Paychex has released a comprehensive study on the rising adoption of artificial intelligence (AI) among small businesses in the U.S., revealing that a significant majority, 72%, of small business owners express a positive outlook on this technology. The survey, which sampled over 1,000 respondents, including 500 business owners and 500 HR leaders, shows a considerable commitment to AI with 65% of those surveyed having already integrated AI into their operations.
One of the most striking findings of the survey is that 66% of the respondents utilizing AI reported a boost in productivity. Notably, this productivity increase corresponds with several key benefits identified by business leaders: 44% mentioned cost savings, while 40% reported revenue growth linked to their AI efforts. Furthermore, 35% of those using AI indicated that it improved their recruiting processes, and 34% highlighted enhancements in employee satisfaction and customer acquisition.
The survey also highlights the sectors where AI implementation is most robust. For instance, 64% of businesses are successfully utilizing AI for customer support, followed closely by HR at 50%, and finance/accounting departments at 42%. This wide adoption points to a growing recognition of AI’s role in enhancing various operational facets.
“AI allows a business to punch way above its weight,” remarked Beaumont Vance, senior vice president of data, analytics, and AI at Paychex. “It’s a particularly great equalizer for small- and medium-sized businesses in an increasingly competitive landscape. Understanding and embracing AI’s full potential can boost efficiency, enhance decision-making, and deliver tangible ROI.”
Despite the optimism, the survey corresponds notable challenges in AI adoption. A significant 54% of participants cited concerns regarding data privacy and security as barriers to implementation. Additionally, 18% of the respondents reported difficulties stemming from poor data quality, underscoring the necessity of reliable data for effective AI deployment. Among those expressing concerns, 45% were skeptical about how technology companies handle their data, while 17% indicated a lack of trust in technology firms overall.
The survey also uncovered future investment plans among small businesses, with 72% indicating they plan to allocate at least $1,000 towards AI in the upcoming year. A notable 53% of this investment is expected to focus on human resources, emphasizing the importance of AI in enhancing HR functions. Furthermore, 44% of businesses intend to invest in recruiting efforts, while 41% plan to allocate funds to improve onboarding processes. Employee retention efforts will also see attention, with 32% of businesses earmarking funds for this purpose.
Overall, the findings from this Paychex survey reveal a transformative time for small businesses, where AI not only enhances operational efficiency but also aids in revenue generation, recruitment, and employee satisfaction. However, the path forward requires addressing pressing issues like data privacy and the quality of the data being utilized.
The survey data was collected from February 7 to 17, 2025, and was not weighted. Paychex, Inc. is a leader in human capital management, delivering a full suite of technology and advisory solutions spanning HR, employee benefits, insurance, and payroll services, serving over 745,000 clients across the U.S. and Europe.
