72% of small businesses have a positive outlook on AI

A new survey from Paychex, Inc., a leading human capital management (HCM) company, reveals that 72% of small businesses in the U.S. have a positive outlook on artificial intelligence (AI) despite ongoing concerns about data accuracy, security, and privacy.

The survey, which gathered responses from over 500 business owners and 500 HR leaders, highlights the significant impact AI is having on small businesses. Of those currently using AI, 66% reported increased productivity. Additional benefits include cost savings (44%), revenue growth (40%), improved recruiting (35%), higher employee satisfaction (34%), and enhanced customer acquisition (34%).

AI adoption is accelerating across core business functions. According to the survey, 65% of small businesses already use AI, particularly in customer support (64%), human resources (50%), and finance and accounting (42%). Furthermore, 76% of respondents expect AI to have a moderate to significant impact on their business over the next five years.

Despite the optimism, challenges remain. Data security and privacy concerns are top of mind for 54% of businesses, with 45% expressing apprehension about how technology companies handle their data. Additionally, 18% of AI users report difficulties stemming from poor data quality.

Looking ahead, 72% of small businesses plan to invest at least $1,000 in AI within the next year. Human resources will be the primary focus of these investments, with 53% allocating funds toward HR functions, including recruiting (44%), onboarding (41%), and employee retention (32%).

The study underscores the growing role of AI in enhancing efficiency, decision-making, and overall business performance for small enterprises across the U.S.