A new survey from Paychex reveals that small businesses across the U.S. are increasingly adopting artificial intelligence (AI) to enhance productivity, revenue, and workforce development. According to the study, which surveyed over 1,000 business owners and HR leaders, 72% of small businesses have a positive outlook on AI, despite ongoing concerns about data accuracy, security, and privacy.
Among businesses currently using AI, 66% reported increased productivity as a key benefit. Additional advantages cited by respondents included cost savings (44%), revenue growth (40%), improved recruiting (35%), higher employee satisfaction (34%), and enhanced customer acquisition (34%).
The study also found that 82% of respondents believe AI is helpful to their business, and 76% expect it to have a moderate to significant impact over the next five years. Currently, 65% of surveyed businesses report using AI, with its adoption most prevalent in customer support (64%), finance and accounting (42%), and HR functions (50%).
“AI allows a business to punch way above its weight,” said Beaumont Vance, Paychex senior vice president of data, analytics, and AI. “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 its benefits, the survey highlights challenges associated with AI implementation. One in five (18%) respondents reported difficulties due to poor data quality, and 53% stated that having accurate data would improve their trust in AI tools.
Data security and privacy concerns also remain significant. According to the survey, 54% of businesses cited data privacy and security as major obstacles to AI adoption. Among them, 45% expressed concerns about how technology companies use their data, while 17% indicated they do not trust technology companies with their data.
Looking ahead, 72% of small businesses plan to invest at least $1,000 in AI within the next year, with human resources emerging as the top investment area. The survey found that 53% of respondents plan to direct AI investments toward HR functions, including recruiting (44%), onboarding (41%), and employee retention (32%). These findings underscore the growing role of AI in human resources, from talent acquisition to long-term employee development.
The Paychex survey was conducted online between February 7 and 17, 2025, with responses collected from 1,129 business owners and HR leaders. The results were not weighted.
Image: Paychex
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