The U.S. Chamber of Commerce Technology Engagement Center (C_TEC) recently released its fourth annual report, "Empowering Small Business: The Impact of Technology on U.S. Small Business," offering valuable insights into how technology is shaping America’s entrepreneurial landscape. This report highlights the growing adoption of AI and related technologies among small businesses, as well as the challenges they face in navigating a complex regulatory environment.
Widespread Adoption of Technology Among Small Businesses
In 2025, nearly all small businesses have incorporated some form of technology into their operations. According to the C_TEC report, 99% of surveyed companies now use at least one technological tool, up from 93% in 2022. This shift underscores a significant transformation in how small businesses operate in today’s digital-first world.
Generative AI has emerged as one of the most widely adopted technologies, with 44% of small businesses using it. This is slightly higher than search engines (46%) and social media platforms (42%), highlighting its versatility and impact. High adopters - those leveraging six or more platforms - are nearly a third of all small businesses, reflecting a trend toward comprehensive technology use.
AI Adoption Across All Business Sectors
Artificial intelligence adoption has surged, with 58% of small businesses doubling their use since 2023. This represents one of the fastest growth rates in technology adoption tracked by C_TEC. Notably, the technology sector leads with 77% AI usage, followed closely by financial services (74%) and entertainment/media (65%). Even traditionally conservative industries like construction (47%) and manufacturing (46%) are embracing AI, demonstrating its broad applicability.
Most small businesses rely on external AI tools rather than developing their own solutions. Only 8% use in-house AI development, suggesting a preference for pre-packaged solutions that save time and resources. The competitive landscape is driving this trend, with 80% of businesses planning to expand their AI use after observing their competitors’ success.
Technology’s Role in Driving Business Growth
The correlation between technology adoption and business performance remains strong. High-technology adopters report significant growth metrics: 85% increased sales, 84% saw profit growth, and 82% expanded their workforce. By contrast, low-technology users lag behind, with only 77% experiencing similar growth rates. This stark difference reinforces the importance of technology investment for small businesses aiming to thrive in a competitive market.
The most common applications of technology include marketing and promotions (46%), payroll management (44%), and customer relationship management (42%). Technology touches nearly every aspect of operations, from accounting and inventory management to cybersecurity and supply chain optimization.
Interest in Emerging Technologies
Small businesses are also eyeing emerging technologies like cryptocurrency. While 77% plan to adopt AI, 49% are considering cryptocurrency use. Among those familiar with crypto, 33%, expect significant growth in its adoption over the next two years. The telecommunications sector leads in cryptocurrency usage (61%), followed by technology companies (48%) and education (48%).
Stablecoins are particularly appealing, with 84% of businesses expressing interest if implementation were streamlined. This indicates a growing recognition of crypto’s potential for streamlining transactions and enhancing financial operations.
Concerns About Regulatory Compliance
Despite the excitement around new technologies, small businesses are increasingly worried about regulatory challenges. The percentage of companies concerned about technology regulations rose by 11 points to 65%, with compliance concerns also climbing by 14 points to 65%. The complexity and patchwork nature of state AI and privacy laws are causing significant headaches for business owners.
Only 31% feel well-prepared to comply with proposed AI regulations, which require transparency in AI use, risk assessments, and human oversight of critical decisions. Most businesses anticipate difficulties, with staying updated on requirements (35%) and uncertainty about applicability (26%) being the top concerns.
For those already using AI, potential restrictions are worrying. 33% fear increased AI costs, while 29% worry about reducing their use and 28% even consider scaling back AI applications if regulations are introduced. These concerns extend beyond compliance costs to include operational impacts on growth and profitability.
Data Access as a Competitive Advantage
Access to data is crucial for small businesses looking to compete with larger companies. Nearly 75% of respondents believe that restricted data access would harm their profits, while 76% see it as a significant barrier to growth. Targeted advertising is particularly concerning, with 73% indicating that losing this tool would negatively affect their operations.
The ability to collect, analyze, and utilize customer data has become a key factor in competitiveness. However, regulatory uncertainty surrounding AI and data privacy poses a challenge for innovation and progress. Balancing the need for data access with compliance demands will be critical for small businesses moving forward.
Policy Recommendations for a Pro-Business Environment
The report concludes with specific policy recommendations to address these challenges. It calls for modernizing and digitizing government regulations, eliminating the patchwork of state AI laws, and enacting smart national data privacy legislation. These measures aim to create a more predictable environment while fostering innovation and protecting businesses from unnecessary burdens.
Conclusion
Small businesses are harnessing technology to drive growth and remain competitive in today’s fast-paced market. From AI to cryptocurrency, these tools are transforming operations across all sectors. However, the complexity of regulations and data privacy concerns pose significant challenges. Policymakers must work closely with small business communities to create a regulatory framework that supports innovation without stifling growth. By doing so, they can ensure that technology continues to empower America’s entrepreneurial sector while addressing the legitimate concerns of businesses everywhere.