The Majority of Small Businesses Embrace Artificial Intelligence

Small businesses are adopting artificial intelligence ("AI") at record rates but share growing concerns over state AI and data privacy regulations, finds a new Chamber Technology Engagement Center (C_TECH) report.

The Empowering Small Business: The Impact of Technology on U.S. Small Business report examines the pivotal role diverse technology platforms have in helping American small businesses operate and compete. It additionally provides the first-ever analysis of cryptocurrencies and state-by-state AI adoption trends.

This nationwide analysis of U.S. small businesses explores the various types and applications of technology used by small businesses, how these factors have changed over time, and the effects of these trends on these enterprises and the economy at-large.

This report focuses on the profound emergence of AI and other emerging technologies like cryptocurrency in the marketplace and the heightened interest in-and use of-the technology by small businesses.

• 65%
  of small businesses are worried about a patchwork of state AI laws

Past reports

• The Impact of Technology on U.S. Small Business (2024)
• Empowering Small Business: The Impact of Technology on U.S. Small Business (2023)

While small businesses continue to express concern over inflation, supply chains, and interest rates, the report reveals that technology provides opportunities for small businesses to save time and resources, while providing more tailored and targeted services to compete with larger companies.

C_TEC partnered with Teneo Research to conduct this nationwide survey of U.S. small businesses that explores how U.S. small businesses are adopting AI, how the current and future AI and data privacy regulatory landscape could impact small businesses' future adoption of technology, and how small businesses are thinking about cryptocurrencies.

• 58%
  of small businesses say they use generative AI
• 82%
  of small businesses using AI increased their workforce over the past year

The results demonstrate that various technology platforms have played a critical role in helping small businesses weather challenges and that small businesses that fully embrace technology outperform their peers and are more optimistic about the future.

"AI has been a game-changer for Henry's House of Coffee, allowing us to streamline tasks like product descriptions, SEO, and marketing emails. It truly helps us be more efficient and focus on what we do best: roasting great coffee."

Companies are also looking to add new emerging technologies like AI to their arsenal of digital tools to compete and expand their business.

The 2025 report found the following:

• Nearly all small businesses are using at least one technology platform, and more small businesses are embracing multiple types of technology.
• 58% of small businesses self-identified they use generative AI-up from 40% in 2024 and more than double compared to 2023 (23%).
• 82% of small businesses using AI increased their workforce over the past year despite concerns about AI and jobs.
• 84% of small businesses plan to increase their use of technology platforms.
• 96% of small business owners plan to adopt emerging technologies, including AI and cryptocurrencies.
• While more small business owners understand the benefits of AI, barriers to adoption persist.
• 77% of small businesses that use AI report that limits on the technology would negatively impact their growth, operations, and bottom line.
• Small business owners show growing optimism about the health of their business and the economy overall.
• High-tech adopters continue to see growth in sales and profits ahead of low-tech small businesses.
• 8-in-10 small business owners credit technology with helping them cope with inflation and supply chain disruption and improving access to capital.
• 7-in-10 small business owners indicate high interest in using cryptocurrency and stablecoins and part of their business in the future.

Dig into the full details and state-by-state breakdowns by downloading the full report.