Discover why small fitness businesses have a unique AI advantage, enabling them to move faster, innovate smarter, and outperform larger competitors in the age of artificial intelligence.
Read more: Why Small Fitness Businesses Have an AI AdvantageArtificial intelligence is transforming nearly every industry, and fitness is no exception. From member retention and personalization to marketing automation and operational efficiency, AI is creating new opportunities for fitness operators to improve experiences while doing more with less.
But despite the excitement surrounding AI, many organizations are struggling to turn investments into measurable business results. In a recent conversation on the Wexer Podcast, Wexer CEO Paul Bowman sat down with Adam Halvorsen, CEO of NuForm to discuss the realities of AI adoption and why smaller fitness businesses may be better positioned to succeed than larger organizations.
The conversation revealed an important truth: having access to AI tools is not the same as creating business value. The operators who gain an AI advantage are not necessarily the ones spending the most money. They are the ones solving the right problems.
Keys To Gaining An AI Advantage
Focus on Business Outcomes, Not Technology
One of the biggest reasons AI projects fail is that organizations become fascinated by the technology before identifying the problem they are trying to solve.
With new tools launching almost daily, it is easy for fitness operators to feel pressure to “do something with AI.” The challenge is that technology alone rarely creates value. Value comes from improving a process, solving a member problem, reducing inefficiencies, or creating a better experience.
“Don’t start with technology. Start with the business problem.” ~ Adam Halvorsen, NuForm CEO~
This mindset is particularly important in fitness. Operators often ask which AI platform they should use or which new technology they should invest in. A better question is: What challenge is preventing our business from growing?
For some operators, that challenge may be declining retention. For others, it may be lead conversion, staff efficiency, or member engagement. Once the problem is clearly defined, AI becomes a tool that supports a solution rather than the solution itself.
This shift in thinking is often what separates successful AI initiatives from expensive experiments.
Understand Why Many AI Projects Fail
The excitement surrounding AI can make it feel like every organization is achieving transformational results. The reality is far different.
“MIT research shows 95% of AI initiatives are failing.” ~ Adam Halvorsen, NuForm CEO ~
That statistic may sound alarming, but it highlights an important lesson. Most organizations are not failing because the technology doesn’t work. They are failing because they are implementing AI without a clear strategy for how it will improve their business.
Many companies invest heavily in pilot programs that never become part of everyday operations. Others deploy tools that create interesting demonstrations but fail to improve member experiences, reduce costs, or drive revenue growth.
In the fitness industry, this often looks like implementing technology because competitors are doing it, rather than because it solves a meaningful problem. Operators may launch AI-powered tools without understanding how they fit into the member journey or support staff workflows.
The lesson is simple: successful AI adoption starts with business goals, not software features.
Use Your AI Advantage to Move Faster
One of the most powerful opportunities AI creates is the ability for smaller organizations to compete more effectively with larger competitors.
For years, large fitness corporations benefited from bigger technology budgets, larger development teams, and dedicated innovation departments. Smaller operators often struggled to keep pace. Today, that gap is shrinking.
AI-powered tools, automation platforms, and low-code solutions are reducing the time and cost required to test new ideas. Tasks that once required months of development can now be explored in days or weeks.
“It’s no question that the smaller players are going to eat the bigger guys’ lunches. The reason isn’t resources. It’s agility.” ~ Adam Halvorsen, NuForm CEO ~
Independent gyms, boutique studios, and regional operators can make decisions quickly. They can experiment, gather feedback, and adapt without navigating layers of approvals or competing priorities.
This AI advantage allows smaller businesses to innovate faster, respond more effectively to member needs, and implement improvements before larger competitors can react.
For fitness operators, speed has become a competitive advantage.
Avoid the Trap of Chasing Shiny Technology
Many organizations believe innovation means constantly pursuing the newest technology. In reality, innovation is about solving problems more effectively. Big companies get sucked into tech and don’t question if they are taking the right approach.
This challenge extends beyond large enterprises. Fitness operators of every size can fall into the trap of chasing trends without evaluating whether they create meaningful value.
A new AI tool may sound impressive, but if it doesn’t improve retention, engagement, efficiency, or revenue, it is unlikely to make a lasting impact.
The operators creating sustainable results are taking a more measured approach. They identify a challenge, evaluate possible solutions, test small initiatives, and scale what works. Rather than trying to transform everything at once, they focus on creating incremental improvements that compound over time.
This approach reduces risk while creating a stronger foundation for future innovation.
Look for Quick Wins Before Big Transformations
The best AI opportunities in fitness are often hiding in plain sight. Many operators assume AI must be used for large-scale transformations, but some of the biggest gains come from improving existing processes.
