Chamber of Commerce: 80% of small businesses using AI hired more staff

The U.S. Chamber of Commerce’s 2025 Empowering Small Business report paints a striking picture: small firms across America are leaning into digital tools at an unprecedented pace, and that shift is reshaping hiring, operations and competitive dynamics. 

According to the report by the Chamber’s own Technology Engagement Center (C_TEC), the majority of small businesses now use at least one technology platform, while 80% say technology helped them navigate inflation, supply-chain disruption and tighter capital conditions over the past year. The report also surfaces an undercurrent of anxiety — most small firms worry that a patchwork of state AI and data-privacy rules could raise compliance costs and slow adoption unless policymakers act to harmonize standards.

Despite those concerns, another common fear around technology seems to less an issue than speculation would have us believe. 82% of small businesses who are using AI actually increased their workforce over the past year.

The Chamber and its research partners found that roughly six in ten small businesses now use AI platforms and 58 percent report using generative AI, up sharply from prior years. Meanwhile, nearly all respondents signaled intent to continue investing: the report finds that roughly 96 percent of small-business owners plan to adopt emerging technologies such as AI and cryptocurrencies.

Adoption is not uniform: the Chamber’s interactive state map and the report’s breakdown show wide geographic variation that matters for regional strategists and investors. Nebraska, for example, appears among the highest adopters, joined by Maine and Connecticut in the above the 70% category. Midwestern states compare well with coastal regions that many would assume be further ahead. While 60% of California businesses report using an AI platform, Illinois (67%) and Indiana (63%) exceed that mark, while Ohio (59%) and Michigan (58%) are ahead of New York. Unfortunately, Wisconsin (49%) and Minnesota (47%) lag behind on this metric.

The report interleaves those survey findings with business-level examples to show how practical gains are being realized on Main Street. Henry’s House of Coffee, a small coffee roastery in California, told the Chamber’s survey that AI tools have streamlined tasks such as product descriptions, search‑engine optimization and email marketing, freeing staff to concentrate on core production and customer relationships. 

But the rapid diffusion of AI raises governance and workforce questions. The substantial concern about a fragmented regulatory landscape, where a significant share of small-business leaders worry about regulation and uncertainty driving up legal and compliance costs, means  that while small firms reap efficiency gains, human oversight remains essential. 

Recent analysis from Thomson Reuters found that organizations that adopt a deliberate AI strategy are substantially more likely to realize revenue gains tied to the technology than those that do not. The Chamber’s report echoes that point and urges policymakers to prioritize national frameworks — on privacy and AI stewardship — that reduce compliance fragmentation and help small firms scale responsibly.

What does this mean for Midwest founders, operators and investors? 

The Chamber’s study is not a final word but a substantive data point in an accelerating story: technology is becoming a defining competitive axis for small businesses, and the regionally varied adoption documented in the report creates both opportunities for growth as well as policy challenges. The full report contains methodology, sectoral analyses and state-by-state tables that will be essential reading for policymakers, investors and operators who want to convert the survey’s headline numbers into practical strategies for Midwest communities and the broader small-business economy.