Small Business AI Adoption Slumps to 28% Amid Cost and Complexity Concerns

Small business AI adoption has declined to 28% from 42% in 2024. Independent operators rely on AI for efficiency but more have stopped incorporating it into their operations since 2024. Cost and complexity are the main barriers. While some small business owners use AI regularly, others worry it can add business risk. Enthusiasm for AI adoption has cooled, with only 19% planning to add AI and 58% not planning to use it. Those using AI find value in content creation, marketing, customer service, and product suggestions.

Small business AI adoption has seen a significant drop, with usage declining from 42% in 2024 to just 28% in 2025. This decrease is attributed to concerns over cost and complexity, as well as the perceived risks associated with AI integration. Despite the decline, those who continue to use AI find value in areas such as content creation, marketing, customer service, and product suggestions.

The survey conducted by NEXT in April 2025 found that while 42% of small businesses reported using AI in 2024, this number has now dropped to 28%. Cost and complexity are the primary barriers cited by small business owners who are hesitant to adopt AI. For instance, Danilo Coviello, founding partner of translation agency Espresso Translations, uses AI for streamlining tasks but worries about the potential risks, such as AI misreading legal nuances or formatting issues [1].

Enthusiasm for AI adoption has also cooled. In 2024, 27% of small businesses planned to increase their AI usage, but this figure has decreased to just 19% in 2025. Furthermore, 58% of small business owners do not plan to use AI for their business at all. This shift in sentiment highlights the challenges that small businesses face when considering AI implementation.

Those small businesses that are currently using AI find value in various applications. According to the NEXT survey, small businesses primarily use AI for content creation and marketing (11%), customer service (9%), and product recommendations (8%). Virtual assistants and accounting tools are also popular, with 8% and 7% of business owners using these respectively. AI tools can help streamline operations, reduce errors, and improve customer experiences.

However, the barriers to AI adoption remain significant. A survey by eGain found that 61% of executives cite inconsistent AI responses as a major barrier to successful AI deployment. This highlights the need for trusted content and knowledge management systems to ensure AI's effectiveness [2].

In conclusion, while AI offers potential benefits to small businesses, the decline in adoption rates indicates that the challenges of cost, complexity, and risk management must be addressed before widespread adoption can occur. As AI continues to evolve, it will be crucial for small businesses to weigh the potential benefits against these barriers to make informed decisions about AI integration.

References:
[1] https://finance.yahoo.com/news/small-business-ai-adoption-declines-153004662.html
[2] https://www.nasdaq.com/articles/egain-unveils-survey-findings-ai-adoption-challenges-and-importance-trusted-knowledge-2025