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AI & Automation

Only 1 in 4 US Businesses Use AI Yet. Here’s How Small Firms Can Catch Up.

U.S. Census Bureau data shows fewer than one in four American businesses use AI. See adoption by company size and industry, plus 5 practical ways to start.

Small business owner using a tablet to manage inventory in her clothing store

You hear about AI everywhere, so it is easy to assume every company is already using it. The official US data tells a different story. According to the U.S. Census Bureau, fewer than one in four American businesses use AI today. For small business owners, that is not a reason to worry. It is a window of opportunity.

Chart of US business AI use by company size, Census Bureau BTOS August 2026
AI use by US company size, U.S. Census Bureau BTOS, August 2026.

What the Census Bureau data shows

Every two weeks, the Census Bureau’s Business Trends and Outlook Survey (BTOS) asks a nationally representative sample of US employer businesses whether they used AI in any business function in the last two weeks.

  • At the start of 2026, 17.7% of US businesses said yes.
  • In the survey covering August 24 to September 6, 2026, that rose to 23.8%, about a third more businesses in under a year.

Adoption is growing fast, but three out of four businesses still are not using AI at all.

Bigger companies are pulling ahead

The gap shows up clearly by company size. In the Census data for August 2026:

Company size (employees) Businesses using AI
1–4 23.6%
5–9 21.0%
10–19 20.8%
20–49 23.3%
50–99 25.8%
100–249 34.5%
250+ 38.4%

Companies with 100 or more employees are using AI at well above the national rate. Small firms have largely stayed flat, often because they do not have the time or technical staff to figure out where to start.

Some industries are far ahead of others

Chart of US business AI use by industry sector, Census Bureau August 2026
AI use by industry, U.S. Census Bureau BTOS, August 2026.

By sector, AI use in August 2026 was highest in Information (43.5%) and Professional, Scientific and Technical Services (43.3%), followed by Finance and Insurance (36.5%). It was far lower in Construction (16.0%), Retail (15.5%) and Accommodation and Food Services (8.5%). If you are in one of the lower-adoption industries, the first local business to use AI well can stand out quickly.

5 practical ways small businesses can start with AI

  1. Answer every inquiry. An AI voice or chat assistant can respond to calls and website visitors 24/7, qualify leads and book appointments.
  2. Automate repetitive admin. Invoices, follow-up emails, appointment reminders and data entry are ideal first tasks.
  3. Get faster reports. Dashboards that pull sales, leads and operations data into one place save hours every week.
  4. Speed up customer support. AI can draft replies and suggest answers from your own knowledge base, with a human approving.
  5. Personalize marketing. Segment customers and tailor offers based on real behavior, not guesswork.

Start small, measure, then scale

The businesses that get value from AI rarely start with a giant project. They pick one painful, repetitive task, automate it, measure the time or revenue impact, and then expand. That approach keeps cost and risk low while proving the return.

How we help

Mhsoft Techs builds practical AI tools for businesses: custom AI voice assistants, automation workflows and AI-powered dashboards, integrated with the software you already use. See examples on our AI Automation and Custom AI Voice Assistant pages.

Not sure where AI fits in your business? Book a free 30-minute AI opportunity call and we will point out the first one or two tasks worth automating.

Based in the US? See how we work with American businesses on our Software Development for USA page. We also serve clients in Canada, the UAE and Saudi Arabia.

Sources

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Written by the Mhsoft Techs Team

Mhsoft Techs is a software development company in Rawalpindi building websites, mobile apps, SaaS platforms and AI automation for businesses in Pakistan and abroad.

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