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November 13, 2024 by Molly Weybright

AI for Small Businesses: Top Trends, Data, and Insights

Artificial Intelligence (AI) is no longer just a buzzword—it's a reality transforming businesses of all sizes. At Service Direct, we wanted to understand how small businesses are tackling AI, including usage rates, challenges, and results, which we just published in our 2025 small business AI report

In this blog post, we'll highlight the most eye-opening statistics from the report and delve into what they mean for the future of small businesses. Whether you're an early adopter or still weighing the possibilities, understanding these trends is crucial. 

Join us as we explore how AI is not just leveling the playing field but also offering SMBs unprecedented opportunities for growth, efficiency, and innovation.

1. 77% of small businesses are using aI Regularly

77% of small businesses report using AI in their day-to-day functions

It’s fascinating that an overwhelming majority of small businesses are already using AI. This underscores just how accessible and impactful AI technology has become for companies of all sizes. 

This widespread adoption among small businesses indicates a significant shift, as these companies recognize AI's value. The fact that such a large percentage of SMBs have integrated AI highlights how essential these tools have become to remaining competitive in an increasingly digital market.

2. A third of small businesses use at least 7 AI Products in an average week

32% of small businesses are using 7 or more AI tools in an average week

The fact that 32% of small businesses use seven or more AI products in an average week is a compelling indicator of just how integrated AI has become in day-to-day operations. This level of usage suggests that small businesses aren’t just experimenting with AI—they’re fully embracing it.

3. 90% of small businesses are looking to add more AI tools in the future

90% of SMBs that currently use AI are looking to add more tools.

The fact that an overwhelming supermajority of SMBs plan to add more AI tools underscores these companies' enthusiasm and confidence in AI’s potential. This commitment to expanding AI usage reveals that SMBs aren’t just satisfied with initial results—they see ongoing opportunities to enhance their operations further. 

This forward-looking trend is fascinating because it signals a future where AI capabilities are not limited to large corporations. Instead, SMBs are making AI a core part of their growth strategy, positioning themselves as more resilient and competitive in a fast-evolving digital landscape.

4. Lack of knowledge prevents a quarter of small businesses from adopting AI Tools

25% of non-AI using businesses state lack of knowledge as the main reason they are holding back on tool adoption

The fact that 25% of non-AI users report that lack of knowledge is a key barrier highlights a significant opportunity for education and outreach. Many of these businesses may be unaware of the accessible, user-friendly AI tools now available. 

Unlike in the past, when AI implementation required extensive technical expertise, today’s AI solutions are designed to be approachable. Addressing this lack of awareness could unlock opportunities for small businesses, enabling them to benefit from AI tools without the intimidation of high technical barriers.

5. Nearly 90% of businesses that use AI report positive results across the board

Across the board, nearly 90% of SMBs report positive results from AI implementation

SMBs report overwhelmingly positive feedback, demonstrating that AI isn’t just a theoretical advantage but a practical tool driving real results. For businesses implementing AI, these outcomes highlight the technology’s ability to optimize operations. 

This high success rate is particularly noteworthy because it shows that, when deployed thoughtfully, AI can yield substantial benefits for SMBs. The widespread satisfaction among AI users signals growing confidence in the technology.

6. Sole proprietors are significantly less likely to adopt AI than businesses with employees

47% of sole proprietors use AI versus 85% of small businesses with employees. 

Sole proprietors are almost half as likely to adopt AI as businesses with employees, revealing solo business owners' unique challenges and perspectives. Sole proprietors often handle all aspects of their business independently and may view AI as a complex or costly addition rather than a necessary tool. 

Limited resource constraints make it challenging for sole proprietors to explore new technologies. This trend highlights an untapped potential for AI adoption among sole proprietors, as the right tools could help them improve operations without adding employees.

7. Over half of SMBs report spending more than $10,000 annually on AI tools 

51% of SMBs report spending more than $10,000 annually on AI products and services

It’s striking that over half of small businesses report spending more than $10,000 annually on AI tools and services, indicating a strong commitment to integrating AI despite budget constraints often associated with smaller companies. 

High spending reflects a shift in perception—AI is now seen as an accessible tool that can deliver substantial returns for smaller enterprises. By committing high levels of resources, SMBs position themselves to leverage AI’s full potential.

8. 61% of small businesses report feeling positive about AI in the workplace

61% of small businesses feel positive about AI in the workplace

This widespread optimism signals that small and medium-sized businesses are beginning to see AI as an ally in their operations. This positive outlook is fascinating because it suggests that, rather than fearing automation or job displacement, many SMBs view AI as a tool to empower their teams and enhance productivity. 

Such a favorable attitude toward AI could accelerate adoption rates, as businesses with a positive outlook are more likely to invest in AI solutions. This perception shift marks an important step toward a future where AI is seen as an essential part of the workplace toolkit for SMBs.

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