Is AI Use Increasing Among Small Businesses?

Recent research shows that advanced technology adoption and use are concentrated in large firms. This pattern also applies to artificial intelligence (AI). Evidence from the U.S. Census Bureau’s Annual Business Survey for the years 2017 and 2018 indicates that AI use in producing goods and services rises with firm size (Zolas et al., 2020 and Acemoglu et al., 2022). However, this pattern may be changing in the wake of recent advances in generative AI, which may have a disproportionate impact on small firms’ adoption and use of AI.