Small Businesses Turn to AI to Tackle Inflation and Rising Costs

A new report from Bluevine, based on a survey of more than 760 small business owners across the United States, highlights how artificial intelligence (AI) is helping firms respond to inflation and rising operational costs. The findings show that while economic pressures remain the top concern, a majority of owners hold a favourable view of AI, with many using it for marketing, data analysis, and financial decision-making.

Small businesses are operating in one of the most uncertain financial climates in recent memory. With inflation at 71.4% and rising operational costs affecting 62.4% of owners, entrepreneurs continue to look for new ways to sustain growth and manage pressures on their finances. 

The combination of rising prices, higher interest rates, and non-transparent banking fees is forcing owners to rethink their financial and operational strategies.

Artificial intelligence (AI) is emerging as one of the most discussed solutions. The technology is increasingly viewed as a tool not only to improve efficiency but also to provide actionable insights that help businesses adapt to economic shifts. 

According to a new study of more than 760 small business owners, 61.3% hold a favourable view of AI, suggesting a growing readiness to adopt it in areas such as marketing, data analysis, and financial management.

Optimism and attitudes towards AI

The research shows a clear link between economic optimism and a positive attitude towards AI. Among business owners who feel optimistic about the economy, 70.6% express a favourable view of AI. 

This figure drops to 43% among those with a pessimistic outlook. Confidence in the economy appears to encourage investment in new technologies, while financial uncertainty makes owners more cautious.

This confidence gap highlights how AI adoption often depends on stability. Owners who feel secure about the future are more likely to experiment with AI tools, while those struggling with resources may delay innovation, even though technology could help them bridge the gap with larger competitors.

Pressure to innovate and embrace change

Half of all small business owners report feeling pressure to adapt in response to AI. The survey finds that 44.4% of owners who view AI positively also feel a high urgency to innovate. In comparison, only 11.3% of those with a negative perception feel the same. This suggests that a business owner’s mindset plays a key role in shaping how quickly they respond to technological change.

Those who see AI as an opportunity are preparing to integrate it into their operations, while others remain cautious and prefer to maintain traditional practices. The divide may influence which businesses gain a competitive edge in the near future.

Economic concerns outweigh technology risks

Inflation and operational costs are the most significant challenges for small businesses, cited by 71.4% and 62.4% of respondents, respectively. In contrast, concerns about technological risks such as cybersecurity and AI risks stand at 24.4%.

For many business owners, the immediate priority is financial survival, covering payroll, rent, and supplies, rather than addressing potential digital threats. While security is not ignored, the more urgent need is managing the day-to-day financial impact of rising costs.

Impact on employment

Despite speculation that AI could lead to widespread job losses, most small business owners do not plan to reduce staff as a result of AI. The survey shows that 59.9% have no plans for AI-driven layoffs. The department most frequently considered for cuts is marketing, but this is only mentioned by 16% of respondents.

Instead of being used as a replacement for workers, AI is generally seen as a way to support employees by automating repetitive tasks and allowing teams to focus on higher-value work such as customer service and sales.

AI adoption in marketing, sales, and data analysis

Small businesses are using AI most frequently in marketing (39.4%) and data analysis (32.6%). Many owners now rely on AI to process large amounts of information and generate insights that were once inaccessible to smaller firms. Bluevine’s internal data reflects this shift, showing a 436% increase in the use of ChatGPT and a 169% increase in other AI productivity tools in recent months.

This suggests that AI is moving beyond simple automation to become a trusted tool for solving complex problems, helping owners make better decisions and expand their customer reach.

Financial management and data security concerns

When it comes to adopting AI for finance, caution remains strong. The survey finds that 23.3% of business owners see data security as the main barrier, followed by concerns over accuracy and reliability (16.6%).

Financial data is highly sensitive, and even a single breach could damage a business’s reputation. As a result, owners require clear assurances about security before relying on AI-driven financial platforms.

Growing AI adoption across sectors

While AI adoption is often associated with technology firms, the survey shows strong interest across traditional industries. In the construction and trades sector, 66% of owners report that they are either already using AI or planning to do so. Adoption is even higher in health and wellness (86.5%), food and beverage (80%), and retail (70.1%).

This indicates that AI is not limited to digital-first businesses but is proving useful in practical, hands-on industries as well.

Future of financial operations

Looking ahead, 84.8% of small business owners expect AI to impact or transform financial operations in the next two to three years. Early adopters are likely to gain an efficiency advantage by quickly integrating AI into budgeting and forecasting, while more cautious owners may hold back until the technology matures further.

At the same time, frustrations with traditional banking remain strong. High interest rates are cited by 26.3% of respondents as a key pain point, while 24.1% say they would switch providers over excessive or non-transparent fees. These pressures could drive greater interest in AI-driven financial platforms that offer transparency and efficiency.

Practical Guidance for Small Businesses

To navigate these trends, small businesses can take several steps:

• Evaluate your outlook on technology: A positive perspective often correlates with greater readiness to innovate.
• Focus on growth-driven applications: AI is delivering the most value in marketing, sales, and data analysis.
• Review financial partnerships: Business owners remain frustrated with high fees and interest rates, suggesting a need to regularly assess banking providers.
• Adopt modern financial tools: AI-powered platforms can help with expense tracking, cash flow analysis, and financial planning.

The small business community faces significant financial pressures, but many are choosing to explore AI as a way to manage costs and unlock new opportunities. While concerns about security and reliability remain, the majority of owners expect AI to play a major role in shaping financial operations in the years ahead.

The findings highlight a shift in mindset: small businesses are beginning to see technology not as a threat but as a practical partner in overcoming economic challenges and driving long-term stability.