Embracing the Future: How AI is Empowering Main Street

When we think of AI, the mind often wanders to sprawling Silicon Valley tech campuses, massive server farms, and futuristic research laboratories. For too long, the narrative surrounding AI has been one of exclusivity — a tool reserved for multinational corporations with endless budgets and armies of software engineers.

But when I walk down Main Street, a very different, vastly more inspiring story is unfolding. America’s small businesses, the engines of our economy, are actively driving the AI revolution. Across the country, mom-and-pop shops, local manufacturers, and first-time entrepreneurs are utilizing AI to save time, boost productivity, and compete on a level playing field with their largest corporate counterparts.

At the U.S. Chamber of Commerce, the findings from our fourth annual report, 2025 Empowering Small Business Technology Report, are nothing short of remarkable. The adoption of AI among small businesses is skyrocketing. More than half (58%) of all small businesses report using generative AI, more than double the usage in 2 years. This is a fundamental shift in how small enterprises operate.

What does this look like in practice? It looks like the local retailer is using AI chatbots to handle after-hours customer service inquiries, ensuring their customers always get a quick response. It looks like the rural manufacturer is using automated supply chain tools to track inventory, forecast demand, and navigate global logistical challenges. And it looks like the family-run bakery is using generative AI to craft marketing emails and social media campaigns that rival those of corporate marketing departments. Over half of the small businesses utilizing 6 or more tech platforms report steady growth, proving that those who fully embrace these digital tools are outperforming their peers.

Nowhere is the impact more tangible than in the economic resilience of Main Street employers. In recent years, small businesses have battled relentless headwinds — from historic inflation and supply chain disruptions to acute labor shortages. Thankfully, 4 in 5 small businesses report that technology platforms help them maintain profitability without raising their prices.

Consider Henry’s House of Coffee, a family business roasting beans in downtown San Francisco since 1965. Utilizing tools like ChatGPT, third-generation co-owner Hrag Kalebjian designed a system that uses software and sensors to spray water on coffee beans, preventing static buildup and streamlining the bagging process. Using Gemini, Hrag is increasing the efficiency of his marketing, leading to a stronger bottom line.

There is also a persistent, but largely unfounded, fear that AI will destroy jobs. Our data tells the exact opposite story. 82% of small businesses that use AI increased their workforce over the past year. Furthermore, 85% of small business AI users reported increased sales, and 84% reported increased profits.

Far from replacing human workers, AI is augmenting them, taking over repetitive administrative tasks so employees can focus on high-value, creative, and interpersonal work.

Yet, for all this incredible momentum, a readiness gap remains. Many small businesses feel uncertain about how to get started. They list concerns about the quality of tools, the cost of implementation, and a lack of knowledge.

This May, Vistage celebrates National Small Business Month in partnership with the U.S. Chamber of Commerce. Here from members, experts and thought leaders on what it takes to lead small businesses with confidence

Training, trusted information, and tailored support can make the crucial difference between hesitating at the starting line and running ahead with confidence. That is exactly why the U.S. Chamber of Commerce and the U.S. Chamber of Commerce Foundation, with generous support from Google.org’s AI Opportunity Fund, recently launched Small Business B(AI)sics. This national training initiative is designed to empower 40,000 small businesses over the next 3 years to harness the full potential of AI. By offering free online and in-person training, we are equipping localized entrepreneurs with the skills to save time, grow revenue, reach new customers and strengthen local economies.

While we are working hard to bridge the education gap, another challenge looms: government overregulation. As policymakers in Washington and state capitals across the country scramble to understand AI, there is a distinct risk that heavy-handed regulatory barriers could stifle the very innovation that is boosting small businesses.

Our survey reveals a growing anxiety among entrepreneurs regarding regulatory interference. Nearly two-thirds (65%) of small business owners worry that changes to technology regulations and a patchwork of state laws on AI and data privacy will expose them to crushing compliance and litigation costs. Indeed, 77% of small businesses using AI report that limits on these technologies would negatively impact their growth, everyday operations, and bottom line.

When state legislatures propose laws requiring businesses to navigate complex AI disclosures, risk assessments, and rigid human-oversight mandates, small business owners cannot afford the legal costs to defend themselves or simply to keep up with a patchwork of state laws and regulations.

To ensure that America’s small businesses continue to reap the profound benefits of the digital economy, lawmakers must act deliberately. Congress must prioritize two critical needs. First, we need smart, comprehensive national data privacy legislation that preempts the chaotic patchwork of state laws — delivering a single, clear, and predictable set of rules that small businesses can follow without armies of lawyers.

Second, any approach to AI regulation must be risk-based and gap-filling — targeting real harms where existing laws fall short, rather than imposing one-size-fits-all mandates that would suffocate the very technological advancement that is lifting Main Street.

AI holds the power to unlock unprecedented growth for American small businesses. It is an equalizer, a growth engine, and a shield against economic instability. Small business owners across the country are eager to seize this technology, and through initiatives like Small Business B(AI)sics, we are providing the roadmap to do just that.

Now, it is up to all of us — policymakers included — to give them the runway they need to thrive. If we can keep the barriers to entry low and the spirit of innovation high, the future of American small business is incredibly bright.

0 views