A growing majority of small businesses believe adopting artificial intelligence (AI) is critical for remaining competitive, according to a new survey conducted by Reimagine Main Street in partnership with PayPal.
The survey, which included nearly 1,000 small businesses with annual revenues between $25,000 and $5 million, found that 82% of respondents believe AI is essential for competing in today’s marketplace. Additionally, 25% of those surveyed have already integrated AI into their daily operations, while over half are actively exploring its implementation.
“Small business owners are already putting AI to work,” said Tammy Halevy, Executive Director of Reimagine Main Street. “But they need tools that are simple to use, secure, and built for how they actually run their businesses.”
The study categorizes small businesses into three segments: “Active Users” who are currently using AI, “Explorers” who are testing or researching AI, and “Non-Users” who have no plans to use AI.
Among Active Users, AI is being used for business automation, financial forecasting, predictive revenue analysis, and customer insight tools. For example, 77% see marketing and customer engagement as the top areas where AI would have the greatest impact. Additionally, 84% are open to automating marketing content, and 59% support automating customer service inquiries.
Security and cost remain barriers for many Explorers. Around 38% cited data privacy concerns, 37% noted resource limitations, and 34% said they don’t yet see a clear use case or return on investment. However, 74% said they would adopt AI if there were clearer ROI, and 73% wanted tools that are easier to use.
“AI isn’t just about saving time. It’s about fundamentally transforming how small businesses compete,” said Rhett Buttle, President of the Public Private Strategies Institute. “They’re looking for strategic advantages that improve decisions and help them stay ahead.”
Michelle Gill, General Manager of Small Business and Financial Services at PayPal, echoed that sentiment, noting that PayPal is developing AI tools to support small businesses in areas such as personalization, fulfillment, and discoverability.
Overall, 66% of small business owners surveyed said AI is crucial to staying competitive, with many citing AI’s potential to enhance business resilience during economic downturns. Among those using AI, 63% said it helps them weather tough financial conditions.
Image: PayPal
This article, “PayPal Survey: Most Small Businesses See AI as Key to Staying Competitive” was first published on Small Business Trends
Source: Small Business Trends
