AI is one of the most talked-about topics in the business world right now. Businesses of all sizes are exploring how to make the most of it – from streamlining operations to generating content.
But as a small business owner, your goal is clear. You want to generate leads so you can reach out, have a conversation, and close the deal.
So, the question is: Can AI actually help you generate leads efficiently? And more importantly, should you use it?
In this article, we’ll break down how small businesses can use AI for lead generation, including when it makes sense to use it, when to avoid it, and what tools can help you get started.
Let’s begin with the basics of AI tools and how they fit into your lead generation strategy.
AI use cases for generating leads
The conversation about AI is mostly centered around Large Language Models (LLMs) like ChatGPT or Claude AI. These tools are easily accessible and cost-effective. But when it comes to using AI for lead generation, there’s much more to the toolkit than just content generators.
To understand how to use AI to generate leads, first think about the activities involved in the process. You’ll be creating landing pages, writing emails, running ads, or posting on social media. AI can support almost every step of the process.
Let’s break down some key key AI use cases as a beginner:
Large Language Models (LLMs) for copywriting and content generation
LLMs like ChatGPT, Claude AI, and Gemini can help you create and consistently publish content quickly, without hiring a large team. Using these tools, you can generate ad copy and landing page content, email sequences for cold outreach or follow-ups, and brainstorm blog ideas, scripts, or lead magnets (such as eBooks, checklists, etc.).
These tools, like most other AI tools, work by responding to your command or prompt. You can ask a LLM to do research on your behalf or create certain content based on your requirements.
Things to consider while using LLMs for content creation
One drawback of over-reliance on a large language model is that your message may come across as generic, since these tools are accessible to everyone.
Although the output depends on your prompt, LLMs generate content based on general knowledge of the world. They don’t write based on your unique experience or deep understanding of your customers. Also, AI-generated content might not perform as well as human-created content in terms of search engine visibility.
Always ensure you research well about your customers before asking AI to generate content for you. Also, keep in mind that AI doesn’t replace your expertise in solving real-life problems. Therefore, you should always add your input to the final content.
How to use an LLM for lead generation
A good approach is to start with a free tool; most leading LLMs offer free subscriptions. Use them for research (like you would a search engine) rather than relying on them to write your content entirely. Then, polish and finalise the article yourself. This method significantly reduces your research time while keeping your message authentic and original. You can take the same approach while writing emails as well.
If you’re running ads, use these tools to brainstorm and generate messaging ideas. But don’t rely on them entirely to write business messages for your prospects. A great message should resonate with your leads, regardless of whether it looks good to you or not.
AI Image generators for visuals and graphics
Graphics play a huge role in grabbing people’s attention online, whether you’re pushing your brand on social media, landing pages, or ad campaigns. Thankfully, AI can create visuals and graphics at your command. Using image generator tools like Midjourney, DALL·E, and Adobe Firefly, you can generate ad creative elements, social media graphics, illustrations, or visual elements for landing pages and lead magnets (like eBooks or guides).
Things to consider while using AI image generators for lead generation
If your prompts are not specific, visuals created with AI may lack a consistent brand feel, looking like generic AI art. Also, AI can generate beautiful images, but it doesn’t always understand your product, audience, or emotional triggers. And you might spend more time than expected refining prompts to get the right output, especially for complex ideas.
Keep in mind that AI image generators may not be particularly useful for logo creation or image/graphics editing. You may still need basic knowledge of design tools like Canva to generate complete graphics if you don’t have an in-house design team.
To make the most of AI image generation tools, you must learn how to write effective prompts.
How to use an AI image generators to generate leads
Start by deciding on a concept for your visual, then refine it to match your brand. Once you have a clear idea, prompt the AI with as many specific details as possible to generate the visual you need.
In the final step, use a design tool like Canva to fine-tune and prepare the image or graphic for your final output. Use the final image or graphics in your marketing materials (e.g., for social media posts, lead generation ads, etc).
Stay consistent by reusing certain styles or formats to maintain visual identity across platforms. And finally, combine AI graphics with human input. Use design tools like Canva to add elements like headlines and CTAs.
You can also use AI-generated images for your cover images, emails, or other organic marketing materials. However, do note that free stock image websites like Unsplash or Pexels offer high-quality, royalty-free images that you can use for both personal and commercial purposes.
