Small Businesses Have Rapidly Adopted AI Tools

New report shows widespread AI integration among small firms despite mounting concerns over fragmented state regulations.

Updated on Oct. 2, 2026 in Artificial Intelligence

Isometric editorial illustration of wooden shipping crates stacked next to a steel beam, representing structural business growth. — A U.S. Chamber of Commerce report indicates that 66 percent of small businesses now use artificial intelligence tools to drive growth and efficiency. AI Illustration. Upload story photo >

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Should states impose stricter regulations on how small businesses use artificial intelligence and new technology?

The U.S. Chamber of Commerce reported that 66 percent of small businesses in the United States now use artificial intelligence. This represents a significant adoption increase from 23 percent in 2023 and 58 percent in 2025.

Why it matters

Small business adoption of AI has accelerated as owners seek to boost profits and workforce growth while competing with larger enterprises. However, uncertainty regarding state-level compliance costs now threatens this trajectory.

Current data indicates 66 percent of small businesses use AI tools like predictive analytics and chatbots, up from 58 percent in 2025. While 47 percent of these firms report net job gains, 6 percent have recorded headcount reductions.

The players

U.S. Chamber of Commerce

The largest lobbying group in the United States representing business interests through policy advocacy and economic research.

The details

Small businesses are utilizing a mix of generative AI chatbots, predictive data analytics, and virtual assistants to streamline supply chain management and sales operations. The most prevalent application is employee training and upskilling, currently utilized by 95 percent of employers who integrate AI products. These tools are often part of a broader digital stack, with 41 percent of businesses reporting the regular use of at least six distinct technology platforms.

2023: 23 percent of small businesses used AI.
2025: 58 percent of small businesses used AI.
October 2, 2026: The U.S. Chamber of Commerce released the Empowering Small Business report.
Next 2-3 years: 84 percent of owners plan to increase their technology usage.

The Tech Race

This report series tracks the adoption of digital tools compared to historical benchmarks set in 2023 and 2025. It highlights a widening gap between high-tech small businesses and those lagging behind, which now face increasing pressure to modernize their operations.

Small business owners should expect increasing pressure to integrate multiple platforms, as 84 percent of peers plan to expand their tech use over the next few years. Those concerned about litigation may need to monitor emerging state-level compliance mandates that threaten to create disparate regulatory burdens.

The takeaway

Small businesses have firmly integrated AI into their growth strategies, viewing it as a critical tool for competitive survival. Watch for shifting legislative outcomes, as 78 percent of owners warn that restricting AI access will negatively impact their bottom line.