Why Some SMBs Aren’t Adopting AI

Who are the SMBs who aren’t adopting AI? And what’s holding them back? To find out, we recently surveyed 500 U.S. SMB principals.

Very small businesses (VSBs, or those with fewer than 20 employees), are least likely to adopt AI. They are much less likely to be using or piloting AI than small businesses (SBs, with 20 to 99 employees) or midsize businesses (MBs, with 100-500 employees), and much more likely not to be interested in AI at all. There are other interesting firmographic differences. Gen Z entrepreneurs (18 to 27 years old) are much more likely than their older peers to use AI. Likewise, companies in the Professional Services industry group are much more likely to use AI than other industry groups; Personal Services firms are much less likely to be interested in AI. And companies that are growing are much more likely to be using AI, while those whose growth is flat or down vs. 2023 are much more likely not to be interested in AI.  

Who’s Using AI?

For SMBs that aren’t interested in AI, the number one reason is that they don’t see the benefit. The second-biggest obstacle for VSBs is that they simply don’t see applications for AI, while holdout SBs and MBs are put off by the cost. For AI marketers, education on the benefits, applications, and value of AI will continue to drive SMB adoption.

SMB AI Adoption Inhibitors

Looking for actionable SMB insight? Bredin’s global research gives you high-value insights to improve your go-to-market, product, pricing, UX, and other strategies. We also generate uniquely valuable data for high-impact content, PR, social, and sales support programs.