New Survey Data from Thryv Finds 51% of Small Businesses Expect to Use AI by End of 2025

Small business adoption of AI will soon see a big rise. While only 39 percent of small businesses are currently using AI, that percentage is expected to jump to 51 percent by the end of 2025 according to new survey data from small business software platform Thryv (NASDAQ: THRY). There is good reason for the anticipated uptick. In quantifying the benefits of AI tools, more than half of responding AI users expect to save between $500-$2,000, and up to 20 hours, monthly. Thryv conducted the survey of 500+ small business owners in April of 2024.

The Benefits of AI

Small businesses owners appreciate how AI can impact how they operate:

• 73 percent said it will offload repetitive tasks
• 67 percent said it will give them personal time back
• 58 percent said it will help with resource constraints

“Small business owners literally can’t do it all, so while they can be more cautious when it comes to adopting new technologies, Thryv’s survey indicates a lot of them expect to benefit from the promise of AI,” said Grant Freeman, president of Thryv. “For many, it’s already delivering significant time savings, particularly when it comes to the content creation capabilities of generative AI.”

AI vs. Employees

Small businesses employ nearly half of all U.S. employees according to the SBA’s Office of Advocacy. Thryv’s survey indicates that AI will not immediately upend this dynamic. Only a third of respondents think AI will make their business less reliant on employees.

When asked if they needed to add a new resource to their business, and either a person or AI software could perform the task equally well, small business owners are evenly divided: 36 percent would prefer to purchase AI software; 34 percent would prefer to hire a new employee; and 30 percent would prefer whichever option is the least expensive.

Impact of Age and Size

Age matters when it comes to AI adoption. Less than a third of small business owners aged 60+ are using AI; and almost half in this age group do not plan to use AI for their business. Forty-three percent of those small business owners using AI are in the 21-49 age range.

Usage of AI increases as the size of the business increases.

• 47 percent of businesses with 10+ employees use AI
• 40 percent of businesses with 5-9 employees use AI
• 27 percent of businesses with 1-4 employees use AI

AI Pros and Cons

While there is clearly momentum for AI adoption, almost a third of respondents believe using it could have unintended consequences. For Jermaine Stanley, founder of Stanley Consulting Group, that translates into the potential for unconscious bias. “AI has been a game changer for content creation. I no longer battle writer’s block and the time I gain back is considerable. But, as a DEI consultant, I believe we need to be diligent about how we leverage data, so we don’t unwittingly exclude any populations. DEI is designed to benefit all, rather than one or two demographics.”