• 25.07.25

Why AI-assisted web building wins over fully automated solutions

For hosting providers serving small business customers, the push to integrate AI into digital tools is becoming hard to ignore. From site builders to e-commerce platforms, the term “AI-powered” has quickly evolved from a nice-to-have to a competitive necessity.

But while the AI race accelerates, there’s one critical truth hosting companies should keep front of mind: small business owners still want control. And the way you introduce AI into your product suite can be the difference between driving retention and driving users away.

The state of AI adoption: Curious, but cautious

The appetite for AI among SMEs is growing. According to a 2024 survey from the British Chambers of Commerce, 25% of small and medium-sized business owners say they’re already using AI tools in some form. However, the same survey also highlights a tension, with 24% of those surveyed stating they’re not currently using it but plan to do so in the future, and 43% saying they have no plans to use it at all.

These numbers point to a clear theme: AI adoption is increasing, but a degree of scepticism still remains.

Why fully automated website builders miss the mark

Some AI website builders promise near-instant site generation: just input your business type, and a finished website appears seconds later. While impressive in theory, this approach often strips away the very thing small business owners care most about: personalisation.

Fully automated tools can feel generic, rigid and opaque. If customers can’t easily tweak layouts, rewrite copy, or understand how decisions are made, they feel sidelined and unsupported. That’s a fast track to churn.

Why AI-assisted is the smarter bet right now

At BaseKit, our approach is simple: use AI to accelerate and assist, not override. Our tools are designed to help small business users get online faster. Our site builder now has AI onboarding, AI content creation and AI media generation built in as standard – but the ability for business owners to easily customise and adapt their site through an intuitive interface has remained. 

What has also remained is fully flexible website onboarding. The BaseKit onboarding experience invites users to start with AI, but also to start with a template, where they can choose from a range of pre-styled site designs, or choose a completely blank template if they want to create a website from scratch.

This is especially important currently, when trust in AI is still being formed. Business owners don’t want a black box – they want a partner. AI that explains, assists and adapts to save time, feels less like a risk and more like a benefit.

What this means for hosting providers

If you’re a hosting provider looking to strengthen your value proposition to small business customers, the way you integrate AI matters. By offering AI-assisted site building experiences through white-label tools like BaseKit, you’ll be able to:

  • Cater to varying levels of AI confidence – from early adopters to the AI-cautious.
  • Boost retention by giving customers the confidence to own and evolve their sites.
  • Differentiate your offering from competitors relying on flashy but inflexible automation.
  • Support the adoption of new technology as AI maturity grows across your user base.

And importantly, this approach, particularly via a white-label website builder like BaseKit that keeps license costs low,  helps you future-proof your product strategy without overcommitting to trends that may shift in a matter of months.

The AI landscape is evolving rapidly, but user expectations haven’t yet caught up, especially in the small business space. That’s why we believe now is the time to focus on the present mindset of real users.For small business owners, the ideal AI solution doesn’t take over – it lends a hand. Hosting providers who reflect that reality in their product offerings today will be best positioned to thrive tomorrow.

 

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