AI Video generation tools for videos
Videos are among the most effective ways to generate leads, especially with the rise of short-form platforms like TikTok. There’s never been a better time to connect with your audience through video. That’s why marketers consistently publish videos on social platforms to engage their target audience.
However, creating videos is not only time-consuming, it also demands a range of skills. Fortunately, AI video generators like Sora and Synthesia make it easier than ever to produce videos with simple prompts.
While AI video tools are relatively new and can be slightly pricey, they offer tremendous value by reducing production time and effort. Tools like Sora and Kling, are built purely for generating videos from commands. Others, like Synthesia, are tailored for specific use cases, such as creating marketing videos with ease.
Things to consider while using AI video generators for lead generation
AI video generators can save time and effort, but they’re not a plug-and-play solution. Most AI videos feel generic and lack depth even with clear and detailed prompts. You’ll need to go through multiple rounds of edits and prompt tweaks to get a video that aligns with your goals, especially for campaign-specific content.
Also, AI video tools aren’t ideal for every use case. They might not offer enough flexibility for specific edits, custom animations, or advanced branding elements. Some tools are better suited for explainer-style or avatar-based videos rather than product showcases or creative ads.
To get the most out of these tools, invest time in learning how to write better prompts, explore platform-specific features, and have a basic knowledge of editing tools for a good final output. For basic explainer videos, try using free stock clips and add an AI voiceover using a video editor.
How to use an AI video generator to generate leads
Start by deciding on the type of video you want to create; for example, a product explainer, testimonial-style video, or a short promotional clip. Then, refine the concept to align with your brand’s tone, messaging, and audience.
Once you have a clear idea, prompt the AI video generator with as many specific details as possible. Include elements like the script, video style (animation or photorealistic), camera movement, scene descriptions, visual style, etc. The more detailed your input, the better the output.
Use a video editing tool (like Canva, Descript, Capcut, or even in-app editors provided by the AI platforms like Runway ML) to fine-tune the visuals. Use the final video in your lead generation materials.
You can also use AI videos for your TikTok handle, YouTube channel, or email newsletters. However, keep in mind that editing tools like Canva or CapCut are still useful if you want to edit or repurpose short videos quickly.
Chatbots and conversational AI for engaging with leads when you’re not around
AI-powered chat tools like Tidio and Drift can help you engage website visitors in real time, answer frequently asked questions, and even collect contact details or book calls without needing a human on standby. Chatbots can be really useful to capture leads around the clock, even outside regular working hours.
You can use a conversational AI on live chat widget , Facebook Messenger, and other messaging apps on your phone. These AI tools can also guide visitors toward taking an action, such as signing up, booking a demo, or downloading a lead magnet.
However, you may want to consider a few things. For instance, bots may sometimes misunderstand or oversimplify complex queries, providing replies that may frustrate some users. Additionally, poorly set up chatbots might create confusion or dead ends in conversations. Default replies can feel robotic and impersonal, so relying on bots to assist customers on each part of their journey can hurt relationships and lead quality.
How to use chatbots for lead generation
If you’re new to using chatbots, start with simple goals, such as collecting email addresses or answering frequently asked questions. You can always expand their functionality as you become more familiar with the system. Customize the chatbot’s tone and language to match your brand voice, making interactions feel more natural and engaging.
Be sure to include fallback options (like “Talk to a human”) to prevent frustration when the bot can’t handle a query.
Remember, chatbots shouldn’t replace human interaction entirely. Use them to qualify leads, but ensure those leads are handed off to a real person for the next steps. More importantly, review conversation logs regularly to fine-tune your chatbot’s logic and improve its performance.
How to use AI to generate leads
The lead generation process follows the same fundamental steps whether you use AI or not. The key is to leverage AI at each stage to save time, reduce effort, and improve your results.
Step 1: Know exactly who you’re targeting and what you’re offering
You probably know who your customer base is as you’ve been working with them. However, if you’re not sure who you should target precisely, or you’ve been targeting the general population based on assumptions, it’s time to understand your buyer on a deeper level. Targeting the right people is the foundation of any good lead generation effort.
