What's new and what's next: How small business owners are using AI

Axios

11-03-2025

AI is no longer just for large corporations with dedicated tech teams.
Nearly 89% of small business owners indicated that someone at their business currently uses AI tools, according to a new report from the Initiative for a Competitive Inner City (ICIC), supported by Intuit.
The report is based on a survey of 3,752 U.S.-based small business owners as well as five focus groups.
Why it's important: AI has the potential to make small businesses competitive with much larger firms and level the playing field. The ways small businesses adopt AI could broadly affect work and commerce — and the U.S. economy as a whole.
Okay, but: While adoption is high, many business owners face barriers to AI implementation. Many small business owners said a lack of knowledge of tools is keeping them from adopting AI.
Some also cited its potential complexity as a challenge, along with the perception that AI technology is changing too quickly.
A closer look at this new data from Intuit and ICIC reveals how small businesses are using AI today, the challenges they face and what's needed to ensure they can maximize its benefits.
🤖 How small businesses are using AI
Small businesses are largely using AI tools to speed up or automate routine tasks.
The top five AI uses reported by small business owners include…
Data analysis (26.8%).
Writing marketing materials (25.2%).
Drafting emails and other communication (23.4%).
Drafting blog posts or newsletters (22.7%).
Summarizing web content (22.7%).
The impact: AI is helping improve employee productivity and job satisfaction.
62% of business owners whose businesses had already adopted AI reported positive changes in employee productivity since implementation.
63% of employer businesses that already use AI reported seeing positive changes in job satisfaction.
Looking ahead: The study's focus group participants expressed strong interest in expanding their use of AI into more complex and strategic areas, including data analysis, financial forecasting and customer interfacing.
🤖 Barriers to small businesses adopting AI
Despite the widespread adoption of AI amongst small businesses, barriers to adopting and understanding the technology still exist — particularly for those who have yet to implement AI tools.
Most business owners report a medium or high level of comfort using AI for their businesses. However, there are gender and racial differences.
Business owners who are men report higher levels of comfort with AI than those who are women, nonbinary or gender-nonconforming.
Minority business owners report low comfort with AI tools at about two times the rate of non-minority business owners.
Some of the main reasons small business owners said they haven't implemented AI tools include:
"I don't know enough about new digital tools." (71.9%)
"They are not useful for our business." (33.6%)
"I don't know how to keep sensitive data safe when using AI." (30.4%)
"They are too time-consuming to implement." (26.2%)
Plus, plus, plus: The three most cited barriers to understanding AI are the perceptions that:
AI is changing too quickly.
The cost of AI tools is too high.
The information involved in AI topics is too complex.
Owners of the smallest business also cited a lack of time as a barrier to understanding AI.
🤖 How small business owners are learning about AI
AI is evolving quickly — so how are small business owners learning about the technology and keeping up?
The most common resources small business owners said they have used to learn about AI include podcasts or videos, online forums, and social media. Trial and error (aka learning by doing) was also a common approach.
Resources small business owners would like to see more of included online courses/training, online tutorials and in-person courses/training.
Participants in one focus group unanimously agreed that in-person instruction was valuable. One person noted that online resources are great, but having a conversation with a topic expert is important for a deeper understanding of how AI can help them.
Their goals: Small business owners said they'd like to learn more about:
"How it can help my business grow and become more profitable." (42%)
"Data privacy and security." (36.6%)
"How to get the best results (e.g., keywords, how to write prompts)" (35.2%)
🤖 The research takeaways and what's ahead
The research findings from ICIC indicate there's a pressing need for small business educational programming around responsible AI use.
With this insight, businesses, educators and policymakers can address common barriers and ensure AI adoption is both effective and inclusive.
Data-driven recommendations include:
1️⃣ Educational programs should be flexible and reflect the diversity in needs and preferred training styles of small businesses.
2️⃣ Small business owners should be aware of the advantages of including employees in decision making around new technology for effective AI adoption.
3️⃣ Transparency about the benefits and risks of AI use will help small business owners understand how to use AI responsibly.
Next steps: Armed with these new insights, Intuit and ICIC are partnering for the "Intuit More with AI Tour" in 2025. The tour will host six events across the U.S.
What to expect: Free half-day events will provide local small and mid-market businesses with actionable insights and hands-on experience on a range of small business AI tools from Intuit and other companies.
The curriculum will include practical applications, benefits and responsible implementation strategies.
📊 Dig deeper into the research.