A new survey and economic analysis from the U.S. Chamber of Commerce looks at the impact that technology platforms have on small businesses and the economy.
This analysis found that high technology adoption, including artificial intelligence, leads to growth and optimism among U.S. small businesses.
“By leveraging technology, small businesses are proving to be more resilient, determined, and innovative than ever as they confront persistent inflationary, workforce, and supply chain challenges,” Jordan Crenshaw, senior vice president of the U.S. Chamber’s Technology Engagement Center, said. “It is promising to see the continued growth in the adoption and use of technology platforms and for businesses to see in real-time the positive impact they have on their operations. This makes it even more vital for U.S. policymakers to consider small businesses when contemplating tech related policies and regulations as they run the risk of hampering technology adoption and starving businesses of all sizes the benefits of these platforms, especially for AI,” Crenshaw added.
Overall, the report revealed that higher technology usage among U.S. small businesses is correlated with growth in sales, employment, and profits. Further, it found that 23 percent of the small businesses surveyed are using artificial intelligence – and those companies saw a 12-point increase over non-AI users in their likelihood to see an increase in profit.
The analysis also showed that 95 percent of small business owners surveyed use at least one type of technology platform, while 87 percent said technology platforms have helped their businesses operate more efficiently. For small businesses that use six or more types of technology, 80 percent report growth in sales, employment, and profits, while 79 percent reported growing employment compared with only 62 percent of low-tech adopters.
In addition, 78 percent of small businesses found that technology platforms helped them cope with burdens of inflation and supply chain disruptions without passing rising costs on to consumers. Meanwhile, nearly 75 percent said that technology helps them compete with larger companies, while 70 percent said their businesses would struggle to survive without access to technology platforms. Finally, most small businesses are worried about having to navigate various state AI and privacy laws.
Also, 85 percent of respondents expect to increase their use of technology over the next two to three years, while 39 percent reported plans to add AI to their digital toolkit. However, it also noted that 77 percent of small businesses do not know enough about AI or claim its benefits are unclear.
The report concluded with several recommendations for policymakers. Among them, they suggest enacting national data privacy legislation that protects all Americans equally and preserves the benefits of a modern digital economy, as well as establishing a regulatory framework that enables the responsible and ethical deployment of artificial intelligence.
The report was conducted in partnership with Teneo Research and is the second edition of the Chamber’s Empowering Small Business report.