While Main Street is racing to incorporate artificial intelligence into their business models, most small businesses are still learning to walk before they can run.
Small business owners are already making up their minds about AI and are thinking not if, but when and how to integrate the technology. More than three-quarters of small business owners are already using AI to some extent, and more than 90% say AI is working, according to a Goldman Sachs survey of small business owners released Tuesday.
Efficiency and productivity gains are the main selling points of AI for small and medium-sized businesses, with nearly 7 in 10 expecting the technology to help increase revenue. But while many entrepreneurs are experimenting with AI, a large gap remains between enthusiasts and owners who can fully integrate AI.
According to a study by Goldman Sachs, only 14% of business owners have integrated AI across their core operations, meaning that while most small businesses have downloaded an app, few have read the manual.
The survey, conducted between January and February among 1,256 participants in Goldman Sachs’ Small Business Education Program, found that many entrepreneurs are excited about AI but unsure how to fully utilize it. Barriers include lack of technical expertise, difficulty navigating a crowded tool environment, and data privacy concerns. More than 70% of respondents said they would benefit from more training and implementation resources.
High risk, possibly high reward
Small businesses are rapidly gaining interest in AI tools, but are struggling to absorb them. According to the Chamber of Commerce’s 2025 report, 58% of small and medium-sized businesses are using generative AI in their operations, more than double the share in 2023. AI tools like ChatGPT, Claude, and Gemini have boosted social media to become the second most popular technology among small businesses after search engines.
Most small and medium-sized businesses are using AI for everything from copywriting and content creation to customer service automation, and some are even using the technology for complex tasks like coding and website design.
However, more profitable applications remain limited to a smaller share of technology-savvy companies. Less than a quarter of companies surveyed by the Chamber of Commerce are using AI to accomplish tasks likely to increase revenue, such as optimizing supply chains, identifying potential customers, and generating new insights about products and services. According to Goldman Sachs, mistrust of AI remains prevalent among some small and medium-sized businesses, and data privacy is a key concern for half of companies using AI.
Another hurdle may lie with the customers themselves. AI currently ranks as one of the least enjoyable topics in the United States, with a recent NBC poll showing that only 26% of Americans have a positive view of AI, while 46% have a negative view. Businesses may also be hesitant to implement AI in customer-facing operations given general technology fatigue. A Gartner study released this week found that half of consumers would prefer to move their business to a brand that doesn’t use AI, and many customers specifically dislike the authenticity of an AI-assisted shopping experience.
There is one bright spot. It’s employment. The wave of corporate layoffs and fears of AI-induced job losses sweeping white-collar industries doesn’t seem to have affected small businesses yet, with the chamber’s report finding that 82% of small businesses using AI were able to increase their workforce in the past year.
But just as American businesses are struggling to figure out the best way to implement this technology, small businesses may also remain hesitant. Generative AI pilots in large enterprises have largely stalled so far, failing to generate significant returns. Additionally, small businesses with fewer resources may be hesitant to take on thousands of dollars worth of risk on enterprise models and staff training.
A bill passed by the House last year called the AI for Main Street Act aims to allocate more resources to improve AI literacy among small businesses. But until larger companies prove that AI is worth the investment, small businesses may be reluctant to follow suit.
