Empowering Small Business: The Impact of Technology on U.S. Small Business

Key Findings AI is a job growth engine for small businesses: 47% say AI is creating jobs today, while 6% say it is enabling headcount reductions. U.S. small businesses run on technology: Nearly 100% of small businesses report using at least 1 technology platform at work. High-rate technology adoption is accelerating: 41% now use 6+ platforms, up 9 points from 2025 and nearly 3 times the 2022 level. 2/3 of small businesses now use AI. (66%), up 8 points from 2025 and nearly 3 times the share using it in 2023 (23%). Small businesses using AI outpace non-AI enabled businesses and are at least 7 points more likely to report sales, profit, and workforce growth. 95% of small businesses using AI are working to upskill employees, including 47% providing on-the-job training. 84% plan to increase their use of technology over the next 2–3 years, including businesses at every current adoption level. AI has become operationally important: 78% of users say limiting access would slow growth, and 75% say it would hurt their bottom line. Six in ten small businesses worry about increased litigation and compliance costs from a patchwork of state privacy and AI laws. Technology intensity continues to correlate with stronger business performance: Businesses using 2+ platforms are roughly 10 points more likely than low-tech businesses to report growth in sales, profits, and employment. Inflation continues to be the top small business challenge, cited by 32% and up 9 points from 2025.