AI in Action: Key Insights from Our Latest Report on Small Business Efficiency

At Thryv, we’ve seen firsthand how AI helps small businesses make smart, data-driven decisions and meet rising customer expectations.

That’s why we’re thrilled to share the findings from our latest AI and Small Business Adoption survey — a revealing look at how artificial intelligence is transforming the way small businesses operate in 2025. Our survey of 500+ small business decision makers shows that AI adoption among small businesses has surged 40% in just one year. Now, more than half (55%) are using AI.  Even more impressive, companies with 10 to 100 employees are leading the charge, with AI usage climbing to 68% in 2025.

What’s driving this rapid adoption? It’s clear that AI is no longer a futuristic concept. It’s a critical tool for saving time, reducing costs, and driving growth. In fact, 63% of AI users utilize it daily for key activities such as data analysis, content creation, and customer engagement. This technology is helping businesses reclaim significant time that they are redirecting to innovation and expansion.

As more than 80% of small business owners agree, AI isn’t just an advantage—it’s essential for reaching new customers and thriving in today’s dynamic economic environment.

In this post, I’ll dive deeper into these insights and explore what they mean for the future of small business success.

Key Insights: AI Simplifies and Drives Growth

• AI adoption surged year over year: Usage jumped from 39% in 2024 to 55% in 2025 nationally among small businesses.
• Strongest adoption among midsize and small businesses: Companies with 10 to 100 employees increased AI usage from 47% to 68%.
• Younger owners, professional services leaders, and retail leaders are driving the adoption of AI. They use AI in marketing, customer service, and operations.
• AI seen as a complement to employees: Only 14% think AI could replace employees now, but 42% are open to it under the right conditions.
• AI as a tool for economic resilience: 41% believe AI will help them navigate economic uncertainty, with optimism highest in white-collar and service sectors (70%+ see it as a strategic advantage).

Tip: Learn how to use AI in your small business with this guide.

1. Essential for business growth.

• 80% say AI is essential for reaching new customers.
• 78% say AI is necessary to meet rising consumer expectations for speed and personalization.

The data from our latest survey makes it clear: AI is no longer optional, it’s essential for business growth. By automating time-consuming tasks and providing smarter insights, AI allows business owners to focus on what drives growth: innovation, marketing, and customer relationships. In fact, 58% of AI users report saving over 20 hours per month, and 66% say it saves them between $500 and $2,000 monthly—resources they can reinvest directly into scaling their business.

2. Used across business functions.

• 63% of AI users employ AI daily.
• Top uses include data analysis (62%), content generation (55%), and customer engagement/chatbots (46%).

AI is proving its value across nearly every area of small business operations. This demonstrates that AI isn’t limited to a single department. It’s integrated into marketing, customer service, and day-to-day operations alike. By streamlining tasks and enhancing decision-making across multiple functions, AI is helping small businesses operate more efficiently, deliver better customer experiences, and remain competitive in a fast-paced market.

3. Significant time and cost savings.

• 58% save over 20 hours monthly, reinvesting time into growth activities.
• 66% save between $500 and $2,000 monthly, often redirected to marketing and technology upgrades.

One of the most compelling reasons small businesses are embracing AI is the clear return on investment in both time and money. These savings aren’t just staying on the balance sheet; they’re being reinvested into marketing, technology upgrades, and infrastructure that fuel long-term growth.

AI Is No Longer a Question—It’s the Strategy

The findings from our latest survey show that small businesses are no longer debating whether AI belongs in their toolkit. They’re actively figuring out how to scale it across their operations. This marks a significant shift in mindset. AI is now viewed not just as a helpful tool, but as a core strategy for staying competitive, reaching new customers, and meeting the growing demands for speed, personalization, and efficiency. As more businesses adopt AI, the focus is now on how quickly they can leverage it, how many aspects of the business it can assist, and how effectively it can support long-term growth.