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September 12, 2025

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The report provides insight into opportunities and challenges small businesses face with AI adoption

The Initiative for a Competitive Inner City (ICIC) recently released its report “AI in Business: How Small Business Owners Are Learning, Using, and Navigating Challenges with AI Tools.” The groundbreaking research report — authored by Miles Chandler, Howard Wial and Dobbin O. Bookman — takes a deep dive into the evolving relationship between artificial intelligence (AI) and small businesses across the United States, revealing how business owners are using AI tools and where challenges still remain.

The report shows that nearly nine in 10 small businesses are already using AI, and more than 60% report that AI has increased productivity. Yet, many still face knowledge gaps, implementation challenges, and concerns about responsible AI adoption.

According to ICIC, its report goes beyond assessing AI usage — it delivers data-driven recommendations to help businesses, educators and policymakers address these barriers and ensure that AI adoption is both effective and inclusive. Based on insights from a survey of more than 3,700 small business owners and five focus groups, the research highlights specific areas where AI education and training can have the greatest impact, providing a roadmap for programs and policies that support small businesses in navigating this evolving technology.

“AI is not just a tool; it’s a transformative force that can help small businesses in under-resourced communities drive prosperity and create generational wealth,” said Steve Grossman, CEO of ICIC, underscoring the importance of this research. “This report provides the insights needed to help small business owners navigate AI adoption responsibly and effectively.”

Grounded in research and insights

This report is the result of ICIC’s rigorous research and data collection, leveraging responses from thousands of small business owners nationwide, he said. Quantitative survey results and qualitative insights from focus groups shaped the findings, providing an objective view of how AI is impacting businesses across sectors. The research highlights knowledge gaps, barriers to adoption, and opportunities to improve AI integration into small business operations.

“Our research is grounded in the voices of more than 3,700 small business owners, including survey and focus group participants, giving us a clear picture of both the opportunities and challenges they face with AI adoption,” said Howard Wial, ICIC’s director of research. “By listening to their experiences, we’ve identified practical insights and recommendations that reflect their needs, concerns and aspirations. This report provides small businesses with the insights they need to take thoughtful, strategic steps toward leveraging AI effectively.”

This work was generously funded by Intuit Inc., whose support helped ICIC conduct this comprehensive research. The findings and recommendations from the research informed the development of the Intuit More with AI Tour, a nationwide initiative designed to give small businesses the knowledge and tools to take full advantage of AI and its benefits.

“AI can be a game-changer for small businesses, helping them boost productivity and grow their sales and revenue,” said Kerry McLean, executive vice President, General Counsel and Corporate Secretary, Intuit. “ICIC’s extensive research provides us with a comprehensive understanding of how small businesses are using AI now, and what support they need to make full use of AI-powered tools to power their prosperity. We’re excited to partner with ICIC to bring AI to small businesses with the Intuit More with AI Tour.”

What’s inside the report?

AI adoption is widespread: Nearly 89% of surveyed small businesses report using AI tools — many for everyday tasks like drafting emails, creating marketing content, and analyzing data.

Impact on Businesses and Employees: More than 60% of business owners say AI adoption has boosted both employee productivity and job satisfaction, but significant barriers remain.

Education Is Essential: From online courses to podcasts and peer learning groups, business owners overwhelmingly prefer hands-on, flexible learning opportunities to build their AI confidence.

With actionable recommendations as well as insights about the barriers small businesses face — including cost, time constraints, and privacy concerns — this report is a must-read for entrepreneurs, educators, and policymakers alike. Whether you’re just starting your AI journey or looking to deepen your understanding, this research is your guide to navigating the future of AI in small businesses.

About the Initiative for a Competitive Inner City (ICIC)

The Initiative for a Competitive Inner City (ICIC) is the widely recognized authority on accelerating small business growth in under-resourced communities. Founded by renowned Harvard Business School professor Michael Porter 30 years ago as a research and strategy organization, ICIC drives inclusive economic prosperity through innovative research and programs that create jobs, income, and wealth for local residents.

About Intuit Inc.

Intuit is the global financial technology platform that powers prosperity for people and communities worldwide. With approximately 100 million customers using products such as TurboTax, Credit Karma, QuickBooks, and Mailchimp, Intuit leverages data-driven insights and cutting-edge technology to help individuals and small businesses succeed. Intuit is committed to responsible AI innovation and supporting economic opportunities for businesses of all sizes.

Download the full report and learn more at icic.org/research/ai-in-business.

To learn more about Intuit, visit Intuit.com.