Small businesses worldwide are embracing artificial intelligence at an unprecedented rate. New survey data shows AI adoption among small and medium businesses jumped from 39% in 2024 to 55% in 2025. This represents a 41% increase in just one year.
The second annual AI and Small Business survey by Thryv reveals this dramatic shift. The study interviewed 540 small business decision-makers between May 4 and May 14, 2025. Results show AI is becoming essential for competitive advantage.
Why It Matters Now
This rapid AI adoption signals a fundamental change in how small businesses operate. Companies with 10 to 100 employees show the strongest growth. Their AI usage jumped from 47% to 68% year-over-year.
Younger business owners lead this transformation. Professional services and retail sectors drive the highest adoption rates. These small businesses use AI for marketing, customer service, and daily operations.
Most current users believe AI is essential for reaching new customers. About 80% say artificial intelligence helps them connect with prospects. Another 78% believe it meets rising consumer expectations for speed and personalization.
How It Solves Key Business Problems
Small businesses face constant pressure to do more with less. AI addresses this challenge directly. Among current AI users, 63% use the technology daily.
Top applications include data analysis at 62% usage. Content generation follows at 55%. Customer engagement tools like chatbots reach 46% adoption.
These tools deliver measurable results. About 58% of users save over 20 hours monthly. They reinvest this time in growth initiatives like process improvement and customer acquisition.
Financial benefits are equally impressive. Some 66% report monthly savings between $500 and $2,000. These savings often go toward marketing, technology upgrades, and infrastructure improvements.
Strategic Advantage for Indian Businesses
Indian SMBs can leverage these global trends for competitive advantage. The technology helps level the playing field against larger competitors. Small teams can now operate with enterprise-level efficiency.
AI enables personalized customer experiences at scale. This capability is crucial in India’s diverse market. Businesses can tailor services to different regions and customer segments automatically.
The cost savings are particularly valuable for Indian startups. Monthly savings of $500 to $2,000 can significantly impact cash flow. These funds can accelerate growth initiatives and market expansion.
What Business Leaders Should Know
Two separate surveys confirm this trend. The NSBA survey found 76% of small businesses are using or exploring AI applications. This reinforces the Thryv findings about widespread AI adoption.
Current AI users show high confidence in the technology. About 85% expect positive returns on their AI investments. Another 71% plan to increase AI spending over the next year.
The workforce impact appears positive. Some 67% of users say AI reduces pressure on staff. This improves workplace environment and employee satisfaction. Only 14% view AI as potential employee replacement.
Implementation requires strategic thinking. Business leaders need focus on training and security. Collaboration with trusted technology partners proves essential.
Dr. Victoria Ossadnik, COO Digital and Innovation at E.ON, emphasizes this point: “At E.ON, we are playmakers for new energy. Digitalization and digital technology are key for reliable, affordable and sustainable energy systems. Our strategic partnership with Infosys is essential for our digital transformation and operation – together, we are paving the way for a smarter, more efficient energy future.”
Risks and Considerations
Despite optimism, challenges remain. Data security concerns top the list for many businesses. Leaders want tools that demonstrate clear value before full implementation.
Some businesses still hesitate due to complexity. They need simpler, more secure tools for broader adoption. Trusted partners and practical training can accelerate this shift.
The survey data suggests these concerns are decreasing. Security worries dropped 40% year-over-year among respondents. This indicates growing confidence in AI safety measures.
For Indian business leaders, the message is clear. AI adoption is no longer optional for competitive businesses. The question isn’t whether to implement AI, but how quickly and effectively to do so. Early movers gain the strongest advantage in this rapidly evolving landscape.
