More than half of U.S. small businesses now use artificial intelligence in their business operations, double the amount who used the technology in 2023, according to a U.S. Chamber of Commerce report.
"The report reveals that technology provides opportunities for small businesses to save time and resources, while providing more tailored and targeted services to compete with larger companies," the report states.
Some states are more willing to use AI than others, the report found. The report did not have any information on why that might be, but said that those who have not implemented AI cite, "growing concerns around the quality of tools, cost of implementation, and potential legal or compliance issues associated with its use."
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States where AI is being used the most
These are the top 10 states where small businesses, defined as having fewer than 250 employees, are using at least one AI platform:
1. Maine 77%
2. (tie) Conecticut 72%
2. (tie) Nebraska 72%
4. Kansas 69%
5. Illinois 67%
6. Hawaii 66%
7. (tie) Louisiana 65%
7. (tie) Oregon 65%
7. (tie) Wyoming 65%
10. Arizona 64%
States with lowest percentage of AI use
These are the 10 states with the lowest percentage of AI usage in small businesses:
41. Wisconsin 49%
42. North Carolina 49%
43. (tie) North Dakota 47%
43. (tie) Minnesota 47%
43. (tie) Nevada 47%
46. Iowa 48%
47. Tennessee 46%
48. New Hampshire 44%
49. Vermont 41%
50. West Virginia 31%
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How AI is being used in small businesses
The U.S. Chamber of Commerce says the majority of small businesses use AI tools to better understand and engage with customers, and to manage inventory. Of the businesses that have adopted AI into their business operations, 44% use some sort of generative AI chatbot, 20% use AI coding tools, and 16% utilize image creation tools.
Only 8% of small businesses have decided to make their own AI tools, while 62% partially or fully utilize external tools like ChatGPT.
One reason for the uptick in AI, according to the report, is that small businesses are concerned their competitors are or plan to use the technology themselves. "This knowledge prompted 80% of small businesses to speed up implementation plans for using AI in their business," the report states.
Nearly every business surveyed said they use AI to teach their employees additional skills. Of that, 40% provide direct AI training to their employees and 41% provide AI tools for free and count on employees to train themselves.
A little more than one-third of small businesses have incorporated AI into their hiring process, including to scan for employees who have AI experience.
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