A new survey from the National Federation of Independent Business reveals that only 24% of small business owners are currently using AI tools like ChatGPT, Canva, and Copilot in their operations. The data highlights a significant adoption gap, with smaller firms lagging behind larger competitors, though early adopters report that AI is enhancing productivity without displacing workers.
What you should know: Small business AI adoption varies dramatically by company size, with the smallest firms showing the lowest implementation rates.
- Companies with single-digit employee counts have just 21% AI adoption, while firms with 50 or more workers reach nearly 50% implementation.
- Notably, 98% of small businesses using AI report that the technology hasn’t impacted their employee headcount.
The big picture: Small businesses see AI as increasingly important for future competitiveness, even if current adoption remains limited.
- 63% of surveyed employers believe AI utilization will be important in their industry over the next five years, with 12% calling it “extremely important.”
- Common AI applications include communications, marketing and advertising, predictive analysis, and customer service.
Real-world example: Dallas-based law firm Lynn Pinker Hurst & Schwegmann demonstrates creative AI implementation that’s transforming legal work.
- Partner Chris Schwegmann uses Harvey, a legal technology platform, to channel different perspectives, asking AI to assume the role of Supreme Court Chief Justice John Roberts or fictional detective Sherlock Holmes when analyzing cases.
- “Harvey, ChatGPT … they know who those folks are, and can approach the problem from that mindset,” Schwegmann explained.
Why this matters: AI is enabling smaller firms to compete more effectively against larger competitors by automating routine tasks and accelerating complex work.
- At Schwegmann’s 50-attorney firm, AI resolves work in days that previously took weeks, freeing associates from “grunt work” and giving senior partners more time to mentor younger attorneys.
- “No longer does a party have an advantage because they can paper you to death,” Schwegmann noted, explaining how AI helps level the playing field in legal proceedings.
What they’re saying: Legal professionals emphasize that AI augments rather than replaces human judgment and creativity.
- “We still have the need for the independent legal judgment of our associate lawyers and our partners — it hasn’t replaced them, it just augments their thinking,” Schwegmann said.
- “It makes them more creative and frees their time to do what lawyers do best, which is strategic thought and creative problem solving.”
Supporting data: The NFIB findings align with other recent research on small business AI adoption.
- A separate survey from Reimagine Main Street, a project of Public Private Strategies Institute in partnership with PayPal, found similar results among nearly 1,000 small businesses with annual revenue between $25,000 and $50,000.
- The NFIB report suggests that “with a little attention from all the relevant stakeholders, a more equal playing field is possible” for smaller businesses to catch up with AI implementation.
Recent Stories
DOE fusion roadmap targets 2030s commercial deployment as AI drives $9B investment
The Department of Energy has released a new roadmap targeting commercial-scale fusion power deployment by the mid-2030s, though the plan lacks specific funding commitments and relies on scientific breakthroughs that have eluded researchers for decades. The strategy emphasizes public-private partnerships and positions AI as both a research tool and motivation for developing fusion energy to meet data centers' growing electricity demands. The big picture: The DOE's roadmap aims to "deliver the public infrastructure that supports the fusion private sector scale up in the 2030s," but acknowledges it cannot commit to specific funding levels and remains subject to Congressional appropriations. Why...
Oct 17, 2025Tying it all together: Credo’s purple cables power the $4B AI data center boom
Credo, a Silicon Valley semiconductor company specializing in data center cables and chips, has seen its stock price more than double this year to $143.61, following a 245% surge in 2024. The company's signature purple cables, which cost between $300-$500 each, have become essential infrastructure for AI data centers, positioning Credo to capitalize on the trillion-dollar AI infrastructure expansion as hyperscalers like Amazon, Microsoft, and Elon Musk's xAI rapidly build out massive computing facilities. What you should know: Credo's active electrical cables (AECs) are becoming indispensable for connecting the massive GPU clusters required for AI training and inference. The company...
Oct 17, 2025Vatican launches Latin American AI network for human development
The Vatican hosted a two-day conference bringing together 50 global experts to explore how artificial intelligence can advance peace, social justice, and human development. The event launched the Latin American AI Network for Integral Human Development and established principles for ethical AI governance that prioritize human dignity over technological advancement. What you should know: The Pontifical Academy of Social Sciences, the Vatican's research body for social issues, organized the "Digital Rerum Novarum" conference on October 16-17, combining academic research with practical AI applications. Participants included leading experts from MIT, Microsoft, Columbia University, the UN, and major European institutions. The conference...