Artificial intelligence is rapidly changing the way businesses function, and that shift reaches far beyond megacorporations with deep pockets to test new tools. Firms of all sizes — nationally recognizable brands and Main Street staples alike — are weaving AI into their day-to-day work.
From inventory management to customer service duties, and countless tasks in between, small businesses around the globe are turning to AI to streamline their operations.
More than half (58 percent) of small businesses reported using generative AI in 2025, continuing a steep uptick in adoption rates from 40 percent last year and 23 percent in 2023, according to data from the U.S. Chamber of Commerce.
Thanks to a dramatic increase in the availability of machine learning and AI in recent years, using the cutting-edge technology to pursue new solutions to old problems is no longer a luxury reserved for tech giants and their partners.
According to Dayton Steele, an AI researcher and assistant professor in supply chain operations at the University of Minnesota Carlson School of Management, many small businesses are eagerly embracing the tech-based solutions.
Dayton Steele, assistant professor in supply chain operations at the University of Minnesota Carlson School of Management
“Traditionally, AI usage has been expensive and maybe determined (to be) somewhat more sophisticated,” Steele said. …“People who don’t have a background in sophisticated data analysis now have the ability to do that, so I think Gen AI is actually welcomed by small businesses because they don’t need to hire their own data analytics team to reap some of the benefits of AI.”
Through research with large retailers, Steele found that while humans remain essential to complex challenges like demand forecasting, machine learning significantly expedites the process, freeing up employees to focus on other tasks.
Even for smaller operations like local grocery stores and independent restaurants, Steele said any point in the supply chain is fair game for AI to optimize.
“What makes grocery unique in the space of retail is ultimately the perishability aspect,” Steele said. “The biggest challenge to a grocery store (is) if you buy too much, it will go bad. I would think that the forecasting side (of machine learning) would be very, very valuable to companies. As the technologies become better and more accessible, there’s no reason why small businesses can’t adopt that technology for themselves.”
Small businesses have proven enthusiastic to do just that, with 84 percent of them planning to increase their use of technology platforms, according to the U.S. Chamber of Commerce data. Similarly, 77 percent of firms already using AI shared that limits on the technology would negatively impact their growth, operations and bottom lines.
Even without detailed data sets, Steele said, businesses can capitalize on AI. For instance, by uploading a photo of a store aisle or inventory area, AI can automatically identify which products are missing, without workers needing to check the items manually. In the restaurant industry, technology can analyze video to help staff turn tables more efficiently.
Related: AI Steps In to Automate One of Restaurants’ Most Dreaded Tasks
“Basically, the power of things like photos and audio clips is now going to be able to be used without needing to somehow translate that into things like the matrix — zeros and ones that a computer can read in a database,” Steele said.
Not only can the implementation of AI and machine learning simplify otherwise time- and labor-intensive tasks, but the U.S. Chamber of Commerce reported that it has also proven financially advantageous for firms. High-tech adopters continue to experience sales and profit growth beyond that of low-tech small businesses. Eight of 10 business owners credit technology with helping them navigate inflation and supply chain disruptions, as well as improve access to capital.
“In general, the technology will get better, and it will get cheaper,” Steele said. “Both of those are good things for small businesses.”
