WASHINGTON — A new study from the Small Business & Entrepreneurship Council finds that small businesses are increasing their use of digital tools, artificial intelligence, and e-commerce platforms to improve their operations and compete in the marketplace.
In short:
- 82% of small businesses use AI and are the most optimistic about its impact
- 66% report increased revenue from AI, of which 22% exceed 10%
- 93% plan to continue investing in AI and 62% will increase spending
- Digital platforms and pricing tools can help businesses expand their reach and compete
The Small Business Technology Usage Survey, conducted annually among more than 500 employers, shows that technology adoption has become central to business operations, with tools such as AI, digital marketing platforms, and automated pricing systems being widely used.
“Small business owners are adopting AI and digital tools at an impressive rate,” said Karen Kerrigan, president and CEO of the SBE Council.
The study found that 82% of small business employers use at least one AI tool, with the typical company using five AI tools across its operations. About 77% said they were optimistic about the impact of AI, while 9% said they were pessimistic.
Business owners report tangible benefits from implementing AI. Approximately 66% reported an increase in revenue, with 22% reporting an increase of 10% or more. Owners also reported saving a median of 5 hours per week, and employees reported saving 11.5 hours.
The survey found that 93% of respondents plan to continue investing in AI over the next year, and 62% expect their spending to increase.
Digital platforms are also expanding their market reach. Some 74% of respondents said online platforms have made it easier to compete with larger companies, 37% have added new sales channels in the past year and 47% plan to add more.
Common customer reach methods include social media, word of mouth, email marketing, online advertising, and content marketing.
Automated pricing tools are also gaining traction. Research shows that 35% of small businesses are already using algorithmic pricing, and 90% of users expect their usage to increase in the next year. Among users, 97% reported increased revenue and 94% said the tool made them more competitive.
Online marketplaces will continue to play an important role in your sales strategy. Approximately 30% of small businesses sell on Amazon, and these sellers report that approximately 20% of their revenue comes from the platform.
“AI and digital technologies are providing small and medium-sized businesses with powerful tools to innovate, grow and compete,” Kerrigan said.
The survey was conducted among 517 small and medium-sized employers from February 17 to 23, 2026, and had a margin of error of plus or minus 4.4 percentage points.
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