Why SMBs Don’t Use AI Features

More than two-thirds of U.S. SMBs are aware of AI features built into common applications they already pay for, like Microsoft 365, Google Workspace, QuickBooks, or their CRM. However, a significant number haven't tried those features yet. Our new survey of 500 U.S. SMBs reveals why.

Awareness and use of built-in AI features

• Very small businesses (VSBs, 1–19 employees): 38% are aware of and actively use built-in AI features, 36% are aware but haven't tried those features, and 18% don't know they exist.
• Small businesses (SBs, 20–99 employees): 65% are aware of and actively use built-in AI features, 25% are aware but haven't tried those features, and 7% don't know they exist.
• Midsized businesses (MBs, 100–1,000 employees): 69% are aware of and actively use built-in AI features, 20% are aware but haven't tried those features, and 11% don't know they exist.

Top reasons SMBs don’t use AI features integrated into common applications

• Customer data privacy tops the list for very small businesses (39%), followed by not having had time to learn the features (36%).
• Small businesses are most concerned about their business data being stored or used to train AI models (38%), and 32% prefer dedicated AI tools.
• 45% of midsize businesses prefer dedicated AI tools over add-ons built into other software, significantly more than very small businesses (16%).
• About one in five small (22%) and midsize (21%) businesses tried the features and didn’t find them useful.

For more, see why some SMBs aren’t adopting AI, SMB use of and satisfaction with AI and our hub on SMB AI adoption and usage.

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