A new report from the U.S. Chamber of Commerce’s Technology Engagement Center highlights the increasing reliance on technology by small businesses, particularly the growing adoption of artificial intelligence (AI). The “Empowering Small Business: The Impact of Technology on U.S. Small Business” report reveals that 40% of small businesses now use generative AI tools, nearly doubling from the previous year. AI, alongside other digital platforms, is credited with improving efficiency and customer engagement, but regulatory uncertainties are causing concern among business owners.
The report emphasizes that nearly all small businesses (99%) use some form of technology platform, with high adoption rates across categories such as social media, digital payments, and marketing. Small business owners who have integrated multiple platforms report better performance metrics, including sales and profit growth. Companies that are categorized as “high-tech adopters” were more likely to have grown in the past year compared to those using fewer tools.
AI’s rapid rise is seen primarily in customer-facing applications. According to the survey, more than half of small businesses using AI leverage it for marketing and customer insights, reflecting a broader industry trend where digital tools are reshaping how brands communicate with consumers. With AI’s capacity to personalize marketing efforts, small businesses are finding ways to compete more effectively with larger firms.
85% of small business owners are confident that technology will fuel future growth.
While this technological shift shows promise, the regulatory landscape presents challenges. Eighty-six percent of small business owners expressed concern that proposed regulations could hinder growth, particularly around the use of data and AI. New rules that mandate risk assessments for AI tools and transparency in customer interactions could increase compliance costs, particularly for businesses that lack in-house legal or technical expertise. As the report notes, only 30% of small businesses feel well-prepared to comply with potential AI regulations, indicating a significant gap between adoption and readiness.
This tension between innovation and regulation echoes a broader conversation in the tech industry, where lawmakers are balancing the need for privacy and consumer protection with fostering innovation. Small businesses, often more agile than their larger counterparts, stand to benefit from the AI revolution, but regulatory hurdles could slow down this momentum.
Despite these challenges, small business optimism remains high. The report found that 85% of small business owners are confident that technology will fuel future growth. For marketing professionals, this continued digital transformation underscores the importance of keeping pace with new tools like AI, which offer the ability to refine campaigns and engage customers more effectively.
In light of inflationary pressures, businesses have increasingly turned to technology not only to improve efficiency but to avoid passing costs onto customers. Almost 80% of small business owners reported that technology helped them manage rising expenses without hiking prices, further proving its value in an unpredictable economic environment.
Looking ahead, AI and other emerging technologies like metaverse platforms and cryptocurrency are expected to become even more integrated into small business operations. Yet, the pace of adoption may depend heavily on how regulatory frameworks evolve. As small business owners navigate this uncertain landscape, they are calling for clearer guidelines that protect consumers without stifling innovation. For now, marketing professionals should take note of the growing importance of AI in shaping consumer engagement strategies, while staying informed about potential legal shifts that could affect how they operate in this space.