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Small Business Owners Accelerate Adoption and Investments in Digital Solutions, Reject “Doom and Gloom” Narrative on AI
Washington, D.C. — A new national survey of small business employers released today by the Small Business & Entrepreneurship Council (SBE Council) finds that small firms continue their rapid adoption and investment in digital tools, artificial intelligence (AI), and e-commerce platforms to improve productivity, grow revenue, innovate, and compete more effectively in today’s economy.
The annual “Small Business Technology Use Survey” of more than 500 small business owners reveals that technology adoption has moved well beyond experimentation, with AI, digital marketing platforms, e-commerce marketplaces, and automated pricing tools becoming core components of modern small business operations. Rather than fearing technological disruption – only 9% self-identify as “doom and gloomers” when it comes to AI – small business owners convey confidence and optimism through their ongoing investments connected to tangible returns and the effectiveness of digital and AI tools.
“Small business owners are embracing AI and digital tools at remarkable rates,” said Karen Kerrigan, President and CEO of the SBE Council. “These technologies are helping entrepreneurs save time and money, reach new customers, innovate faster, and compete more effectively — especially against larger firms and in a fast-moving environment.”
According to Kerrigan, small business owners now look to technology solutions first and turn to peers in their industry, their teams, industry associations, and online educational platforms to help them understand whether certain tools make sense from an investment perspective. Moreover, 90% say they are confident in their ability to adopt digital tools and AI.
“America’s entrepreneurs are optimistic and forward-looking,” Kerrigan observed. “AI and digital technologies are giving small businesses powerful tools to innovate, grow, and compete in ways that were unimaginable just a few years ago.”
AI Delivering Measurable Business Benefits
The survey finds that 82% of small business employers have adopted at least one AI tool, and the typical small business uses five different AI tools across operations. Small business owners do not fear AI or technological disruption – only 9% of small business owners put themselves in the “doom and gloom” camp when it comes to the impact of AI on business and the economy – 77% express optimism about the use and adoption of AI and its impact on business and the economy.
Small business owners report that these tools are delivering measurable gains:
● Two-thirds (66%) report revenue increases linked to AI – 22% report revenue gains exceeding 10%
● Owners save a median 5 hours per week of their time
● Businesses save a median 11.5 employee hours per week
● Based on SBE Council estimates, the total in owner/employee time (16.5 hours per week) amounts to yearly savings for small businesses of $243.6 billion overall.
● 93% plan to keep making investments in AI over the next year with 62% reporting they will increase those investments. The median annual AI spend is $2,200.
Overall, 81% of small businesses say AI is important to their competitiveness and growth, and more than half expect AI to have a major or transformative impact on their industries in the coming years.
Small business owners overwhelmingly view AI as a tool that augments workers rather than replaces them, with 52% saying AI complements employees, while only 8% say it primarily replaces workers. In the coming year, 40% of AI small business users say they plan to increase hiring.
Digital Platforms Expanding Market Opportunities via Multiple Channels
Digital tools and online platforms are helping small businesses expand market reach and compete more effectively. Small businesses are multi-channel sellers.
● 74% say digital platforms make it easier to compete with larger firms
● In terms of advertising, the five top ways small businesses reach customers are social media marketing, word-of-mouth, e-mail marketing, online ads, and content marketing (43% report they will increase digital ad spend this year)
● The business’ website is the largest revenue source – other digital and e-commerce channels account for a median 20% of small business sales
● 37% added new sales channels in the past year
● 47% plan to add additional channels in the next year
● 82% report satisfaction with the current online/offline channel mix
Top social media and technology platforms for revenue generation and brand building include:
● Facebook (62%)
● Instagram (43%)
● YouTube (36%)
● LinkedIn (29%)
● TikTok (26%) – 91% of users say the platform is important to their viability
● Amazon (24%) – 98% of sellers report the platform’s pricing structure allows them to compete
Automated Pricing Tools Gaining Rapid Adoption
The use of algorithmic pricing tools among small businesses is becoming more widespread.
“Automated pricing technologies are a competitive game-changer for small businesses,” Kerrigan said. “Small businesses are using these tools to monitor the market and competitors, optimize promotions, and adjust prices in real time. The tool is leveling the playing field for small businesses and allowing them to more effectively compete in the marketplace.”
● Six in ten small businesses either use or plan to adopt automated pricing tools
● 35% already use algorithmic pricing, 90% indicate they are likely to increase usage in the next 12 months
Among businesses using these technologies, the results are striking:
● 97% report revenue gains
● 31% report revenue increases exceeding 10%
● 94% say the tools improve their competitive position
Digital Marketplaces Supporting Small Sellers
Online marketplaces are also playing an increasingly positive role in the small business digital economy. The survey finds, for example, that 30% of small businesses sell on Amazon, and among those sellers:
● The median share of sales from Amazon is about 20%
● Nearly two-thirds (66%) report margins are higher than other channels, and 23% report margines are about the same as other channels
● 98% say Amazon’s pricing structure is fair and allows them to compete
● 94% say Amazon provides significant platform support for small business sellers
Most Amazon sellers use multiple sales channels, including their own websites, social media platforms, other e-commerce platforms, their own brick-and-mortar stores and other in-person venues.
There are many more findings in the survey, which can be accessed here.
Summarizing the survey’s findings, Kerrigan concludes:
“Artificial intelligence and digital platforms are powerful equalizers. Entrepreneurs have accessible and affordable tools that allow them to analyze markets, automate operations, reach customers globally, innovate more successfully, and compete with much larger firms. What once required significant resources is now accessible to the smallest startup and every Main Street business. That transformation is one of the most important developments shaping the future of entrepreneurship.”
About the Survey
SBE Council’s “Small Business Technology Use Survey” of 517 small business employers (2-99 employees) was conducted online by TechnoMetrica from February 17-23, 2026, with a credibility interval of -+/- 4.4 percentage points.
CONTACT:
KAREN KERRIGAN, kkerrigan@sbecouncil.org
SBE Council is a nonpartisan advocacy, research and education organization dedicated to protecting small business and promoting entrepreneurship. For more than 30 years, SBE Council has advanced a range of private sector and public policy initiatives to strengthen the ecosystem for strong startup activity and small business growth.
Visit www.sbecouncil.org for additional information. X: @SBECouncil
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