AI Adoption Among Small Businesses Soars by 41% in 2025, Reveals New Thryv Survey

A new survey conducted by Thryv reveals a significant rise in artificial intelligence (AI) adoption among small businesses, with a 41% increase in usage from 2024 to 2025. The survey highlights how AI is becoming integral to marketing, customer service, and operations, enabling small businesses to thrive amidst economic uncertainty.

The latest annual AI and Small Business survey, conducted by Thryv, has shed light on the accelerating role of artificial intelligence in small businesses. AI adoption surged by 41% in 2025, as the majority of small business owners now consider AI an essential part of their strategy for reaching new customers and remaining competitive. This substantial growth underscores the increasing reliance on AI as a critical tool in enhancing efficiency and agility, allowing small businesses to operate with the effectiveness of larger corporations.

As small businesses face an unpredictable economy, AI is proving to be a game-changer. The survey, which interviewed 540 small business decision-makers in May 2025, reveals that small businesses are not only using AI but are fully embracing it across various functions, from marketing to customer service. With the ability to save time, reduce costs, and drive innovation, AI is helping small businesses make strides towards sustainable growth and success.

The rapid rise of AI in small businesses

In just one year, small business AI adoption has seen a striking jump from 39% in 2024 to 55% in 2025. This remarkable increase signifies a major shift in how small businesses are leveraging technology to streamline operations and improve customer experiences. 

According to the survey, businesses with 10 to 100 employees have led the charge, with adoption rising from 47% to 68%. Younger business owners and those in the professional services and retail sectors are at the forefront, embracing AI’s ability to enhance marketing, customer service, and operational efficiency.

Small businesses now view AI as essential to their marketing efforts, with content generation being the most common use case. According to the survey, a significant 80% of respondents believe AI is crucial to reaching new customers, while 78% say it is necessary to meet rising consumer expectations for speed and personalisation. The survey results show that businesses are keen on using AI to stay competitive, even as concerns about data security continue to decrease.

Key benefits for small businesses using AI

Small businesses are reaping considerable benefits from their AI investments. Among current users, 63% utilise AI daily, with applications spanning data analysis, content creation, and customer engagement. The survey reports that 62% of small businesses use AI for data analysis, 55% for content generation, and 46% for customer engagement tools like chatbots. These tools are allowing businesses to engage with customers in real-time, automate routine tasks, and improve overall service delivery.

Moreover, AI is freeing up time for small business owners. Over 58% of respondents state that AI saves them more than 20 hours per month, which they can reinvest into growth-focused activities like process improvement, customer acquisition, and innovation. 

Additionally, 66% of businesses report saving between $500 and $2,000 each month, with these savings often directed towards further technological upgrades, marketing campaigns, and infrastructure development.

AI’s impact on staffing levels and employee relations

The influence of AI is not limited to operational efficiency. Two-thirds of small businesses report that AI reduces pressure on themselves and their staff, with 46% indicating it will reduce their dependence on employees. While only 14% believe AI could replace human workers, a significant 42% are open to the idea if the right conditions are met. As AI adoption continues to rise, its potential to reshape staffing dynamics is becoming increasingly evident.

The rise of AI also appears to be helping small businesses navigate economic uncertainty. According to the survey, 41% of small businesses believe that AI will assist them in coping with challenges, with another 40% uncertain but hopeful about its potential impact.

The future of AI in small businesses

AI adoption is expected to continue its upward trajectory, with small businesses across various industries seeing the technology as an invaluable tool for survival and growth. As AI evolves, businesses are not only using it to streamline operations but also to outpace competitors and connect with customers in more meaningful ways. 

Grant Freeman, President of Thryv, notes, “Small businesses have moved beyond wondering if they should use AI; they’re determining how fast they can implement it.”

With a growing recognition of AI’s ability to transform businesses, small companies are embracing the future of work and technology. As AI becomes an integral part of their strategy, the possibilities for small businesses are vast, and the road ahead looks promising for those ready to innovate.

About Thryv

Thryv Holdings, Inc. (NASDAQ: THRY) is the provider of the leading sales and marketing platform designed to help small businesses attract new and repeat customers. Thryv’s software offers SMBs everything they need to manage their day-to-day operations and grow efficiently, with AI-supported marketing and automation tools designed to enhance business agility and competitiveness.

Over 100,000 businesses globally use Thryv to manage their customer relationships, operations, and growth strategies.