consumers said they were likely to become repeat customers after a good holiday purchase from a small business. A thank-you note or a follow-up email after that first purchase is a simple place to start,” said Charest.
Some Canadian small businesses are becoming more sophisticated in how they use customer data, email marketing and social media to drive repeat purchases, but it’s still early.
“In our survey of Canadian small businesses, 28% of owners said they use customer data and insights to shape their holiday strategy, so most aren’t there yet. It doesn’t have to be complicated. It can be as simple as noticing that someone bought from you last year and suggesting something they’d like this year, or speaking differently to a loyal customer than to someone who just found you. The owners getting the most out of it treat social and email as one conversation. Social helps people find you, and email keeps them coming back,” said Charest.
Biggest risks
“The opportunity is that AI lets a small team do work that used to take a marketing department: creating content, following up with customers and staying visible without spending all day on it.
The biggest risks are the ones owners are already living with: rising costs, tariffs and cautious shoppers. None of that disappears in 2027, which leaves less room to waste time or money.
“There’s a quieter risk with AI itself. If every retailer uses it to say the same thing, no one stands out. I’d rather see an owner use it to save two hours a week and spend them talking to customers than produce 20 more generic social posts. A real relationship with the customer is what a big chain can’t match.”
More from Retail Insider:
