top of page
Search

AI-Powered Branding for SMEs: Insights from the OECD Report

  • Writer: Safak Sahin
    Safak Sahin
  • Jun 3
  • 3 min read

In recent years, Artificial Intelligence (AI) has emerged as a game-changer for small and medium-sized enterprises (SMEs) seeking to enhance their branding strategies. The 2024 OECD D4SME Survey provides a comprehensive look at how SMEs across seven OECD countries (France, Germany, Italy, Japan, Korea, Spain, and the United States) are leveraging digital tools, particularly AI, to strengthen their brand identity, engage customers, and build resilience. This blog post summarizes key findings from the report and explores how SMEs are using AI to transform branding, supported by recent trends and insights from 2023–2025.

SMEs are getting more digitalized to achieve their business objectives.
SMEs are getting more digitalized to achieve their business objectives.

Key Findings from the 2024 OECD D4SME Survey

The OECD survey, conducted in 2023 with 1,005 SMEs, highlights the growing role of digital tools in SME operations, with a particular focus on generative AI. Here are the key takeaways relevant to branding:

  • Generative AI Adoption: Approximately 18% of surveyed SMEs use generative AI tools, such as ChatGPT, to create content and gather insights. This is significant given that large language models (LLMs) became widely accessible only in late 2022. SMEs leverage these tools for tasks like crafting brand-aligned marketing content, automating customer service, and personalizing customer interactions, which are critical for branding.

  • Positive Perception of AI: 57% of respondents view generative AI as offering more opportunities than risks, with managers (62%) and self-entrepreneurs (59%) being particularly optimistic. This positive outlook underscores AI’s potential to enhance brand creativity and efficiency, enabling SMEs to compete with larger firms.

  • Data-Driven Branding: 72% of SMEs use data to inform strategic decisions, with more digitalized businesses (77%) leading the way. Data analytics helps SMEs understand customer preferences, optimize brand messaging, and track campaign performance, aligning with modern branding demands.

  • Challenges in Digitalization: Barriers such as lack of digital skills (43%), high costs (37%), and regulatory complexities (12%) hinder full AI adoption for branding. These challenges highlight the need for targeted support to help SMEs integrate AI effectively into their branding strategies.

  • Government Support Gaps: Only 18% of SMEs are aware of government programs supporting digitalization, with uptake even lower (8% in Korea, 4% in Japan). This lack of awareness limits SMEs’ access to resources that could enhance AI-driven branding initiatives.

AI’s Role in SME Branding

The survey findings align with broader trends in AI-driven branding from 2023–2025, as seen in recent articles and posts on X:

  • Content Creation and Personalization: Generative AI enables SMEs to produce high-quality, brand-consistent content at scale, such as social media posts, product descriptions, and email campaigns. A 2025 X post by @StartGrowthHack noted AI’s ability to craft content in a unique brand voice, reducing costs)!=

  • Visual Branding: AI tools like DALL-E and Midjourney allow SMEs to create logos, ads, and visuals cost-effectively. A 2025 arXiv study found that AI-generated marketing images often outperform human-designed ones in click-through rates, helping SMEs enhance their visual brand identity.

  • Customer Engagement: AI-powered chatbots and sentiment analysis tools enable SMEs to maintain consistent brand interactions and monitor reputation in real time, as highlighted by Coca-Cola’s AI-driven vending machine campaigns (X, 2025).

Ethical and Practical Considerations

While AI offers significant branding opportunities, SMEs face ethical and practical challenges:

  • Transparency and Trust: A 2023 WIRED article emphasized the need for transparency in AI-generated content to maintain brand authenticity, as undisclosed use can erode consumer trust.

  • Skill Gaps: The OECD survey notes that 43% of non-digitalized SMEs lack knowledge about AI tools, and 27% of those dissatisfied with digitalization cite skill shortages. Training programs are essential to bridge this gap.

  • Regulatory Compliance: The 2023 EU AI Act underscores the importance of ethical AI use, addressing concerns like copyright and bias in AI-generated branding content.

Future Directions for SMEs

The OECD survey and recent trends suggest that SMEs can enhance their branding by integrating AI strategically. Governments and private platforms can play a crucial role by offering accessible training and financial support, such as Japan’s IT Implementation Subsidies or the EU’s Digital Europe program, to help SMEs overcome barriers like cost and skill shortages. As AI tools become more user-friendly, SMEs can leverage natural language processing and data analytics to create compelling, personalized brand experiences that rival those of larger enterprises.

Conclusion

AI is revolutionizing SME branding by enabling cost-effective content creation, personalized customer engagement, and data-driven strategies. The 2024 OECD D4SME Survey highlights the rapid adoption of generative AI and its positive reception among SMEs, despite challenges like skill gaps and limited government support awareness. By addressing these barriers and embracing ethical AI practices, SMEs can harness AI to build resilient, impactful brands in an increasingly digital world.

References

  • OECD. (2024). SME Digitalisation to Manage Shocks and Transitions: 2024 OECD D4SME Survey.

  • WIRED. (2023). Use of AI is seeping into academic journals—and it’s proving difficult to detect.

  • X Posts by @StartGrowthHack, @SarahLevinger (2025).


 
 
 

Comments

bottom of page