Our highly experienced Kiplinger Letter Team will keep up with the latest developments and forecasts to understand trends surrounding AI and other new technologies and what is expected to happen in the future. (Get a free issue of your Kiplinger letter or subscription.) All the latest news, subscribe to get everything, but publish many (but not all) of your predictions online in a few days. This is the latest…
It usually takes some time for small businesses to adopt new technology. Compared to larger companies, small businesses have tight budgets and fewer employees deploy new technologies.
However, AI is defeating the traditional waiting approach.
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According to the 2025 Empowering Small Business report, a recent survey by the US Chamber of Commerce, 58% of small sizes already use artificial intelligence. This is up from 40% in 2024, bringing in more AI chatbots, AI coding tools and image creation tools.
Most small businesses, defined in the survey as companies with fewer than 250 employees, believe their competitors are using AI or plans immediately. There are indications that AI adoption is helping businesses improve sales, retain customers, save money, and strengthen their other businesses.
Using AI will certainly jump next year as more AI tools are fully integrated into popular business software for marketing, payroll, accounting, inventory, sales, talent and communication. Examples include QuickBooks, LinkedIn, Workday, and Grammarly. You can also tap on AI features built into search engines such as Google and Prperxity, as well as Facebook’s AI tools that make advertising easier on social media.
But that’s just the tip of the iceberg. Research reports that companies use AI to navigate tariffs, find low-cost suppliers, find process returns, prevent fraud and develop customer insights.
AI trials and errors
So, what stops some businesses from rushing? The biggest concerns include the quality, cost and legal issues of AI tools. That hesitation comes with risk as other companies cultivate first and potentially benefit.
Unlike large companies, most small businesses don’t build custom AI tools from scratch, instead using traditional software such as Openai’s ChatGPT or Microsoft Office’s Copilot as well as free options. And it’s more than just an office worker. Blue-collar workers are increasingly using AI capabilities in software designed for plumbers, electricians, painters and other merchants.
AI’s rapid adoption has spurred small businesses to increasingly search for AI skills when hiring, and current employees are helping AI training. According to the survey, “almost all (98%) AI users from small and medium-sized businesses work to mature their employees.”
Still, finding the best, most productive uses of AI is not easy. Straps for time and money? Use AI with software you already purchased or try out the free tools. Don’t be surprised if there is some lack of effort.
This forecast has been running since 1923 and is a brief weekly forecast for business and economic trends, as well as a brief weekly forecast for what to expect from Washington, first published in Kiplinger Letter, which helps you understand what is happening to make the most of your investment and money. Subscribe to the Kiplinger Letter.
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