A growing number of small businesses are adopting artificial intelligence (AI) to reduce costs and improve efficiency, according to a recent survey by the U.S. Chamber of Commerce. The survey found that 58% of small businesses utilized AI in 2025, a significant increase from 23% in 2023.
Key Details
Many small business owners are turning to AI to navigate economic pressures, including rising tariffs and supply chain challenges. Brandon Lind, founder and CEO of Sparkles Homes, stated,
I know there's a lot of people worried about AI taking jobs, but, for us specifically, that'd be the only reason why the company is still in business.
His company has automated various processes and reduced marketing costs through AI.
However, the transition to AI is not without its challenges. Amy Wood, CEO of Flint Avenue Marketing, noted that while AI tools have been beneficial, they can also lead to unexpected issues. For instance, her AI assistant sent a poorly received email to a potential client, highlighting the risks of relying too heavily on automated systems. Wood commented,
If you just set it up and set it and forget it, it will create chaos.
Background
As small businesses learn to navigate these technologies, they are finding that AI can streamline operations but also requires careful management to avoid complications. The experience of these businesses reflects a broader trend of digital transformation in response to economic pressures. For further insights, see how AI is transforming small businesses and the growing trend of small businesses adopting AI.
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The adoption of AI by small businesses is likely to affect sectors such as technology and services, as increased efficiency may lead to lower operational costs and potentially higher profit margins. Investors will watch for upcoming earnings reports that may reflect the impact of AI on small business performance.