Researchers at the John J. Heldrich Center with support from the New Jersey State Policy Lab are currently working on a project to examine how New Jersey’s artificial intelligence (AI) initiatives can better align with the evolving needs of small businesses. This blog post offers updates on the study’s progress, as the research team has conducted a series of focus groups with small business owners in Middlesex County to capture their perspectives and lived experiences navigating the incorporation of AI tools into their businesses.
To reach potential research participants, the research team began recruitment using data from the New Jersey Selective Assistance Vendor Information (NJSAVI) system, which includes businesses registered with the state as small business enterprises, minority-owned businesses, women-owned businesses, and other designated demographics. The specific business designations within the dataset enabled the focus group recruitment efforts to prioritize the inclusion of women- and minority-owned businesses, a particular population of interest to this research.
Recruitment for the focus groups initially targeted firms within the Retail Trade and Accommodation and Food Services industries. However, low response rates to early outreach efforts made it difficult to recruit a sufficient number of participants from these sectors. As a result, the recruitment strategy was broadened to include firms in the Professional, Scientific and Technical Services and Healthcare and Social Assistance sectors, which improved participation. These four industries collectively represent the highest concentration of small and medium enterprises in Middlesex County and offer perspectives from businesses operating in different market, workforce, technological, and regulatory contexts (Lightcast, 2026). These differences are particularly relevant to the study because opportunities to apply AI may vary considerably by industry depending on businesses’ familiarity, capacity, and comfort with doing so. The expanded scope, therefore, allowed the research team to explore a wider range of experiences while recognizing that differences in recruitment response and industry representation may have influenced the perspectives captured. During May and June 2026, the research team conducted six focus groups involving representatives from 21 businesses.
Preliminary themes from the focus groups reflect a growing interest in the implementation of AI tools and understanding of the landscape that governs the use of these tools. Middlesex County small business owners shared examples of using AI tools, such as OpenAI’s ChatGPT and Microsoft’s Copilot, to personalize business operations, expand capacity, and maximize operational efficiency. For example, some focus group participants mentioned using AI tools to develop marketing strategies and materials to attract new customers, while others spoke of customizing materials for their existing customer base. Although most participants expressed a general familiarity with the relevance of AI and associated tools to their small businesses, the depth of their understanding and practical experience varied significantly. These differences appeared to reflect both industry context and individual levels of comfort with technology use. When asked about potential concerns they might have when integrating AI tools into their business model, concepts like originality, security, and reliability of AI-generated information were mentioned. A majority of focus group participants expressed interest in learning opportunities and resources tailored to small businesses and their respective industries to better maximize the potential of AI tools in their operations.
Prior to conducting the focus groups, the research team examined the literature landscape to see what is known about AI’s intersection with these industries of focus, and while some literature exists for Professional, Scientific, and Technical Services and Healthcare and Social Assistance, less is known about Retail Trade and Accommodation and Food Services’ utilization of AI. As such, these focus groups offer preliminary but valuable insights into the varied experiences of small businesses across industries in adopting AI. The findings highlight variation in awareness, technological and staffing capacity, practical applications, and perceived barriers. They also point to the importance of developing AI initiatives and resources that reflect both the shared needs of small businesses and the distinct conditions under which firms in different industries operate.
These focus groups provide valuable insight into how small businesses across Middlesex County are thinking about, experimenting with, and responding to AI. Their experiences will complement the study’s quantitative analysis, which examines labor market trends and measures AI-related risk across selected industries in the county. The research team’s next step is to bring these findings together in a policy brief that highlights key lessons and offers recommendations for supporting small businesses as they navigate the evolving role of AI.
References:
Lightcast. (2026, May). Industry table: Industries in Middlesex County, NJ (QCEW employees data run 2026.2). Lightcast.