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How Small Businesses Are Using AI to Innovate and Compete

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What do cheeseburgers, coffee, skincare, and jams have in common? They are all made and sold by small businesses that use artificial intelligence (AI) to grow and compete.

Not only are 40% of small business owners utilizing generative AI—applications like chat and image creation—but nearly all small businesses are using digital tools that are in some way powered by AI. Just recently, I had the chance to connect with several entrepreneurs in California who are all-in on AI.

Bots and Burgers

Liz Truong, the owner of First Born and Breaking Dawn Brunch in Los Gatos, has nearly two decades of experience in the restaurant industry. Bringing that experience together with a desire to innovate, Liz spent nearly seven years developing Burger Bots, a robotic system powered by AI that sauces and boxes cheeseburgers and can even cut tomatoes and onions perfectly every time. Liz is on a mission to deliver quality and efficiency to customers while still relying on her chefs to cook the burgers and servers to connect with guests. The system is fully adaptable and can be customized for different restaurant needs and locations.

Coffee and Chat

Henry’s House of Coffee has been roasting coffee since 1965 in downtown San Francisco. The Kalebjian family, who owns the shop, takes their coffee seriously. Hrag Kalebjian, a member of the U.S. Chamber’s Small Business Council, brought his experience scooping coffee beans as a teenager, together with his business leadership experience, to take Henry’s to the next level by embracing innovation and AI. He has recently deployed a system he designed with the help of ChatGPT that uses software and sensors to spray water on coffee beans to prevent static buildup, which typically makes it difficult to cleanly bag coffee for distribution. Hrag also encourages his baristas and staff to join him for weekly sessions where he teaches them about innovation, like embracing AI.

Hrag Kalebjian

Skincare and Sourcing

Brook Dougherty is the founder and chief alchemist of JustUs, a company devoted to making quality skincare products that cater to women who aren’t always represented by the traditional cosmetics industry. Based in the Coachella Valley, JustUs uses natural botanicals along with lab-developed ingredients in their products and is known for collaborating with non-profits through their Small Batch, Big Change program that sells exclusive products that financially support a number of charitable causes. JustUs has used AI to build industrial-scale equipment to boost production. Roughly 20% of small businesses nationally are using AI to help find lower-cost suppliers to keep from passing higher costs to consumers. Brook said her company has also utilized ChatGPT to help her source ingredients, which is particularly helpful at a time when small businesses are worried about tariffs and inflation.

Brook Dougherty

Jamming and Branding

Risa and David Baron own Jackie’s Jams, a small company in the San Diego area that produces handmade jams from local fruit. Risa and David got their start selling jams at farmers’ markets. Now, Jackie’s Jams is selling in select Whole Foods and Sprouts markets and is served in luxury hotels like the Hotel Coronado. Tripleberry is their number one seller, but like all small businesses, they are looking for ways to multiply their time to compete. Risa has been able to use AI to increase productivity by helping her write social media advertising and messages. In fact, using generative AI tools has helped Risa save at least an hour of her day on backend office tasks. Nationally, the number one use of AI for small businesses is marketing, as small businesses using AI are seeing increased sales and hiring compared to their competitors who are not.

Risa and David Baron

About the author

Jordan Crenshaw

Jordan Crenshaw

Crenshaw is Senior Vice President of the Chamber Technology Engagement Center (C_TEC).

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Could AI nursing robots help healthcare staffing shortages?

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Around the world, health care workers are in short supply, with a shortage of 4.5 million nurses expected by 2030, according to the World Health Organization (WHO).

Nurses are already feeling the pressure: around one-third of nurses globally are experiencing burnout symptoms, like emotional exhaustion, and the profession has a high turnover rate.

That’s where Nurabot comes in. The autonomous, AI-powered nursing robot is designed to help nurses with repetitive or physically demanding tasks, such as delivering medication or guiding patients around the ward.

According to Foxconn, the Taiwanese multinational behind Nurabot, the humanoid can reduce nurses’ workload by up to 30%.

“This is not a replacement of nurses, but more like accomplishing a mission together,” says Alice Lin, director of user design at Foxconn, also known as Hon Hai Technology Group in Taiwan.

By taking on repetitive tasks, Nurabot frees up nurses for “tasks that really need them, such as taking care of the patients and making judgment calls on the patient’s conditions, based on their professional experience,” Lin told CNN in a video call.

Nurabot, which took just 10 months to develop, has been undergoing testing at a hospital in Taiwan since April 2025 — and now, the company is readying the robot for commercial launch early next year. Foxconn does not currently have an estimate for its retail price.

Foxconn partnered with Japanese robotics company Kawasaki Heavy Industries to build Nurabot’s hardware.

