SMB Use of AI: Benefits and Challenges

March 12, 2026

Nearly half of SMBs use AI, and a recent Bredin survey of 500 U.S. SMB principals reveals the upsides and drawbacks.

SMBs report many benefits from AI, including improved quality, better marketing and sales performance, higher customer satisfaction, and increased IT and data security. At the same time, they face challenges such as keeping up with the rapid evolution of AI, the need for customization, employee resistance, and security concerns.

#1 AI benefit by SMB size:

  • Very small businesses (VSBs, 1–19 employees): Better quality
  • Small businesses (SBs, 20–99 employees): Improved marketing and sales performance
  • Midsized businesses (MBs, 100–1,000 employees): Higher customer satisfaction; improved IT/data security (tied)

SMB AI Benefits

#1 AI challenge by SMB Size:

  • VSBs: Keeping up with the pace of change
  • SBs: Need for extensive customization
  • MBs: Employee resistance; security and compliance (tied)

SMB AI Challenges

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