So Who Is AI Actually Benefiting?

Everyone was told AI would level the playing field for small builders, but the reality has been a bit different. Large platforms and model providers are reaping the major benefits, leaving many small builders wondering where their piece of the pie went.

Who captures revenue and margins in the AI value chain?

The lion's share of AI revenue and margins lands with large tech platforms and cloud providers. According to Gartner's report, the top five Infrastructure as a Service (IaaS) providers account for 82.1% of the market. Big names like Amazon, which earned $64.8 billion from IaaS in 2024, dominate the market.

These platforms have the distribution and resources to develop and deploy sophisticated AI solutions, capturing value that smaller players can't easily access.

How does cloud and compute concentration affect small builders' ability to compete?

The concentration of cloud and compute resources with a few large providers makes it tough for small builders to compete. They can't match the massive scale and efficiencies that platforms like Amazon and Google achieve. This is a classic case of the rich getting richer. Even with access to cheaper AI models, small businesses lack the distribution channels and customer relationships that drive true value capture.

What concrete benefits are small businesses seeing from AI today and in which functions?

Small businesses are seeing some benefits from AI, but these are often limited to specific functions like personal productivity. A U.S. Chamber of Commerce Foundation report found that 64% of small business employees use AI for tasks like drafting and summarizing. Meanwhile, Business.com reported that 57% of small businesses were investing in AI in 2025, up from 36% in 2023.

What barriers keep the smallest firms and solo operators from realizing AI gains?

There are several barriers. Solo operators adopt AI at a much lower rate (8.4%) compared to firms with employees, as AEO noted. Smaller firms often lack the digital readiness and data access needed to fully benefit from AI tools. Moreover, businesses with an online presence are using AI at nearly seven times the rate of those without, highlighting the digital divide.

What policy or market interventions could redistribute more value to builders and independent developers?

To redistribute more value to builders and independent developers, policies need to focus on improving access to digital tools and infrastructure. Encouraging open data initiatives and reducing the costs associated with scaling operations can help. Supporting community-driven platforms or co-ops could provide alternative pathways for small builders to share resources and compete more effectively.

Source: Federal Reserve Bank of San Francisco data indicates that nearly 40% of small businesses plan to use AI, showing interest, but they need better support to realize potential gains.

The Marketur take: While AI has been touted as a game-changer for small businesses, the benefits are largely captured by big players. Small builders can benefit, but they must navigate barriers and leverage strategic partnerships to make it work for them.