Short answer
About one in five U.S. businesses. The Census Bureau’s Business Trends and Outlook Survey put AI use between 17% and 20% from December 2025 to May 2026, and 19.8% in the period ending 3 May. Firms with fewer than 20 employees sat around 18% in winter 2025. Larger firms use more: 37% of those with 250 or more employees.
Key takeaways
- Overall business AI use ran between 17% and 20% from December 2025 to May 2026 (Census Bureau, BTOS).
- Small firms trail large ones: around 18% for firms under 20 employees in the November 2025 to January 2026 supplement, against 37% for firms with 250 or more in spring 2026.
- Worker surveys show higher numbers because they count people, not firms. Pew found 21% of U.S. workers doing some of their work with AI in September 2025.
- Among firms not planning to use AI, 65% say it isn’t applicable to the business and 22% cite not knowing what it can do.
You’ll see numbers for this question ranging from under 10% to over 75%, sometimes in the same week. They aren’t all wrong. They’re counting different things. The most reliable number for small businesses comes from the U.S. Census Bureau, which asks thousands of employer businesses every two weeks, and it’s lower than most of what gets shared.
What share of U.S. businesses use AI in 2026?
About one in five. The Census Bureau’s Business Trends and Outlook Survey found overall AI use hovered between 17% and 20% from December 2025 to May 2026, with 19.8% in the period ending 3 May. Between 20% and 23% of businesses expected to be using AI within six months.
The survey asks two questions: did the business use AI in the past two weeks, and does it expect to in the next six months. In November 2025 the Bureau changed the wording from AI use "in producing goods or services" to use "in any business function," which counts things like drafting emails. That change lifted every number, so comparisons with figures before late 2025 need care.
Do small businesses use AI less than large ones?
Yes, though the gap is narrower than it was. In the Census Bureau’s AI supplement, fielded November 2025 to January 2026, firms under 20 employees used AI at around 18%. By spring 2026, 37% of firms with 250 or more employees and 32% of those with 100 to 249 reported using it.
| Firm size | Current use | Expected in six months | Period |
|---|---|---|---|
| 1 to 4 employees | About 18% | About 21% | Nov 2025 to Jan 2026 |
| Under 20 employees | Around 18% | Not reported separately | Nov 2025 to Jan 2026 |
| 100 to 249 employees | 25% | 34% | Nov 2025 to Jan 2026 |
| 250 or more employees | 31% | 40% | Nov 2025 to Jan 2026 |
| 100 to 249 employees | 32% | Not reported | Period ending 3 May 2026 |
| 250 or more employees | 37% | Not reported | Period ending 3 May 2026 |
The direction matters as much as the level. Between December 2025 and May 2026, AI use grew among firms with at least 20 employees and didn’t change significantly among firms with fewer than 20. The Bureau’s researchers also found the smallest firms expected little growth: 21% expected use against 18% current, while firms with 250 or more expected to go from 31% to 40%.
The longer view shows how new this is. Before the wording changed, the Census researchers found use among firms with one to four employees drifting from roughly 4% to roughly 10%. For a business with ten to fifty people, the plain reading is that most of your peers are either not using AI at all or using it without any plan. Being early still counts for something here, and it doesn’t take much: one task, one tool, a few people who use it every week.
Which industries use AI the most?
Knowledge work. As of 3 May 2026, 39.7% of businesses in the Information sector and 33.9% in Finance and Insurance used AI, against a national rate of 19.8%. Retail Trade sat lower, around 14%. Among AI-using firms, Sales and Marketing was the most common function, at 52%.
Why do other surveys show much higher AI use?
