Sep 17, 2025
When most leaders hear the word artificial intelligence, they picture algorithms, automation, and dashboards. But the real story of AI adoption in the lower middle market (LMM) isn’t about the technology at all. It’s about the people.
Too often, discussions about AI are framed around efficiency and cost savings. That’s important — but if you stop there, you risk alienating the very employees who will determine whether your AI initiatives succeed. AI should be viewed as a tool for empowerment, not replacement. Done right, it can give people agency, help them escape repetitive tasks, and make their roles more fulfilling.
Fear Is the Biggest Barrier
There are about 350,000 LMM firms in the U.S., employing millions of people. For many of those employees, new technology sparks anxiety. Headlines about “robots taking jobs” fuel fears of layoffs or irrelevance.
In fact, surveys show that 45% of workers worry AI could replace them, while more than 60% of Americans expect AI will lead to fewer jobs overall. This fear is real, and ignoring it is a recipe for resistance.
Yet the data tells a different story inside companies that are already using AI. A Goldman Sachs survey found that 80% of small business owners say AI is enhancing their workforce, not replacing it. Even more encouraging, nearly 40% expect AI will create new jobs in their businesses within the year.
The Power of Augmentation
When employees actually get their hands on AI, the narrative shifts. Instead of “this is going to take my job,” they discover: “this makes my job easier.”
Reps who used to spend hours assembling quotes can now generate them in minutes, leaving more time to nurture customers.
Finance teams who spent days on manual reporting can let AI handle the data pulls and spend their time interpreting the results.
Service reps who answer endless routine inquiries can let chatbots handle FAQs while they focus on complex customer issues.
In short, AI handles the drudgery so people can focus on the creative, relational, and strategic work that makes their jobs meaningful. No wonder surveys find nine out of ten employees using AI report saving significant time and being more productive.
Training Is the Missing Link
If empowerment is the goal, training is the bridge. Employees need to feel confident using AI tools — and unfortunately, that’s where many organizations fall short.
A recent McKinsey survey found that nearly half of employees want more formal AI training, yet more than one in five report receiving little to none from their employer. Without training, even the best tools risk being underused or misunderstood.
For LMM firms, this is an opportunity. Unlike a Fortune 500 with 50,000 employees to train, you can run hands-on workshops or set up AI champion programs with minimal overhead. Imagine a one-day workshop where your sales team learns to use AI to generate prospect research, your ops team learns to automate reports, and your finance team experiments with forecasting tools. The impact on both morale and productivity would be immediate.
Culture Starts at the Top
Technology rollouts succeed or fail based on leadership signals. In a close-knit company, employees look to their CEO, founder, or owner for cues.
If leadership positions AI as a cost-cutting tool, employees will brace for layoffs. If leadership frames it as a force multiplier for people, employees will lean in. When a CEO personally champions AI adoption — and even learns alongside their team — it sends a powerful message: “This is about making your work easier and more valuable, not replacing you.”
In the LMM space, where leadership is often highly visible and directly involved, this cultural influence is even stronger. Use it.
A Human-Centered AI Playbook
So what does it take to adopt AI in a way that empowers rather than threatens?
Communicate early and often. Be transparent about why you’re adopting AI and how it will support your people.
Show quick wins. Pick use cases that remove obvious pain points and demonstrate value in weeks, not months.
Invest in training. Give employees the skills and confidence to use AI daily.
Celebrate successes. Highlight stories where AI helped employees shine, not just where it saved costs.
The Payoff
When you treat AI adoption as a people initiative, not just a technology rollout, you unlock a double dividend: happier, more engaged employees and a more efficient, profitable business.
Employees who feel empowered by AI are more likely to embrace change, suggest new use cases, and help the company move faster. That energy compounds over time. It’s not just about saving hours — it’s about creating a culture where people feel they have the tools and trust to do their best work.
What Can You Do As A Leader?
If you’re leading a lower middle market business, the first step isn’t picking a tool — it’s preparing your people. That’s why we recommend pairing every AI implementation with team training designed to build confidence and excitement.
We’d love to help. Reach out to discuss setting up an AI Training Workshop for your team, or schedule an AI Opportunity Assessment to see where AI can empower your employees and transform your workflows.
Because in the end, AI is about people. And people — not algorithms — are what make companies thrive.
