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Just because a company might only have a handful of employees doesn’t mean the next one can’t be an AI.
A pair of recent surveys showed that small businesses are starting to use generative AI in their operations, though maybe not at the same rates as larger counterparts.
A Census Bureau analysis found that very small companies—those with only one to four employees—had the second highest uptick in AI usage since September 2023, behind only corporations of 250 or more workers. The portion of those small businesses adopting AI jumped from 4.6% to 5.8%, and large corporations saw an acceleration from 5.2% to 7.8% in the same period.
Some recent data from American Express attempted to offer more insight into who these small business owners are. The payments company’s own survey showed that millennial and Gen Z small business owners were using AI at a much higher rate than those of Gen X and boomer age (68% versus 45%).
These small business AI adopters may also be more intent on growing in the new year; they were more likely than non-AI businesses to list “upgrading their technology solutions,” boosting market share, and “introducing a new product or service” as goals in the next year. Half of businesses utilizing AI tools expected to expand their headcount, compared with 36% of businesses that have so far eschewed AI.
A previous report from AmEx last year found that small businesses used AI to stretch a dollar during the holiday season when it comes to tasks like social media posts, marketing campaigns, and seasonal hiring.
The data comes as small businesses also reported to AmEx that they expected a period of stability in the new year after an era of economic uncertainty.
“For [small businesses], 2025 will be defined by innovation, leaning deeper into artificial intelligence and social media as essential tools for reaching customers and future-proofing their businesses,” Anna Marrs, group president of global commercial services at American Express, said in the report.