Businesses of smaller scale are rapidly adopting artificial intelligence technology
In the dynamic landscape of modern business, artificial intelligence (AI) is no longer a distant concept, but a tool increasingly being embraced by small businesses. According to the 2025 Empowering Small Business Report by the U.S. Chamber of Commerce, a staggering 58% of small businesses, defined as those with fewer than 250 employees, are already making use of generative AI.
This surge in adoption is driven by a variety of factors. While concerns about quality, cost, and legal issues remain top priorities for businesses, the integration of AI into popular business software for marketing, payroll, accounting, inventory, sales, human resources, and communications is expected to further fuel this trend next year.
One of the key reasons behind this shift is the perceived advantage it offers over competitors. A majority of small businesses believe that their competitors are either already using AI or planning to do so soon. As a result, adopting AI is seen as a necessary step to stay competitive.
The adoption of AI is not limited to traditional office work. Small businesses are also leveraging AI in innovative ways, such as using AI chatbots, AI coding tools, and image creation tools. Even industries traditionally reliant on manual labour, like plumbing, electrical work, and painting, are seeing AI features being incorporated into their software.
This shift towards AI is also reflected in the hiring practices of small businesses. As AI adoption grows, there's an increasing emphasis on hiring employees with AI skills. To ensure their workforce remains competitive, 98% of small business AI users are working to upskill their employees.
However, the journey towards AI integration is not without its challenges. Some efforts in AI trial and error may fall short, but the benefits of AI adoption are undeniable. Small businesses are using AI to navigate tariffs, find lower-cost suppliers, and enhance their operations in various ways, from improving sales and customer retention to saving money and streamlining processes.
The Kiplinger Letter, a respected source for business and economic trends, predicts the continued growth of AI adoption in small businesses. AI is being used to develop customer insights, process returns, fulfill last-minute deliveries, prevent fraud, and even make advertising on social media easier, thanks to tools provided by companies like Facebook.
Despite the lack of specific names of German companies or organizations that have decided to use generative artificial intelligence in 2025, as per the U.S. Chamber of Commerce survey, the trend towards AI adoption among small businesses is undeniably on the rise. With the increased usage from 40% in 2024, it's clear that AI is becoming an integral part of the small business landscape.
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