SMALL BUSINESS AND AI SURVEY

AI on Main Street:
The State of AI Adoption Among Small Businesses

Over 75% of small businesses are either already actively using or exploring AI implementation,  suggesting that the adoption of artificial intelligence (AI) among small businesses has reached a tipping point—evolving from a question of “if” to “when.”

SURVEY INSIGHTS

"Small business owners are already putting AI to work. One in four are using it today, and more than half are exploring the possibilities of AI for their businesses.

"But these ‘Explorers’ want to see how AI advances their businesses. They need tools that are simple to use, secure, and built for how they actually run their businesses.

"And it matters — because when small businesses adopt AI in ways that work for them, the benefits will also accrue to local economies, supply chains, and the broader economy."

— Tammy Halevy, Executive Director,

Reimagine Main Street

“When it’s accessible, understandable, and built for real-life use, AI can be a great equalizer for small businesses.”

—   Michelle Gill,
General Manager, Small Business and Financial Services, PayPal

“As businesses experience tangible benefits from initial applications, they are seeking increasingly sophisticated solutions that can transform their decision-making processes and competitive positioning. What we’re seeing is a strategic shift where small businesses recognize that AI isn’t just a nice-to-have tool for saving time—it's becoming essential for maintaining competitiveness in today’s market.”

—   Rhett Buttle, 
President, Public Private Strategies Institute

AI INSIGHTS IN THE NEWS

Inc. Magazine: Most Small Businesses Are Still Just Testing AI. They Could Be Leaving Gains on the Table

July 10, 2025
 Inc. Magazine: Most Small Businesses Are Still Just Testing AI. They Could Be Leaving Gains on the Table A new study finds 51 percent of modest-sized companies are still tentative about using AI to automate work tasks. While many large corporations have energetically pursued increased use of artificial intelligence (AI), data indicates small businesses have been slower and more tentative in adopting the tech. But a recent study of how modest-sized companies have introduced AI offers some insights on how still-hesitant owners can test and integrate those apps most effectively into their workplaces. The broad findings in the research by the Public Private Strategies Institute’s Reimagine Main Street project largely jibes with earlier polls on AI use by small businesses. Among the study’s roughly 1,000 participating companies with annual revenues of between $25,000 and $5 million, just over half described themselves as still testing and exploring the tech. About a quarter of responding owners considered their businesses current users of AI apps, and 24 percent said they neither have nor plan to introduce the tech any time soon. That roughly corresponds with results of previous surveys on the topic. Read the full story at Inc. Magazine.

CNBC: Small business AI use is lagging, but one firm is channeling Sherlock Holmes and knocking out 'grunt work'

June 24, 2025
CNBC: Small business AI use is lagging, but one firm is channeling Sherlock Holmes and knocking out 'grunt work' Chris Schwegmann is getting creative with how artificial intelligence is being used in law. "We still have the need for the independent legal judgment of our associate lawyers and our partners — it hasn't replaced them, it just augments their thinking," Schwegmann said. "It makes them more creative and frees their time to do what lawyers do best, which is strategic thought and creative problem solving." The NFIB data echoes a recent survey from Reimagine Main Street, a project of Public Private Strategies Institute in partnership with PayPal. Reimagine surveyed nearly 1,000 small businesses with annual revenue between $25,000 and $50,000 and also found that a quarter had already started integrating AI into daily workflows. Read the full story at CNBC .

PayPal Newsroom: Small Businesses Are Ready for AI That Acts, Not Just Assists, New Report Finds

June 18, 2025
Jun 18, 2025 PayPal Newsroom: Small Businesses Are Ready for AI That Acts, Not Just Assists, New Report Finds A new national survey of small business owners reveals that the era of artificial intelligence is no longer a far-off concept. According to a new survey by Reimagine Main Street , a project of the Public Private Strategies Institute, in partnership with PayPal 76% of small businesses are either actively using or exploring AI tools, signaling a sector on the brink of a technological transformation. The report, which surveyed nearly 1,000 small business owners and included 20 in-depth interviews, shows that AI adoption is happening now, driven by a desire for efficiency and a mounting pressure to stay competitive. But while many have dipped their toes into generative AI, the findings reveal a deeper desire for a new class of intelligent tools. Read the full story at PayPal Newsroom .

Merca 2.0: How are small businesses using generative AI?

June 11, 2025
June 11, 2025  Merca 2.0: How are small businesses using generative AI? A recent study reveals that Artificial Intelligence has become a practical tool in the daily life of small businesses Generative Artificial Intelligence (Generative AI) is no longer a futuristic concept bordering on science fiction. Gradually, it has become a practical tool in the daily operations of small businesses. According to a national survey conducted by Reimagine Main Street in collaboration with PayPal , the adoption of this technology has reached a tipping point. What was once an optional decision is now almost a strategic necessity. More than 50% of small businesses are exploring the use of generative AI tools, while 25% have already integrated them into their daily operations. This marks a paradigm shift: from asking “should I use AI?” to “how and when should I integrate it into my business?” Read the full story at Merca 2.0 .

Thank You to Our Partners

A bunch of logos on a white background including ace

With Support From