Jun 20, 2025 - Business

Small businesses are using AI, but not spending much

Scott Rosenberg

Illustration of a small robot wearing boxing gloves facing a larger robot. — Illustration: Lindsey Bailey/Axios

Small business leaders are beginning to embrace generative AI, but not enough to pay much for it, per a new survey of 1,000 businesses by U.S. Bank.

By the numbers: 36% of these small business owners say they're already using generative AI, and another 21% say they expect to start doing so over the coming year, the survey found.

Yes, but: Most small business use right now is in the free or low-cost entry level tiers — meaning AI leaders like OpenAI, Anthropic and Google can't expect a wave of revenue growth from this market just yet.

68% of the small business owners surveyed who are using generative AI say they're spending less than $50 a month for AI services.
The bank's survey defined "small business" as $25 million or less annual revenue and 99 or fewer employees.

Our thought bubble: The tech industry has been using a "hook them on free samples" tactic since the 1990s advent of the web.

AI makers are betting that today's free-tier user will graduate to higher-priced levels over time.

Go deeper: OpenAI is looking for new ways to pay its bills

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Small businesses are using AI, but not spending much

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