AI Adoption Among Small Businesses on the Rise, According to Paychex Survey Results
A new survey from Paychex reveals that 72% of small businesses in the U.S. have a positive outlook on artificial intelligence (AI). The study, conducted online between February 7 and 17, 2025, collected responses from 1,129 business owners and HR leaders.
The survey reveals that AI adoption is most prevalent in customer support (64%), finance and accounting (42%), and HR functions (50%). Among businesses currently using AI, 66% reported increased productivity as a key benefit. Additional advantages of AI for small businesses, according to the survey, include cost savings (44%), revenue growth (40%), improved recruiting (35%), higher employee satisfaction (34%), and enhanced customer acquisition (34%).
Beaumont Vance, Paychex senior vice president of data, analytics, and AI, emphasised that AI allows a business to punch way above its weight. He also stated that AI is a great equalizer for small- and medium-sized businesses in an increasingly competitive landscape. Vance further added that understanding and embracing AI's full potential can boost efficiency, enhance decision-making, and deliver tangible ROI.
However, concerns about how technology companies use their data are expressed by 45% of businesses. Data privacy and security concerns are major obstacles to AI adoption for 54% of businesses. Furthermore, 18% of respondents reported difficulties with AI implementation due to poor data quality.
Interestingly, having accurate data would improve the trust in AI tools for 53% of businesses. The survey also found that 82% of respondents believe AI is helpful to their business.
In terms of investment, human resources emerges as the top investment area, with 53% of respondents planning to direct AI investments toward HR functions. 44% of respondents plan to direct AI investments toward recruiting, while 41% plan to direct AI investments toward onboarding. Additionally, 32% of respondents plan to direct AI investments toward employee retention.
The survey also highlighted some innovative AI implementations. Companies like Leaping AI from Berlin have implemented AI technology in customer service by developing voicebots that automate 70% of inquiries. Startups like qru from Stuttgart have also adopted AI-driven process optimizations in finance, accounting, and HR sectors.
In conclusion, the survey indicates a growing interest and adoption of AI by small businesses in the U.S. With the right data and precautions, AI can bring significant benefits, including increased productivity, cost savings, and revenue growth. However, data privacy and security concerns remain a challenge that needs to be addressed.
Read also:
- YouTube has disbursed over $100 billion to content creators on its platform since the year 2021.
- Investment of $20 million in strategy by the Aqua 1 Foundation of the UAE in Above Food
- Web3 gaming receives a boost as Moonbeam unveils a new platform for game development
- Wealthy entrepreneur David Tepper plans to divest from Nvidia and AMD to invest in a forward-thinking corporation with a market potential surpassing $200 billion.
