AI Usage Among Small Businesses Jumps 41% in One Year, New Survey Finds

AI Usage Among Small Businesses Jumps 41% in One Year, New Survey Finds

A new survey reveals a leap in artificial intelligence (AI) adoption among small businesses in the U.S., with usage soaring from 39% in 2024 to 55% in 2025. That’s a 41% year-over-year increase, showing how rapidly AI is becoming a strategic pillar for small business success. Conducted by Thryv, the study spotlights how business owners are turning to AI to streamline operations, reduce expenses, and remain competitive in today’s challenging economic environment.

“Small businesses have moved beyond wondering if they should use AI—they’re determining how fast they can implement it,” said Grant Freeman, president of Thryv. “This embrace of AI underscores the value small businesses place on technology. AI is helping them do more with less, reach new customers, and operate with the agility of much larger businesses.”

The study, based on responses from 540 small business decision-makers in May 2025, shows that AI usage is gaining the most traction among businesses with 10 to 100 employees, jumping from 47% in 2024 to 68% in 2025. Younger entrepreneurs and companies in professional services and retail are among the top adopters, utilising AI tools to enhance customer experiences, automate marketing, and streamline back-office workflows.

AI Seen as a Business Necessity, Not Just a Trend

Most (80%) of AI users believe it’s critical for attracting new customers, while 78% say AI helps meet growing consumer expectations around responsiveness and personalisation. The perceived advantages of using AI now far outweigh previous hesitations; in fact, concerns about data privacy and security have dropped by 40% compared to last year, suggesting a growing comfort with AI technologies in small business settings.

Among current AI users, 63% report leveraging AI daily, mainly for data analysis (62%), generating content (55%), and automating customer interactions through tools like chatbots (46%). The impact is tangible: 58% of users say AI saves them over 20 hours per month, freeing up time to invest in growth areas such as customer acquisition, product development, and innovation.

Cost savings are equally substantial. Two-thirds of respondents report saving between $500 and $2,000 per month thanks to AI-driven efficiencies. These savings are commonly reinvested into marketing, upgrading technology stacks, and improving business infrastructure, turning AI into a growth enabler rather than just a cost-cutter.

AI Shifts the Workload but Doesn’t Eliminate Jobs—Yet

While 67% of small business owners agree that AI helps ease workloads for themselves and their teams, the long-term impact on staffing is still evolving. Nearly half (46%) of respondents say they may become less reliant on employees as AI capabilities expand. However, only 14% believe AI will directly replace human workers in the near term. Still, 42% remain open to the idea of using AI in place of staff under the right circumstances, signalling that automation’s effect on hiring may increase over time.

AI as a Shield Against Economic Uncertainty

In an unstable economic landscape, 41% of small business owners say AI will help them navigate future challenges, with another 40% saying it “might.” Optimism runs highest among service-based and white-collar businesses, over 70% of which see AI as a strategic advantage that can help them thrive despite market fluctuations.

As AI tools become more accessible and user-friendly, it’s clear that small businesses are no longer asking whether they should use AI, but how soon they can use it more effectively.