When discussing the priorities of technology leaders, artificial intelligence (AI) often dominates the conversation. However, for small and mid-sized businesses (SMBs), AI is not always the focal point. Unlike larger enterprises with the resources to invest heavily in cutting-edge innovations, SMBs typically concentrate on foundational IT capabilities that drive operational efficiency, strategic growth, and business continuity.

For SMBs, the focus often lies in incremental improvements to their technology foundation. These efforts are driven by operational and sales needs, guided by resource and financial realities. Simply put, many SMBs lack the budget or capacity to undertake the kind of transformative initiatives common in enterprises. Instead, they prioritize pragmatic steps that align with immediate business goals while keeping costs in check.

This translates into initiatives like modernizing and upgrading core business systems—such as ERP, CRM, business intelligence platforms, and cloud-based collaboration tools. By leveraging these systems, SMBs can create a sustainable path for staying current with technology trends. Solutions from providers like Microsoft, Oracle, and Salesforce come with the advantage of ongoing platform investment, promising continual improvements. However, SMBs often face hurdles in realizing these benefits due to legacy business processes and extensive customizations that prevent full utilization of these tools’ capabilities.

Cybersecurity is another top priority for SMB CIOs. With these businesses increasingly targeted by cyberattacks, they must implement cost-effective strategies to protect data and systems. This includes leveraging managed services, automating routine security tasks, and fostering a culture of vigilance through employee training. For SMBs, cybersecurity is less about cutting-edge defense systems and more about fortifying the basics—closing gaps, maintaining compliance, and responding swiftly to emerging threats.

The talent gap also looms large. SMBs face intense competition for IT professionals and often lack the resources to offer the salaries or career opportunities available at larger companies. To bridge this gap, technology leaders are turning to creative solutions: upskilling existing staff, partnering with third-party providers, and embracing low-code/no-code platforms to empower non-technical employees to contribute to digital initiatives.

While AI is not absent from SMB strategies, its application tends to be practical and results-oriented. AI tools are often chosen to address specific challenges, such as customer service automation, predictive analytics, or process optimization. SMB CIOs focus on solutions with clear, tangible ROI, avoiding the large-scale, aspirational projects that enterprises might pursue.

In essence, SMB CIOs are navigating a delicate balance between technology adoption and financial stewardship. Their priorities reflect the need to stay competitive, resilient, and adaptable, all while working within the unique constraints of their organizational size and structure. By focusing on practical, high-impact initiatives, they can drive meaningful progress without overextending their resources.