37% of small businesses use AI with Gen Z leading adoption and satisfaction

Small businesses across America are embracing artificial intelligence at an accelerating pace, with 37% of owners currently using AI tools and 71% of current users planning to increase their investment, according to a new CNBC|SurveyMonkey survey. This grassroots adoption is reshaping Main Street operations and workforce decisions, with younger entrepreneurs leading a generational divide in both AI adoption and its impact on employment.

The generational divide: Younger business owners are driving AI adoption at dramatically higher rates than their older counterparts.

• Gen Z and millennial small business owners report current AI usage at 59% and 51% respectively, compared to just 34% of Gen X and 29% of boomers.
• Investment plans follow the same pattern: 59% of Gen Z and 55% of millennials plan to increase AI spending over the next 12 months, versus only 35% of Gen X and 25% of boomers.
• A striking 89% of Gen Z and millennial AI users report positive impacts, compared to 74% of Gen X and 59% of boomers.

Impact on employment: AI adoption is directly influencing staffing decisions across small businesses, with over half of AI users reporting workforce changes.

• Among small business owners using AI, 54% have either already reduced employee headcount (20%) or may do so in the future (35%).
• Younger generations are most likely to report AI-driven staffing changes, with 69% of Gen Z and millennial owners saying AI has impacted headcount at their company.
• Older generations report slower workforce adjustments: 50% of Gen X and 36% of boomers have experienced headcount changes due to AI.

Why this matters: The survey reveals that AI’s transformation of American business extends far beyond Silicon Valley headlines to fundamentally reshape small business operations.

• Three-quarters (75%) of small business AI adopters report the technology is already making a positive impact on their operations.
• For non-users, 17% expect to begin investing in AI tools, indicating continued growth in adoption rates.
• The generational differences in both adoption and workforce impact suggest deeper shifts in workplace culture and leadership approaches are emerging.

What they’re saying: The data reveals clear sentiment differences across generations regarding AI’s overall business impact.

• Older generations show more uncertainty, with Gen X (25%) and boomers (36%) having higher percentages of owners who remain undecided on AI’s overall impact.
• According to the survey, for younger generations, “AI isn’t just a tool” but “is becoming a strategic advantage.”