According to a new report from the U.S. Chamber of Commerce, small businesses are rapidly adopting artificial intelligence and other digital tools to stay competitive and drive growth. Nearly all small businesses now use at least one form of technology, and more than half reported using generative AI in 2025—more than double the share just two years earlier. Companies that adopt a wider range of technologies consistently see stronger growth in sales, profits, and workforce compared to their lower-tech peers.
Artificial intelligence is at the forefront of this shift. Small businesses are using AI to better understand and engage with customers, manage inventory, and improve efficiency. Among those that have adopted AI, most report higher sales, stronger profits, and workforce expansion over the past year. Many also rely on AI tools developed externally and are investing in training and upskilling their employees to maximize the benefits.
The benefits extend beyond AI. Cloud computing, digital payments, financial management platforms, and customer engagement tools all play a critical role in helping small businesses stay resilient. Owners credit technology with helping them cope with inflation and supply chain challenges, while many also say it has strengthened their ability to compete with larger companies.
Still, challenges remain. Small businesses cite the cost of tools, compliance concerns, and limited technical expertise as barriers to adoption. Many are also worried about the impact of rapidly changing AI and data privacy regulations, warning that restrictions could harm their growth, operations, and bottom line.
Looking ahead, optimism is strong. Nearly all small business owners plan to adopt emerging technologies such as AI and cryptocurrencies in the future, and a large majority expect technology to help them grow. For small businesses, continued investment in digital tools is not just an option—it is central to thriving in today’s competitive economy.