A growing number of small businesses in the U.S. are embracing artificial intelligence as a vital part of their operations, with more than half actively exploring AI-powered tools, according to a recent survey by Reimagine Main Street and Public Private Strategies Institute in collaboration with PayPal.
The findings reveal a major shift in the mindset of entrepreneurs, as nearly 25% of small enterprises with annual revenues ranging from $25,000 to $5 million have already incorporated AI into their daily workflows.
“AI is no longer a distant concept for small business owners—it’s becoming a practical reality,” said Tammy Halevy, Executive Director of Reimagine Main Street. “Those who are exploring its potential want solutions that match how they run their businesses: secure, easy to use, and results-driven. When AI is accessible, it fuels not just individual business growth, but also stimulates broader economic progress.”
The survey highlights that marketing and customer engagement are key focus areas where small business owners see AI delivering the greatest impact. A substantial 84% of respondents are open to automating content creation, while 59% are prepared to use AI to handle customer service requests.
Beyond customer-facing roles, AI is also seen as a solution to financial challenges. Over 50% of participants identified cash flow forecasting as a major pain point that AI could address. Tools capable of predicting revenue trends were highly desirable, with 45% expressing strong interest in using such systems for better staffing, inventory, and marketing decisions. Meanwhile, 40% would readily adopt analytics tools to monitor real-time customer behavior and enable adaptive pricing strategies.
According to Rhett Buttle, President of the Public Private Strategies Institute, the findings mark a pivotal shift: “Small businesses are no longer viewing AI as a convenience. They’re realizing it’s a competitive necessity, especially as its early benefits become more apparent.”
However, the path to AI integration is not without barriers. Data privacy and security concerns were cited by 38% of respondents, while 37% pointed to limited time or resources. Additionally, 34% expressed uncertainty about whether AI tools would yield sufficient returns or have clear applications in their businesses.
Despite these concerns, optimism remains high. A full 66% of business owners believe adopting AI is essential to staying relevant in an increasingly tech-driven market. Competitive pressure is also playing a role, with 78% of current AI users and 69% of those still exploring acknowledging the need to keep pace with rivals.
As small businesses continue to evolve, AI is becoming more than just a tool—it’s a strategic investment shaping the future of entrepreneurship.
