Post sponsored by BILL
It’s long been said that being an entrepreneur can be a lonely existence. Small business owners work hard, often leaving little time for a personal life. They crave solutions that save them time so they can carve out some downtime.
According to BILL’s 2025 State of Financial Automation Report, many have turned to automated solutions, especially artificial intelligence (AI). BILL’s report reveals that 73% of those surveyed say they’ve already incorporated AI into how they run their businesses, and 83% expect their dependence on AI will continue to grow over the next two years.
In its blog, BILL says the annual survey, conducted by the SMB Group, “reveals a significant shift in how businesses view and use AI technology, particularly in financial operations.” Ken Moss, BILL’s chief technology officer, says, “AI is transforming businesses of every size and in every city. This data shows us the conversation around AI has shifted from ‘if’ to ‘how.’ It’s an exciting moment for businesses as more and more of them leverage automation and AI to help drive growth, unlock richer insights, drive better decision-making, serve their customers, and succeed.”
In AI We Trust
According to the 2025 State of Financial Automation Report, 67% of SMBs say “AI provides more benefits than drawbacks, such as improved decision-making and better efficiency.” Among smaller businesses with 10 to 49 employees, 63% agree that AI primarily benefits their companies.
SMBs have embraced AI, relying on it like a trusted advisor or BFF. Indeed, 85% are enthusiastic about using AI. And they trust it: altogether 90% of SMBs trust AI with their financial operations. Of that group, 40% have a “high level of trust,” 50% have a “moderate level of trust,” and a mere 2% don’t trust AI with their financial operations.
However, smaller businesses are slower to adapt. Only 33% of small businesses expressed a high level of trust in AI, and 13% say their level of trust is “low.”
Plus, most believe it’s crucial to integrate AI with their financial operations: 85% of SMBs want vendors to embed AI capabilities in their financial applications. Moss notes that AI is “all about using technology to empower people to do more and do it better.”
BILL recognized AI’s potential years ago, and as an early adopter, “leveraged the technology to help businesses streamline their financial operations.” BILL’s AI-powered engine enables the company to “make solutions easier to use, more automated, and increasingly predictive.” AI also gives BILL enhanced capabilities, such as automated invoice matching, increased fraud prevention capabilities, and intelligent payment recommendations. All this helps SMBs “thrive in the face of economic uncertainty.” As Manoj Bhutani, the chief customer officer at Furey, says, “BILL AI auto-reads, extracts data, and enters it all automatically. It’s a huge time saver and maintains data accuracy.”
What benefits do SMBs say AI can contribute to their financial operations?
- Analyze data for better decision-making: 43%
- Provide better analysis for planning and forecasting: 39%
- Summarize information from different data sources: 37%
- Grant access to information for faster decision-making: 36%
- Streamline/eliminate repetitive tasks: 34%
- Free employees to do higher-value work: 34%
- Help to spot potential problems/discrepancies: 30%
- Provide recommendations: 22%
- Create reports: 20%
Sarah Sanders, the vice president of accounting at Repurpose, agrees with the benefits she gets from using BILL’s AI capacities, saying, “The AI capability from BILL has saved the finance team two days out of every work week. The AI pulls all the information for you, [making] it much easier. You just review. It’s easier to cross-reference than to actually key everything in.”
AI Concerns
That’s not to say SMBs think AI is beyond reproach.
Hesitation to use AI stems from data privacy, security, and accuracy concerns. Respondents who are hesitant to use AI in their financial operations indicated that information security, incorrect/misleading information, and unintended negative consequences are their chief concerns. A lack of understanding about AI also fuels skepticism, as do high-profile cases of misuse, such as misinformation or surveillance.
However, financial solution vendors use AI for practical applications, like automating invoice coding, receipt matching, and financial planning. By clearly explaining their AI models, data usage, and security measures, vendors can build trust and help SMBs feel more confident in adoption.
Why SMBs hesitate to use AI for financial operations:
- Concerns about data privacy/security: 38%
- AI may produce incorrect or misleading information: 35%
- Concerns about unintended negative consequences: 30%
- Lack the technology infrastructure needed to implement AI: 27%
- Lack the skills needed to implement AI: 25%
- AI may lead to job cuts: 25%
- Unsure of the ROI that AI will provide: 24%
- Lack of government regulation/safeguards: 24%
- Lack of understanding of how AI works: 24%
- Concerns that AI will reduce wages: 21%
- Takes too long to achieve value from AI: 21%
SMB Challenges
The 2025 State of Financial Automation Report reveals several other financial management challenges that SMBs face today:
- Managing business in an inflationary environment: 42%
- Managing cash flow volatility: 34%
- Payment fraud/security: 30%
- Difficulty attracting and retaining talent: 29%
- Securing customer and company data: 27%
- Difficult to get the insights we need for decision-making: 26%
- Ensuring regulatory compliance: 25%
- Reskilling staff for new requirements: 24%
- Takes too long to create financial reports: 22%
- Incomplete, erroneous, and/or conflicting financial data: 22%
- Too much time/effort required to close the books: 17%
As you can see, inflation tops the list of SMB challenges. Of those surveyed, the percentage citing inflation as a top concern spiked to 62% this year from 46% in 2024. Not surprisingly, small businesses were more likely to rank inflation as a bigger concern than larger companies.
Two other financial management challenges became pressing issues—managing cash flow volatility and payment fraud/security, which both increased by five percentage points year-over-year.
Impact of Macro Trends
Inflation is also the primary macro trend worrying SMBs:
- Inflation: 62%
- Economic uncertainty: 43%
- Cybersecurity: 42%
- Supply chain interruptions: 40%
- Government/regulatory policies: 37%
- Talent shortage: 32%
- Political uncertainty: 24%
- Extreme weather/climate change: 21%
In this year’s State of Financial Automation Report, cybersecurity threats rose to third place on the list of concerns. The more businesses rely on digital tools, the more vulnerable they become to cyberattacks.
Fortunately, 92% of those surveyed say they’re “very” or “somewhat” prepared to ride out these macro trends. The downside is that last year 51% said they were very prepared; this year, only 37% feel that way.
This drop in preparation confidence shows that SMBs currently face more unknowns, complexity, and risk. To stay resilient, the State of Financial Automation Report suggests SMB “revisit their strategies, strengthen contingency plans, and invest in resources that help them stay nimble in an uncertain environment.”
Act Now
Underscoring his company’s message, in a recent announcement launching several new innovative financial solutions, “to give businesses more visibility, efficiency, speed, and control of financial operations,” BILL’s CEO and founder, René Lacerte, says, “The time to automate is now. Reimagine what’s possible when you have control and visibility of your cash flow. Leverage AI to make your organization smarter and more efficient. Empower your teams with the financial clarity and confidence they need. And reinvent how you make strategic financial decisions.”
About the Author
Rieva Lesonsky is the owner of SmallBusinessCurrents.com and has been covering small businesses and entrepreneurship for over 30 years. Get more insights about business trends by signing up for her free Currents newsletter.
