AI Adoption Grows Among Small Businesses Despite Budget Constraints

A recent U.S. Bank survey reveals that 36% of small businesses are currently utilizing generative AI, with an additional 21% planning to adopt it within a year. Despite this rising adoption, most companies are spending minimally, with 68% using free or low-cost plans under $50 monthly. The survey, which defines small businesses as those with under $25 million in revenue and fewer than 100 employees, indicates a cautious approach towards ROI, differing from larger enterprises. This trend may hinder immediate revenue growth for AI platforms like OpenAI and Google, as small businesses are still testing tools rather than committing financially. Historically, initial free usage often leads to paid subscriptions later, but the path to monetization may be slower for AI startups. Overall, AI vendors might need to reassess expectations in this segment, focusing on demonstrating tangible business impacts to encourage spending.

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