growth strategies

Facing FOBO: What You Need to Know About the Fear of Becoming Obsolete

By: Niyati Budhiraja

Social and Community Engagement Specialist

August 14, 2025

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You’ve finally figured out how to schedule Instagram Reels, your website looks amazing, and your marketing strategy is starting to click. Then someone brings up artificial intelligence (AI) and suddenly, it feels like you’ve missed yet another memo.

This is FOBO in action: the Fear of Becoming Obsolete. It’s that voice in your head that says, “What if I am not using AI to its full potential?” For small and medium-sized businesses, that fear can feel very real. You're already juggling inventory, customers, social media, payroll - and now you’re supposed to be an AI expert too?

FOBO is normal. It’s not a sign that you’re failing, it’s a sign that you care about your business and want to stay competitive. Luckily, FOBO is manageable. With the right mindset and a few practical strategies, you can move from feeling uncertain to feeling empowered. Let's dive in.

What is FOBO

FOBO stands for Fear of Becoming Obsolete—a term that’s gained momentum as AI, automation and digital tools continue to evolve rapidly.

It’s that constant concern that your current tools, processes or even business model might not keep up. Maybe your competitors are using AI to improve customer experience. Maybe you’ve seen content or tasks being handled faster and more efficiently through automation. If so, you’re not alone. FOBO is becoming increasingly common, especially for business owners and teams trying to balance innovation with day-to-day demands. It’s not just about job loss or outdated tools. FOBO touches on something deeper: relevance, growth and the future of your business.

What is Fear of Becoming Obsolete

Why FOBO hits SMBs differently

Large companies often have big budgets for innovation teams, and external consultants to explore and implement AI. Small and medium businesses, on the other hand, are navigating these shifts while wearing multiple hats and working with limited resources.

This makes FOBO particularly challenging. You might not have the time or budget to experiment with every new tool, but you also don’t want to fall behind. The key is to focus on smart, scalable steps forward, not wholesale reinvention.

Here’s where FOBO typically shows up for small business owners and their teams:

Worry that competitors will automate and scale faster
Uncertainty about which AI tools are worth the investment
Doubts about whether existing skills or staff can keep up
Concern that your business model won’t survive future disruption

But while FOBO is understandable, it doesn’t have to lead to panic or stress. In fact, acknowledging it is the first step to future-proofing your business.

Practical ways to manage FOBO

1. Start small and strategic

Don’t let the AI hype train make you feel like you’re already too late. You’re not. Start small. Begin by identifying one or two areas where automation or AI can make a meaningful difference/help save time. For example, consider tools that help with scheduling, customer communication, or content creation. Many of the tools you already use are starting to integrate AI features—no overhaul required.

2. Remember what makes you human (and irreplaceable)

AI can draft emails and analyze data—but it can’t build relationships, tell your story, or connect with your community like you can. These are your superpowers. Use AI to support your strengths, not replace them.

3. Build confidence through learning

The idea of “keeping up” with AI can be overwhelming, but small steps matter. Set aside time each month to explore a new tool, read up on emerging trends, or watch a short video tutorial. There are many free and affordable resources online that help decode complex automation tools for you.

What is Fear of Becoming Obsolete

4. Engage your team

FOBO isn’t limited to business owners, your employees might be feeling it too. Open conversations about the future of work, emerging technologies, and skill development can reduce anxiety and inspire innovation. Your team may even have great ideas on how to use tech to improve workflows.

A mindset shift: From fear to future-ready

FOBO is a valid response to a fast-changing world, but it doesn’t have to hold you back. In a world where technology is advancing rapidly, staying relevant isn’t about racing to adopt every new tool. It’s about being intentional, human, and adaptable. You don’t need to do everything at once. What matters is staying open, asking questions, and taking action.

Change is part of running a business. While AI may be the latest shift, it’s not the first and won’t be the last. FOBO is simply a reminder to stay proactive, not passive. With the right mindset and a willingness to evolve, your business can not only keep up but also lead the way. FOBO doesn’t mean you’re falling behind. It means you’re ready to move forward.

Author Profile

Niyati Budhiraja

Author Profile

Niyati Budhiraja is a word nerd who turns tricky business talk into fun, simple and genuinely helpful content. She writes features on inspiring Canadian businesses, crafts easy-to-follow guides and shares smart tips to help small businesses feel confident and supported. When she’s not writing or dreaming up her next blog idea, you’ll likely find her hunting down the city’s best hot chocolate.