Generative Artificial Intelligence (Generative AI) is no longer a futuristic concept bordering on science fiction. Gradually, it has become a practical tool in the daily operations of small businesses. According to a national survey conducted by Reimagine Main Street in collaboration with PayPal, the adoption of this technology has reached a tipping point. What was once an optional decision is now almost a strategic necessity.
More than 50% of small businesses are exploring the use of generative AI tools, while 25% have already integrated them into their daily operations. This marks a paradigm shift: from asking “should I use AI?” to “how and when should I integrate it into my business?”
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How are small businesses adopting generative AI? A look at the data
The Reimagine Main Street study identified three major groups:
- Active Users (25%): use generative AI regularly for marketing, planning, and operations.
- Explorers (51%): are experimenting with AI tools but have not yet fully adopted them.
- Non-users (24%): are not currently using AI and have no short-term plans to do so. Of this group, only 5% express active resistance.
The report notes that most small businesses do not reject Artificial Intelligence: they are simply at different stages of adoption and engagement with the technology.
What is generative AI used for in small businesses?
Applications vary, but three areas stand out due to widespread use. According to the study presented in June 2025, here are the main findings:
Marketing automation and customer service
- 91% use AI for content generation and personalization.
- 84% are willing to automate content creation.
- 60% use tools to obtain customer analytics and insights.
Productivity enhancement
- 53% automate customer service.
- 48% apply AI in sales support tools.
- 59% consider automating responses to common queries viable.
Innovation and product development
- 58% use AI in designing and developing new products.
- 34% apply AI for quality control and process optimization.
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What benefits are small businesses getting from AI?
According to the survey, most responses point to saving time. The main advantages are:
- 92% of users say AI saves them time.
- 87% believe it is essential to stay competitive.
- 88% say it improves their business resilience in the face of economic challenges.
The perception is that generative AI allows entrepreneurs to spend more time on strategy, make better financial decisions, and anticipate market trends.
What are the challenges for small businesses implementing generative AI?
The Explorers group, which makes up more than half of the surveyed businesses, faces significant obstacles, including:
- 38% are concerned about data security.
- 37% lack the time or resources to explore tools.
- 34% do not yet see a clear return on investment.
These challenges stem not from skepticism, but from a lack of access, technical support, and training. In fact, 74% of Explorers say they would adopt AI if they saw clear business benefits and 73% would do so if easier-to-use solutions were available.
What type of AI are small businesses looking to implement?
The demand goes beyond basic automation. Businesses are ready to move toward more sophisticated applications:
- 53% want financial intelligence solutions, such as cash flow prediction.
- 45% seek revenue forecasting tools to optimize inventory, staffing, and campaigns.
- 40% want real-time behavior analysis to dynamically adjust prices and promotions.
These tools represent the next step: moving from operational efficiency to strategic competitive advantage.
What will happen to businesses that haven’t adopted AI yet?
According to Reimagine Main Street’s analysis, most “Non-users” are not skeptics but inexperienced. Lack of exposure and knowledge, rather than ideological resistance, explains their low adoption. Only 5% say they are against AI.
Moreover, experts agree that meeting the needs of Explorer entrepreneurs can help convince Non-users. By resolving usage, security, and training barriers, the path to mass adoption becomes clearer.
What is the future of generative AI in small businesses?
Everything points to accelerated adoption. With 66% of business owners convinced it is key to staying competitive, and a high percentage seeking to implement strategic AI in the short term, it is evident that the transformation has only just begun.
Generative AI in small businesses is no longer an experiment: it is a growing reality. From creating content to forecasting sales, automating processes, or improving customer relationships, artificial intelligence is helping thousands of entrepreneurs become more efficient, competitive, and resilient.
