AI-Using Small Businesses Are More Optimistic About Growth

A study from the Federal Reserve Bank of New York found that small and midsize businesses (SMBs) that use artificial intelligence are more optimistic about hiring and revenue growth than those that do not. Nearly half of US SMBs, 46%, already use AI, according to the study.

AI-using businesses reported a net expectation of higher employment over the next year of 33 percentage points, compared with 15 percentage points among non-users. However, only 51% of adopters said they had integrated AI into their business processes, either partially or fully.

AI has not yet led to widespread reported changes in labor costs: 77% of surveyed businesses said their current labor costs had not changed because of AI. The report suggests the technology may be assisting existing workers rather than replacing them.

Adopters were more likely to expect revenue growth, including some businesses facing financial difficulties. But expectations do not necessarily reflect results: only 31% reported increased sales from AI use. The report said the link between AI use and positive revenue expectations seemed unlikely to be spurious. Researchers added that AI may help some small businesses overcome operational or technical constraints that limit revenue generation.