So in the first step,
- Create a detailed buyer persona for accurate targeting
- Create a lead magnet based on your buyer persona
AI tip: Use LLM tools like ChatGPT to brainstorm lead magnet ideas for your niche.
Step 2: Create a lead capture system
In this step, the goal is to create a system to capture lead information effectively.
If you’re running ads, most ad platforms offer a built-in lead capture system. However, for organic lead generation, you’ll need to set up your own method for collecting leads.
One of the most effective ways to do this is by creating a landing page with a lead capture form. The idea is to drive traffic from your blog posts, social media content, or other organic channels to this page, where visitors can submit their contact details. On the page, offer a valuable lead magnet (like a free guide or consultation) to boost the chances of people filling out the form with their contact details.
If building a full landing page and form sounds too technical or time-consuming, you can start with a free online lead capture form. Simply add the form link to your organic posts, along with a clear and compelling call-to-action (CTA) that encourages people to click and sign up.
AI tip: Use LLMs to brainstorm and write the landing page headline, subheadline, and CTA and test multiple variations for better conversions.
Step 3: Create and distribute content
Now that you’ve identified your potential customers and built a system to capture their contact details, it’s time to attract them organically and build credibility.
This involves consistently publishing value-driven content—whether it’s blog posts, LinkedIn articles, social media updates, or short videos on platforms like YouTube and TikTok. Your content should offer something useful or interesting to your target audience. That could be a quick tip, a practical insight, or a simple solution to a problem related (directly or indirectly) to your product or service.
For example:
- If you sell software, you might want to publish content around general troubleshooting or productivity hacks.
- If you run a car repair business, you could share emergency tips or simple DIY fixes for common vehicle issues.
No matter the format, make sure to include a clear call-to-action (CTA) in every post. Direct your audience to download your lead magnet or book a free call, linking them to your landing page based on the offer you’ve created.
AI tip:
- Use LLMs (like ChatGPT or Claude AI) to research topics for your content. These tools can simulate the process of searching online and summarise key information, so you don’t have to dig through every result yourself.
- Use AI to repurpose long-form content into bite-sized posts, emails, or scripts to save time while keeping your messaging consistent.
- To create unique visuals that complement your content, try AI image generators like Midjourney or DALL·E for custom graphics, thumbnails, or illustrations.
Step 4: Set up Lead Generation Ads
If you want to generate leads through paid methods, running lead generation ads is the most effective way to generate leads. All major ad platforms like Google, Facebook, TikTok, and LinkedIn allow you to run lead generation ads. These types of ads typically contain two parts, (1) ad visuals to attract leads and (2) lead forms to capture their contact details.
When a user comes across your ad and clicks them, it will redirect them to the form where they can fill out their contact information. These ads allow people to engage with lead generation forms without having to leave the platform or redirecting to a new site.
The goal of this step is to reach a wider audience and generate leads instantly. Therefore, choose the platform your leads use the most (for instance, Facebook, TikTok, Google) and run your paid campaign.
AI tip:
- Use LLMs to write different ad angles and hooks
- Use image generator tools to create attractive ad creatives
- A/B test different ad versions (copy + image)
Step 5: Use a chatbot to capture and qualify leads
While your content and messaging contributes the most to encouraging people to fill out your lead forms n, people may still want to ask questions about certain things. Some people provide their contact details only after being assured of what they’re getting themselves into. Sometimes your posts or CTA may not answer all queries. Therefore, add a chatbot on your website or landing page to engage visitors and prevent missed opportunities round the clock. You can use AI-powered chatbots to offer your lead magnet, answer common questions and even book appointments.
Additional tip: Keep chatbot flows simple, and include a “Talk to a human” option for more complex queries.
Common Pitfalls to Avoid
While AI can be super beneficial to help you generate leads, it doesn’t replace the expertise and understanding you have for your product and customers. If you’re just getting started, here are some common mistakes to watch out for:
1. Relying too heavily on AI
AI can be great for streamlining your efforts, but it shouldn’t completely replace your involvement in core activities like messaging and creativity. Over-automating your content, messaging, or follow-ups can make you look generic or even insincere. Personalisation is still important. Use AI to assist and speed up your workflow, but always apply your judgment and expertise to make the final output feel genuine.
