Curated News
By: NewsRamp Editorial Staff
August 22, 2025
Small Biz Survey: Half Yet to Adopt AI, Costs Top Concern Amid Growth Signs
TLDR
- Small businesses adopting AI gain marketing advantages and reduce staffing needs by 26.6%, positioning early adopters ahead of the 45% not yet using AI.
- The Freedom Economy Index survey methodology tracks seven economic indicators, showing 57 out of 100 on the new State of Main Street Index indicating cautious optimism.
- Small business cautious growth investments and AI adoption can stabilize local economies and create better opportunities for communities amid inflation challenges.
- Elon Musk's proposed third party faces 3-to-1 opposition from business owners despite 91% supporting his federal budget balancing stance.
Impact - Why it Matters
This news matters because small businesses are a critical driver of the U.S. economy, employing nearly half of the private workforce. Their struggles with rising costs and slow AI adoption reflect broader economic trends, such as persistent inflation and technological transformation, which can affect job markets, consumer prices, and overall economic stability. Understanding these dynamics helps policymakers, investors, and the public gauge recovery prospects and prepare for shifts in employment and business practices, ultimately impacting everyday Americans through job opportunities, service availability, and economic resilience.
Summary
The August 2025 Main Street Business Survey, conducted by the Freedom Economy Index and involving companies like PublicSquare, RedBalloon.work, and the U.S. Christian Chamber of Commerce, reveals that only half of small business owners have begun exploring Artificial Intelligence (AI) in their operations. The top concern remains "rising costs," cited by 25% of respondents, followed by declining consumer demand at 22%. Despite these challenges, there are signs of cautious growth, with businesses shifting from defense to expansion mode and hiring on the rise, though qualified talent remains elusive.
Key findings include that 45% of business owners are not using AI, but among adopters, 32% report AI is most beneficial for marketing and advertising, while 26.6% say it has reduced staffing needs, indicating potential labor market impacts. The survey also highlights political sentiments, with the Trump Administration receiving high marks for economic handling, and Elon Musk's proposed third party viewed negatively by a 3-to-1 margin for America's economic future. Additionally, the new State of Main Street Index debuted at 57, signaling positive momentum and cautious optimism among small businesses. For more details, view the full results here.
CEOs Michael Seifert of PublicSquare, Andrew Crapuchettes of RedBalloon.work, and Krystal Parker of the U.S. Christian Chamber of Commerce emphasized themes of resilience, the need for stable policies, and the free market's role in recovery. The survey, now in its fourth year, provides a comprehensive snapshot of small business health, underscoring the ongoing challenges of inflation and the untapped potential of AI adoption in driving future growth and efficiency.
Source Statement
This curated news summary relied on content disributed by Newsworthy.ai. Read the original source here, Small Biz Survey: Half Yet to Adopt AI, Costs Top Concern Amid Growth Signs
