US Small Businesses Embrace AI, But Technical Gap Persists
AI adoption among rural US small businesses jumped to 80% by 2026, but a lack of technical expertise hinders deeper integration, per Goldman Sachs.
The landscape of American entrepreneurship is undergoing a digital transformation. According to a recent report by Goldman Sachs, there has been a dramatic surge in AI adoption among US small businesses, particularly in rural areas, though a significant "expertise gap" continues to prevent these owners from fully harnessing the technology's potential.
The Rural AI Explosion
One of the most striking revelations in the report is the rapid uptake of artificial intelligence in rural settings. AI adoption among rural small business owners skyrocketed to 80 per cent in 2026, a massive leap from just 47 per cent in 2024.
This trend is even more pronounced among graduates of the Goldman Sachs 10,000 Small Businesses programme. The data shows a steady climb in AI usage within this group: starting at 56 per cent in July 2024, rising to 77 per cent in 2025, and finally reaching 86 per cent by 2026.
Chatbots Lead the Way, Advanced Tools Lag
While many are using AI, the way they are using it reveals a preference for simplicity over complexity. The report highlights a heavy reliance on accessible, standalone tools:
- 86 per cent of AI-using small business owners rely on generative AI chatbots such as ChatGPT, Claude, and Gemini.
- 54 per cent utilize AI features embedded in software they already use, such as Microsoft 365 Copilot and QuickBooks AI Agents.
However, the "deep dive" into AI remains rare. The adoption of sophisticated tools is significantly lower, with only 18 per cent using agentic AI, 19 per cent employing AI coding tools, and a mere 12 per cent implementing custom-built solutions. This suggests that while the surface-level adoption is high, deeper technological integration is still in its infancy.
Cost and Frequency of Use
For most small business owners, AI is now a daily habit that doesn't break the bank. The report notes that 63 per cent of users engage with AI on a daily basis. Furthermore, 73 per cent of these businesses are either utilizing free versions of these tools or spending less than $100 per month.
The Rural vs. Urban Divide
Despite the rise in numbers, rural business owners are not utilizing AI in the same way as their urban counterparts. A notable disparity exists in Customer Relationship Management (CRM), where only 16 per cent of rural owners use AI compared to 28 per cent of non-rural owners.
The report further observes that rural entrepreneurs are less focused on using AI to target new customers, reach wider audiences, or compete directly with larger corporations, highlighting a need for better education to help them realize the full strategic benefits of the technology.
Industry Trends: Services vs. Products
The report also identifies a clear split based on the type of business:
Service-Based Businesses
Businesses that provide expertise and labor have been faster to adopt AI. They are more likely to describe AI as being "fully integrated" into their core operations and report higher rates of daily usage.
Product-Based Businesses
Companies selling physical or digital products are catching up more slowly. A larger portion of these businesses are recent adopters, having started their AI journey within the last 12 months, focusing primarily on immediate operational needs.
"Access to education remains critical to helping rural small business owners fully realize the benefits of AI."