2. Not updating your lead data
Even the best AI tools become ineffective if your lead database is outdated. Targeting the wrong group of people, or using the wrong messages, will waste time and money, plus damage your credibility. Regularly clean and update data for better targeting and results.
3. Choosing complex tools you don’t actually need
It’s easy to get excited by all the fancy AI tools, but more features don’t always mean better results, especially if your requirements are simple and have a small team. Focus on tools and are easy to learn and integrate into your existing workflow. Start simple, then scale up as needed.
4. Ignoring analytics and optimisation
You can use AI to speed up your process, but if you’re not tracking what’s working and what’s not, you’re missing out on growth. Therefore, always keep an eye on your conversion rates, engagement metrics, and chatbot interactions. Use that data to improve your content, messaging, and targeting over time. Optimisation isn’t a one-time task—it’s an ongoing process.
What not to rely on AI for in lead generation
AI can streamline many parts of lead generation, but it shouldn’t be a complete human replacement for your lead generation strategy. Here’s a list of things you shouldn’t be relying on AI for:
- Understanding your customer’s pain points: You need real conversations to understand emotions, motivations, and objections of your customers. You can use AI to analyse data, but they don’t understand your ideal customer like you do, and you still need to be out there talking to your customers and prospects on the ground.
- Building trust and relationships: AI-like chatbots can start and respond to a conversation, but it can’t replace the human touch when it comes to building trust. Personalised follow-ups, empathy, and genuine interactions still matter in improving your chances of converting leads.
- Creating high-impact offers: AI can suggest copy or headlines, but it won’t know what makes your offer irresistible in your niche. That takes deep understanding and experimenting.
- Making strategic decisions: Automation can simplify the lead generation process. But lead generation isn’t just about that. It’s about choosing the right channels, timing, and messaging. These decisions require context, creativity, and a long-term view that AI may not fully grasp.
Does AI help with lead conversion?
The short answer is yes.
Once you’ve generated leads, the next challenge is converting them into paying customers. At this stage, the way you use AI shifts. It’s less about messaging and more about managing relationships effectively.
This is where a CRM (Customer Relationship Management) system becomes essential. And if it’s AI-powered, you get even more value.
You can rely on AI to:
- Automatically detect new leads in your email inbox and instantly send them to your CRM
- Have automatic follow-up reminders so you’re not manually tracking your tasks or forgetting to follow up altogether.
- Automatically qualify leads based on their communication patterns and behavior.
- Automatically detect and import leads from platforms that don’t support direct lead transfers, ensuring no opportunity slips through the cracks.
However, it’s important to note that different tools come with different AI capabilities. So, you’ll need to choose a CRM based on your specific needs and comfort level.
If you’re a small business, you likely don’t need an overly complex system that requires extensive training or a heavy database setup. Instead, look for something simple, intuitive, and tailored to small teams or businesses. Look for a tool that helps you act quickly without overwhelming you with features you won’t use.
The best AI-powered CRM for small businesses
Generating leads is an ongoing process, and to succeed, you need to be active on multiple platforms, wherever your potential customers are. But the real challenge isn’t just generating leads, it’s managing them efficiently so they actually turn into sales.
To do that, you need a centralised system where all your leads are stored in one place. This helps you respond instantly, follow up on time, and prioritise the most qualified leads. Managing this manually is not only time-consuming but also risky, as it increases the chances of missing or forgetting leads.
That’s why most businesses turn to CRMs to automatically import leads from various platforms, manage all your leads in one place, personalise communication, and stay on top of follow-ups
However, CRMs are often seen as complex, expensive tools made for large teams and require hours of training. Not anymore.
Looking for a lightweight yet powerful CRM that lets you manage your entire sales process from your phone without breaking the bank? Look no further than Privyr.
Privyr is a mobile-first CRM that integrates with all major lead sources, so your leads are automatically downloaded straight to your phone. Within a few taps, you can:
- Instantly reach out to new leads via WhatsApp, SMS, or other messaging apps
- Stay on top of subsequent follow-ups with smart automatic reminders
- Send personalised messages to build stronger relationships
- Even distribute leads to your team based on custom rules
Privyr’s AI capabilities allow it to detect leads in your email inbox and automatically download them to your phone, ensuring no lead goes missing, no matter how or where they’re generated.
Try Privyr for free today!