Because they count people or weight by headcount. A Federal Reserve note in April 2026 compared three surveys: the Census Bureau found about 18% of firms using AI at the end of 2025, a worker survey found about 41% of the workforce using generative AI for work, and a business survey found 78% of workers at firms that had adopted AI.
| Survey | What it counts | Figure | Date |
|---|---|---|---|
| Census Bureau BTOS | Each firm once, regardless of size | About 18% of firms | End of 2025 |
| Census Bureau BTOS, employment-weighted | Firms weighted by headcount | 32% | Nov 2025 to Jan 2026 |
| Pew Research Center | Workers doing some work with AI | 21% of workers | September 2025 |
| Real-Time Population Survey | Workers using generative AI for work | About 41% of the workforce | November 2025 |
| Survey of Business Uncertainty | Workers at firms that adopted AI | 78% of the labor force | November 2025 |
A large company with one AI pilot counts as an adopter in a firm survey and puts thousands of employees in the "works at an AI-using firm" column. A thirty-person business with no official tool, where two people use ChatGPT on their own, may count as a non-user. The Census researchers noted exactly that: worker task use sometimes happens without formal adoption by the firm. Pew’s figure comes from a separate survey of workers, and shows the share rising from 16% in 2024 to 21% in September 2025.
Why aren’t more small businesses using AI?
Most say it doesn’t apply to them. Among firms not planning to use AI in the next six months, 65% said AI isn’t applicable to the business. 22% cited not knowing what AI can do, and 20% cited privacy or security concerns. Laws and regulations were among the least common reasons.
- Not applicable65% say it isn’t applicableFirms not planning to use AI in the next six months.
- Not knowing22% cite not knowingThey cited not knowing what AI can do.
- Privacy or security20% cite privacy or securityThey cited privacy or security concerns.
The Census researchers suggest "not applicable" partly reflects a gap in awareness rather than a real mismatch, given how many business functions AI now touches. I’d put it more simply. Most owners who say it doesn’t apply haven’t tried it on one specific task in their own week. And among firms that do use AI, most use it narrowly: 57% in three or fewer business functions. Being at 20% nationally doesn’t mean the other 80% are behind in some way that’s hard to close. It means the next step for most small businesses is one task, not a strategy.
Questions people ask
What percentage of small businesses use AI?
Around 18% of U.S. firms with fewer than 20 employees used AI in the Census Bureau’s November 2025 to January 2026 supplement. Across all businesses, use ran between 17% and 20% from December 2025 to May 2026.
Is AI use growing among small businesses?
Slowly. The Census Bureau found AI use grew among firms with at least 20 employees between December 2025 and May 2026, but didn’t change significantly among firms with fewer than 20. The smallest firms expected only modest growth over the next six months.
Why do some reports say most businesses use AI?
They count differently. Surveys weighted by employment or asking workers directly show higher numbers, because large firms employ more people. A Federal Reserve note in April 2026 found 78% of the labor force works at firms that have adopted AI, against about 18% of firms.
Which industries use AI most in 2026?
Information, at 39.7% of businesses, and Finance and Insurance, at 33.9%, as of 3 May 2026, against a national rate of 19.8%. Retail Trade was lower, at around 14%, according to the Census Bureau.
Where does the Census Bureau AI data come from?
The Business Trends and Outlook Survey, which asks U.S. employer businesses every two weeks whether they used AI in the past two weeks and expect to in the next six months. The wording was broadened in November 2025 to cover any business function.
Sources
- U.S. Census Bureau, "Large Firms With at Least 20 Employees Biggest AI Users", America Counts (May 2026, BTOS data December 2025 to May 2026): Overall use of 17% to 20%, 19.8% national rate, firm-size figures for spring 2026, sector rates, and the November 2025 wording change.
- U.S. Census Bureau, Bonney et al., "The Microstructure of AI Diffusion", CES-WP-26-25 (April 2026): Supplement-period rates by size class, 32% employment-weighted use, reasons for non-adoption (65%, 22%, 20%), 52% sales and marketing, 57% in three or fewer functions.
- Federal Reserve Board, FEDS Notes, "Monitoring AI Adoption in the U.S. Economy" (April 2026): About 18% of firms (BTOS), about 41% of the workforce (Real-Time Population Survey) and 78% of the labor force at adopting firms (Survey of Business Uncertainty).
- Pew Research Center, "What the data says about Americans’ views of artificial intelligence" (March 2026): Share of U.S. workers doing some of their work with AI, 16% in 2024 and 21% in September 2025.
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