The firm adapted Kawasaki’s “Nyokkey” service robot model, which moves around autonomously on wheels, uses its two robotic arms to lift and hold items, and has multiple cameras and sensors to help it recognize its surroundings.

Based on its initial research on nurses’ daily routines and pain points — such as walking long distances across the ward to deliver samples — Foxconn added features, like a space to safely store bottles and vials.

The robot uses Foxconn’s Chinese large language model for its communication, while US tech giant NVIDIA provided Nurabot’s core AI and robotics infrastructure. NVIDIA says it combined multiple proprietary AI platforms to create Nurabot’s programming, which enables the bot to navigate the hospital independently, schedule tasks, and react to verbal and physical cues.

AI was also used to train and test the robot in a virtual version of the hospital, which Foxconn says helped its speedy development.

AI allows Nurabot to “perceive, reason, and act in a more human-like way” and adapt its behavior “based on the specific patient, context, and situation,” David Niewolny, director of business development for health care and medical at NVIDIA, told CNN in an email.

Staffing shortages aren’t the only issue facing the health care sector.

The world’s elderly population is growing rapidly: the number of people aged 60 and over is expected to increase by 40% by 2030, compared to 2019, according to the WHO. By the mid-2030s, the UN predicts that the number of individuals aged 80 and older will outnumber infants.

Over the past decade, the number of health care workers has steadily increased, but not fast enough to beat population growth and aging. Southeast Asia is expected to be one of the worst-impacted regions for health care workforce shortages.

With these impending stressors on the health care system, AI-enhanced systems can provide huge time and cost savings, says nursing and public health professor Rick Kwan, associate dean at Tung Wah College in Hong Kong.

“AI-assisted robots can really replace some repetitive work, and save lots of manpower,” says Kwan.

Foxconn plans to commercially launch Nurabot in 2026.

There will be challenges, though: Kwan highlights patient preference for human interaction and the need for infrastructure changes in hospitals.

“You can look at the hospitals in Hong Kong: very crowded and everywhere is very narrow, so it doesn’t really allow robots to travel around,” says Kwan. Hospitals are designed around human needs and systems, and if robots are to become central to the workflow, this will need to be reimagined in hospital design going forward, he adds.

Safety is also paramount, says Kwan — not just in terms of mitigating physical risks, but the development of ethical and data protection protocols, too — and he encourages a slow and cautious approach that allows for rigorous testing and assessment.

Robots are not entirely new to health care: surgical robots, like da Vinci, have been around for decades and help improve accuracy during operations.

But increasingly, free-moving humanoids are assisting hospital staff and patients.

In Singapore, Changi General Hospital currently has more than 80 robots helping doctors and nurses with everything from administrative work to medicine delivery.

Robots are revolutionizing the healthcare industry with increased precision and diagnostics power. Changi General Hospital, pictured, employs more than 50 robots to help care for patients. <strong>Scroll through to see more innovative robots reinventing healthcare.</strong>

And in the US, nearly 100 “Moxi” autonomous health care bots, built by Texas-based Diligent Robots with NVIDIA’s AI platforms, carry medications, samples, and supplies across hospital wards, according to NVIDIA.

But the jury is still out on how helpful nursing robots are to staff. A recent review of robots in nursing found that, while there was a perception among nurses of increased efficiency and reduced workload, there is a lack of experiential evidence to confirm this — and technical malfunctions, communication difficulties and the need for ongoing training all presented challenges.

Tech companies are investing heavily health care: in addition to NVIDIA, the likes of Amazon and Google are both exploring new opportunities in the $9.8 trillion health care market.

The smart hospital sector is a small, but rapidly expanding, component of this. It was estimated at $72.24 billion in 2025, according to market research company Mordor Intelligence, with the Asia Pacific region the fastest-growing market.

Nurabot is currently being piloted in Taichung Veterans General Hospital in Taiwan, on a ward that treats diseases associated with the lungs, face and neck, including lung cancer and asthma.

During this experimental phase, the robot has limited access to the hospital’s data system, and Foxconn is “stress testing” its functionality on the ward. This includes tracking metrics like the reduction in walking distance for nurses and the delivery accuracy, as well as qualitative feedback from patients and nurses. Early results indicate that Nurabot is reducing the daily nursing workload by around 20–30%, according to Foxconn.

Taichung Veterans General Hospital declined to comment on Nurabot for this story.

According to Lin, Nurabot will be formally integrated into daily nursing operations later this year, including connecting to the hospital information system and running tasks autonomously, ahead of its commercial debut in early 2026.

