New Study Finds Small Business Leaders Rely on Digital Tools and AI to Succeed in Today’s Uncertain Economy

WASHINGTON (March 13, 2025) — A new study from the Connected Commerce Council (3C) found that small and medium-sized businesses (SMBs) are using digital tools to manage economic uncertainty and compete with larger companies. The report also showed that SMBs’ continued success depends on access to digital tools — including those powered by data and artificial intelligence (AI) — and that they could be harmed by overreaching policy proposals. 

3C commissioned the Data Catalyst Institute (DCI) to survey 4,000 SMB leaders across the U.S. and found that 84 percent of SMB leaders rely on digital tools to succeed in today’s economy, with two-thirds calling them crucial for tackling inflation in 2025. Digital ads are particularly popular, with 64 percent of SMBs utilizing them. Of those, 75 percent say digital ads help level the playing field against bigger competitors. In addition, the majority (51 percent) of SMB leaders already use AI, and 82 percent say their business either uses AI or they are “AI curious” — meaning they plan to use it or want to learn more.

Among SMBs using digital advertising, most (92 percent) use personalized ads, which are powered by non-sensitive customer data. Seventy percent say personalized ads efficiently attract new customers, and 71 percent warn that restricting data collection would hurt ad effectiveness. Although data-powered digital advertising is important to SMBs’ success, leaders also aim to handle consumer data with care, as 66 percent consider data security and customer privacy a big concern for their business.

“Leveraging new technology is important for small business success, but so is using this technology in a safe, secure way,” said Dr. Mark Drapeau, editor-in-chief at DCI. “To ensure new technology and digital tools remain available to small businesses, lawmakers must put in place policies that promote the technology’s benefits while also protecting consumer privacy.” 

Significantly, the study also found that SMB leaders who adopt AI tools quickly see benefits. Sixty-four percent of SMB leaders believe AI tools help level the playing field, and 52 percent say they are critical to their success right now. Looking ahead, 63 percent are excited by AI tools’ potential to help grow their business, and 61 percent expect these tools will help expand their business into new markets. SMB leaders also anticipate more widespread benefits of AI: 59 percent believe AI will positively impact the U.S. economy, and 54 percent believe it will help society as a whole. 

At the same time, SMBs also understand the importance of AI safety. Among SMB leaders using the new technology, 84 percent say privacy, trust, and safety are top priorities when it comes to AI.

“It’s encouraging to see small business leaders leveraging digital tools and AI technology to grow, compete, and succeed,” said Rob Retzlaff, 3C’s Executive Director. “In today’s uncertain economy, it’s more important than ever that these digital tools remain accessible and effective for small businesses.”