Surge in AI adoption among small and medium-sized businesses, 40% plan to add new jobs

A study by Goldman Sachs found that small business owners are rapidly adopting artificial intelligence to drive growth, with many saying they will lead to more employment opportunities this year.

According to new data from Goldman's 10,000 Small Business Boices Survey, about 68% of small business owners say they already use AI, with another 9% expected to start using it within next year.

This is a big jump from 51% of SME owners who used the technology to increase productivity and expand their capabilities two years ago.

Most small and medium-sized businesses using AI say they are strengthening their workforce rather than replacing them. Approximately 74% of small business owners who will use AI plans to grow their business in 2025. This is uncertain about 65% of people who do not use AI or adoption. Almost 40% of small and medium-sized businesses using the technology say they can create new jobs in 2025.

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This happens as public anxiety grows about whether AI will replace work. A 2025 Pew Research Center survey found that over 60% of Americans believe AI will bring fewer jobs in the next 20 years.

However, about 80% of small and medium-sized businesses that already employ the technology say they have increased their company's efficiency and productivity. Research shows that over 50% said they were given better data for decision-making, while an additional 49% said they helped provide new features.

Still, despite rapid recruitment, around 42% of small businesses say they still don't have access to the resources and expertise they need to successfully deploy it. Of these businesses, 60% cite a lack of expertise in applying AI to their businesses. However, 42% said they were not related to their business models, highlighting the gap between information and resources.

Those who adopted technology in their businesses are still facing challenges, with 48% saying they struggle to choose the right tool, 46% expressing concern about data privacy and security, and 41% cited a lack of technical expertise.

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Workday blogged earlier this year, highlighting that AI is becoming the norm for modern small businesses, and that AI is important to help small businesses manage their efficient workforce to maintain productive maintenance without overburdening.

“What's once seemed like luxury for large companies, like artificial intelligence (AI) and machine learning, today it's becoming a competitive standard for businesses of all sizes and industries,” Workday said in a blog in April.

For small and medium-sized businesses in particular, “artificial intelligence levelles large organizations and arenas, providing a new level of scalability and productivity that we once felt unattainable,” Workday added.

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Still, accounting giant E&Y said the transformation will result in massive structural changes and disruptions in existing business and operational models, highlighting the importance of regulations.

The company said successful organizations have a robust risk assessment and verification process. A clear framework for human monitoring of AI systems. Powerful stakeholder communication and trust building capabilities. A flexible operational model that can adapt to evolving AI regulations. A balanced automation strategy that prioritizes reliability in speed. and a comprehensive understanding of internal and external value chains, along with the AI systems that promote them.