While Nurabot won’t solve the lack of nurses, Lin says it can help “alleviate the problems caused by an aging society, and hospitals losing talent.”





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Alibaba’s Shares Soar After Investors Buy Into Big AI Moves

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(Bloomberg) — Alibaba Group Holding Ltd.’s stock gained the most in about two weeks after the company initiated a series of moves intended to shore up its place in China’s AI development boom.

The e-commerce leader’s shares climbed more than 7% in early Hong Kong trading, tracking an overnight gain in the US. That takes the Chinese company’s gain to over 80% this year, a rally driven by aggressive moves to expand into the fledgling field of artificial intelligence.

Alibaba this week raised $3.2 billion in convertible bonds to bankroll the country’s biggest AI infrastructure budget and cloud service. It unveiled updates to flagship Qwen-series models designed to compete with DeepSeek and OpenAI. And The Information reported that Alibaba and Baidu Inc. are starting to employ in-house chips in the training of artificial intelligence, replacing costly Nvidia Corp. accelerators. Baidu’s stock rose close to 13% in Hong Kong to its highest since October 2024.

Alibaba is staging a comeback after years of regulatory scrutiny hammered its internet business. The firm co-founded by Jack Ma has established itself this year among the frontrunners of a nationwide AI frenzy. It’s since declared itself wholly in pursuit of artificial general intelligence — the holy grail for many tech companies.

Its recent moves coincide with growing optimism about the outlook for a technology expected to revolutionize industry and economies. This week, Oracle Corp. helped ignite a sectoral rally after delivering a blowout outlook for global AI spending.

“Alibaba’s recent moves have shifted investors’ focus completely to its AI potential, offsetting the concerns about its price wars in food delivery,” said Paul Pong, a managing director at Pegasus Fund Managers. “With the capability of producing its own chips, it should create more growth drivers.”

The stock gains come even as Alibaba wages war with deep-pocketed rivals on another front. 

This week, the company declared it was sinking more money into incentives and subsidies to power its local services and e-commerce business. It’s committing another 1 billion yuan ($140 million) of incentives to drive more traffic to one of its most popular online services, cranking up the heat on JD.com Inc. and Meituan in their ongoing battle for Chinese consumers.

Some analysts regard that as a positive given it’s competing hard for users to drive its core business. But others point to margin erosion at a time AI’s monetization potential remains elusive.

What Bloomberg Intelligence Says

Alibaba’s latest AI model releases, including the more efficient Qwen3-Next and 1-trillion-parameter Qwen-3-Max-Preview, should support demand for its cloud services. However, returns from the segment are set to remain poor, given low margins and disproportionately high capital costs. Quarterly adjusted Ebita in the cloud intelligence division rose by just $86 million in the 12 months ended June 2025. Tencent remains better placed to generate a near-term return on AI, in our opinion.

– Robert Lea and Jasmine Lyu, analysts

Click here for the research.

(Updates with Baidu’s stock from the third paragraph.)

More stories like this are available on bloomberg.com



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Databricks AI Chief to Exit, Launch a New Computer Startup

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(Bloomberg) — Naveen Rao, the head of artificial intelligence at the $100 billion startup Databricks Inc., is planning to leave his position to launch a new venture making a novel type of computer, according to a person familiar with the matter. 

A spokesperson for Databricks confirmed that Rao is transitioning to an advisory role at the company, and said that Databricks is planning to invest in his new startup. The spokesperson declined to disclose the size of the investment.

Rao has also held early talks with other investors about backing the new company, which would focus on building a next-generation computer to address the rising costs of AI computing power, said the person familiar with the conversations, who asked not to be named discussing private information.

Rao declined to comment on his plans for the new company.

Rao is a serial entrepreneur who sold his data and AI analytics startup MosaicML to Databricks in 2023 for $1.3 billion. MosaicML had raised about $30 million from investors including Maverick Ventures, Lux Capital and DCVC. Before that, Rao co-founded Nervana Systems, a machine intelligence platform, which was acquired by Intel Corp. in 2016 for about $350 million. 

Given Rao’s track record, the new venture could attract significant investor interest at a lofty valuation. He would also join a wave of prominent tech executives who’ve launched startups, including former OpenAI Chief Technology Officer Mira Murati, whose company Thinking Machine Labs was last valued at $10 billion, and ex-Salesforce co-CEO Bret Taylor, whose two-year-old AI startup Sierra was also recently valued at $10 billion.

Databricks recently raised $1 billion in a funding round that made it one of the country’s most valuable startups. The round was co-led by Andreessen Horowitz, Insight Partners, MGX, Thrive Capital and WCM Investment Management.

More stories like this are available on bloomberg.com



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