How Small Businesses Are Using AI in 2025

Artificial Intelligence (AI) is no longer exclusive to large corporations. In 2025, small businesses and entrepreneurs are increasingly adopting AI to enhance productivity, reduce costs, and drive growth. At Elevate Office, we see many of our tenants leveraging AI tools to streamline operations and remain competitive.

Ready to work smarter, not harder? AI offers small businesses real ways to save time, cut costs, and drive growth — here's what you should know.

Will AI Increase Productivity?

Absolutely.

AI tools can automate repetitive tasks, allowing business owners and employees to focus on strategic activities. For instance, AI-powered scheduling assistants can manage appointments, while AI-driven analytics can provide insights into customer behavior.

According to a report by the Information Technology and Innovation Foundation, AI-powered automation can increase productivity by up to 40%, giving small businesses a significant competitive edge. (Source)

Where Can AI Have the Biggest Impact for a Small Business?

AI can significantly impact several areas of small business operations:

• Marketing and Customer Engagement: AI tools like ChatGPT can generate content for social media, blogs, and email campaigns, helping you connect with customers faster and more consistently.
  
  
• Customer Service: AI-powered chatbots can handle common customer inquiries, providing instant responses and freeing up your team for more complex issues.
  
  
• Financial Management: AI can assist in budgeting, forecasting, and detecting fraudulent activities, leading to smarter financial decisions.
  
  
• Inventory and Supply Chain Management: AI algorithms can predict demand, optimize inventory levels, and streamline your supply chain.
  
  

By focusing on these areas, small businesses can enhance efficiency, customer satisfaction, and profitability.

AI Adoption Is Accelerating — And Small Businesses Are at the Forefront

AI isn't just a tool for large corporations anymore — small businesses are increasingly leading the way in AI adoption.

Recent Census Bureau data showed that very small businesses (those with only 1–4 employees) had the second-highest uptick in AI usage since late 2023, behind only the largest corporations. Their adoption rate jumped from 4.6% to 5.8% — a sign that even the smallest teams are embracing this technology to work smarter, not harder.

Younger entrepreneurs are especially driving the trend. According to American Express, 68% of Millennial and Gen Z small business owners are using AI, compared to 45% of Gen X and Boomers.

And it’s not just about saving time, it's about growing faster:

• AI-using businesses were more likely to upgrade their technology solutions.
  
  
• They are more focused on increasing market share and introducing new products or services.
  
  
• 50% of businesses using AI expected to expand their headcount this year, compared to just 36% of those not using AI.
  
  

AI has already helped small businesses stretch their budgets during busy seasons, powering social media marketing, ad campaigns, and seasonal hiring efforts.

As Anna Marrs, Group President at American Express, put it, "2025 will be defined by innovation, leaning deeper into artificial intelligence and social media as essential tools for reaching customers and future-proofing their businesses."

Where Can an Entrepreneur Start Implementing AI?

Starting with AI doesn’t require a complete overhaul. Here’s how to begin:

1. Identify Repetitive Tasks: Look for processes like data entry, customer inquiries, or scheduling that could be automated.
   
   
2. Explore AI Tools: Research AI solutions tailored for small businesses. Tools like Jasper AI (for marketing content) or QuickBooks (for AI-powered accounting) are great starting points.
   
   
3. Start Small: Implement AI in one area first. Track results, make adjustments, and expand over time.
   
   
4. Train Your Team: Invest time in showing your employees how to use AI tools effectively.
   
   

By approaching AI adoption strategically, you can maximize benefits with minimal disruption.

Will AI Save Time, Money, and Resources?

Yes — often dramatically.

AI can help businesses cut labor costs, reduce errors, improve customer service, and make better decisions through powerful data insights.

According to the U.S. Chamber of Commerce, nearly one in four small businesses have already adopted AI and are reporting stronger marketing performance and overall business health. (Source)

AI tools can transform operations by:

• Automating tasks that would otherwise take hours
  
  
• Providing smart recommendations for marketing, hiring, and finances
  
  
• Enabling small teams to punch far above their weight

AI Tools Recommended for Elevate Office Tenants

Here are a few AI platforms that can benefit small businesses at Elevate Office:

• ChatGPT: Content creation, customer support, brainstorming
  
  
• Jasper AI: Copywriting for ads, emails, and social media
  
  
• QuickBooks: AI-driven bookkeeping and financial forecasting
  
  
• Hubspot CRM: AI-powered customer relationship management with free and paid options
  
  
• Grammarly: AI-based writing and editing assistant
  
  
• Canva: AI design tools for marketing materials
  
  
• Zapier: AI automation connecting apps and workflows
  
  
• Otter.AI: Automatically transcribes meetings, interviews, or brainstorms — excellent for solo entrepreneurs or small teams.
  
  
• Durable.AI: AI website builder for small businesses.

These tools are affordable, user-friendly, and designed to help entrepreneurs and small teams save time and grow faster. You can even start free on most AI options. 

Final Thought:

Small businesses that embrace AI today will not only work more efficiently — they will future-proof their companies for tomorrow’s economy.

With the right tools and mindset, AI can be the ultimate growth partner for your business in 2025 and beyond.