Member communication is one example. AI can help automate responses, personalize outreach, and ensure consistent follow-up without increasing staff workload. This improves responsiveness while allowing teams to focus on higher-value interactions.
Lead nurturing is another area where operators can gain an AI advantage. Prospective members often lose interest because communication is delayed or inconsistent. Automated workflows can help keep prospects engaged throughout the decision-making process.
Operational efficiency also presents significant opportunities. Administrative tasks, reporting, scheduling, and internal documentation can consume hours of staff time every week. AI can reduce much of that burden and free employees to focus on member experience.
These types of improvements may not make headlines, but they often generate the fastest and most measurable returns. The key is identifying where friction exists and using AI to remove it.
Create More Personalized Member Experiences
While efficiency gains are valuable, personalization may represent the biggest AI opportunity for fitness operators.
For years, fitness businesses have collected valuable member data but struggled to use it effectively. Attendance history, class participation, workout preferences, digital engagement, and behavioral trends all contain insights that can improve the member experience.
“Personal optimization is where the opportunity is.” ~ Adam Halvorsen, NuForm CEO ~
Members increasingly expect experiences tailored to their goals, preferences, and habits. AI makes it possible to deliver that personalization at scale.
Imagine a member receiving workout recommendations based on recent activity, reminders when attendance starts to decline, or content aligned with their specific fitness goals. These experiences create stronger engagement because they feel relevant and timely.
For operators, personalization can lead to improved retention, higher participation, and stronger member loyalty. Instead of treating every member the same, businesses can create experiences that feel individualized without requiring additional staff resources.
This is where AI shifts from being an operational tool to becoming a competitive advantage.
Use Data to Make Better Decisions
Many fitness operators already have access to significant amounts of data. The challenge is turning that information into action.
AI can help operators identify patterns that would otherwise be difficult to spot. Attendance trends, retention risks, engagement behaviors, and performance metrics can all become more actionable when analyzed effectively.
Rather than relying solely on instinct or assumptions, operators can use data to make more informed decisions about programming, staffing, marketing, and member engagement. This creates a more proactive approach to business management.
For example, if attendance data reveals that certain members are showing signs of disengagement, operators can intervene before cancellation occurs. If participation trends indicate growing demand for specific formats or services, resources can be allocated more effectively.
The goal is not simply collecting more data. The goal is using data to create better outcomes. When paired with a clear business objective, AI can help operators transform information into meaningful action.
Start Small and Build Momentum
One of the most common misconceptions about AI is that successful implementation requires a major transformation project. In reality, the most successful operators often begin with a single use case.
They identify one challenge, establish baseline metrics, implement a solution, and evaluate the results. Once they prove value, they expand into additional areas of the business.
This approach minimizes risk while creating opportunities to learn and improve. AI adoption does not need to be overwhelming. It simply needs to be intentional.
The operators gaining the greatest AI advantage are not trying to revolutionize their businesses overnight. They are taking a steady, strategic approach focused on measurable outcomes. Each success builds confidence, improves understanding, and creates momentum for future innovation.
The Future Belongs to Operators Who Take Action
Artificial intelligence will continue reshaping the fitness industry, but technology alone will not determine who succeeds. The winners will be the operators who remain focused on member needs, business outcomes, and continuous improvement.
They will use AI to enhance personalization, improve efficiency, strengthen retention, and create better experiences rather than simply adopting technology for technology’s sake.
“Platforms are changing how companies are approaching product development.” ~ Adam Halvorsen, NuForm CEO ~
The same is true for fitness operations. The opportunity is no longer reserved for enterprise organizations with massive budgets and large technology teams. Today’s AI landscape allows smaller operators to move faster, experiment more efficiently, and compete in ways that were previously impossible.
That is the real AI advantage.
Citations:
- The MIT Project Nanda report, “The GenAI Divide: State of AI in Business 2025”
- NuForm App & Platform Development Presentation
About NuForm
Founded in 2020 by digital technology veterans Adam Adam Halvorsen and Daniel Karlstrom, NuForm helps businesses design, build, and scale digital products that deliver measurable results. Drawing on more than 40 years of combined experience in software development, digital transformation, and IT consulting, the team has worked with organizations ranging from startups to some of the world’s largest enterprises. Rather than chasing technology trends for the sake of innovation, NuForm focuses on the intersection of customer needs, business value, and emerging technology. Operating across Europe and Asia, NuForm provides tailored support for organizations looking to develop web, mobile, and AI-powered solutions that drive growth, improve efficiency, and create lasting competitive advantage.