AI Report 2026: How Small Businesses Are Using AI to Grow

A few years ago, artificial intelligence felt like something built for large companies with big budgets and dedicated technology teams. 

Today, it’s becoming part of everyday life for small businesses. 

Whether it’s helping write marketing emails, responding to customer inquiries, organizing schedules, generating social media content, or automating repetitive tasks, AI is finding its way into nearly every corner of business operations. 

The latest Thryv AI & Small Business Adoption Report shows just how quickly things are changing. 

This year, 66% of small businesses report using AI, up from 55% last year. More importantly, AI is no longer something owners are simply testing. For many, it’s become part of their daily workflow. 

The message from this year’s report is clear: small businesses have embraced AI. The bigger question now is how to use it more effectively. 

While adoption continues to rise, many business owners feel they’re still learning how to get the most from the technology. 

In fact, nearly 70% of respondents say they lack the skills needed to use AI effectively. 

That finding highlights an important shift happening across the small business community. 

The challenge is no longer access. 

Business owners have access to AI tools. They’re experimenting with them. They’re seeing results. 

What they’re looking for now is guidance. 

They want to know: 

• Which tools are worth using 
• How to write better prompts 
• Where AI fits into their daily workflow 
• How to save more time without creating more complexity 
• How to use AI strategically instead of occasionally 

It’s one reason so many owners are turning to webinars, online resources, social media, and even AI itself to continue learning. 

The businesses that invest in developing AI skills may have the greatest opportunity to gain a competitive advantage over the next few years. 

Small business owners have always been experts at wearing multiple hats. 

Marketing manager. 

Salesperson. 

Customer service representative. 

Bookkeeper. 

Operations manager. 

Now AI is helping lighten some of that workload. 

One of the report’s most interesting findings shows that if AI software and a new employee could perform the same task equally well, nearly half of business owners would choose AI. 

That doesn’t mean owners are replacing employees with technology. 

Instead, they’re using AI to extend the capacity of their existing teams. 

When labor costs continue to rise and hiring remains challenging in many industries, AI offers a practical way to increase productivity without increasing headcount. 

For many businesses, it serves as an extra set of hands that never clocks out. 

For years, discussions about AI focused on possibilities. 

Today, business owners are increasingly focused on results. And according to this year’s report, many are finding them. 

Among businesses currently using AI: 

• 70% say it has increased revenue 
• 55% say it has reduced costs 
• 83% say it saves time 
• 81% say it helps them make more strategic decisions 

For small business owners, time is often the most valuable resource of all. The majority of AI users report saving anywhere from 11 to 40 hours each month. That’s time that can be spent following up with leads, serving customers, improving operations, or focusing on growth initiatives that often get pushed aside during busy weeks. 

The takeaway isn’t that AI replaces work. It’s that AI helps create more time for the work that matters most. 

Today’s consumers expect businesses to respond faster, communicate more personally, and deliver a smoother overall experience. 

Meeting those expectations can be difficult for small businesses with limited staff and resources. 

That’s where AI is increasingly making a difference. 

According to the report: 

• 72% believe AI is necessary for acquiring new customers 
• 68% say it helps them meet rising customer expectations 
• More than half worry they could lose customers if they fail to adopt AI 

Many small business owners are discovering that AI isn’t just improving efficiency behind the scenes. It’s helping create better customer experiences at every stage of the customer journey. 

Despite concerns often highlighted in media headlines, most small business owners remain optimistic. 

An overwhelming 86% say they view AI as an opportunity rather than a threat.  

That optimism likely comes from experience. 

Business owners are seeing firsthand how AI can help solve everyday challenges, from managing workloads and improving marketing performance to responding to customers faster and making smarter decisions. 

Rather than viewing AI as a replacement for people, many see it as a tool that helps people work more effectively.

If there is one lesson from this year’s report, it’s that AI adoption is no longer the differentiator. 

Implementation is. 

The businesses seeing the greatest results aren’t necessarily using the most advanced tools. They’re finding practical ways to apply AI to real business challenges. 

They’re saving time. 

They’re improving customer experiences. 

They’re operating more efficiently. 

And they’re creating capacity to focus on growth. 

As AI continues to evolve, the businesses that combine technology with the right processes and strategy will be best positioned to stay competitive. 

The promise of AI isn’t just about automation. It’s about helping small business owners spend less time managing tasks and more time growing their business. 

Thryv helps make that possible. 

From creating marketing content and managing customer communications to organizing leads and automating follow-up, Thryv’s AI-powered tools help small businesses simplify daily operations and improve efficiency. 

Because when AI is built into the tools you already use, it’s easier to turn potential into results. And that’s where the real value begins. 

Download the 2026 AI & Small Business Adoption Report to explore the complete findings, including adoption trends, investment patterns, revenue impact, hiring insights, and the opportunities small businesses see for the future of AI.