Citizens released its Q4/26 Business Pulse survey, which found that U.S. small business owners and business decision-makers are entering the final months of the year with their strongest revenue outlook of 2026, higher planned spending on technology and AI, and steady hiring plans over the next three months.
The findings show how small businesses are planning for growth heading into Q4/26: many expect stronger sales, more are directing dollars toward technology and most are choosing to maintain or add staff rather than reduce headcount. Fifty-four percent of respondents expect revenue to increase over the next three months, the highest level recorded in 2026, up from 50% in Q3/26, 48% in Q2/26 and 43% in Q1/26. Technology spending is also rising, with 30% planning to increase spending in that area, including AI tools, up from 23% in Q3/26.
“Contrary to some headlines, we are not seeing AI fatigue. In fact, we may still be in the early innings of AI helping small businesses play bigger than their size,” Mark Valentino, head of business banking at Citizens, said. “A business owner who becomes a super user of this technology can compete like a much bigger company, and that’s showing up in hiring plans.”
AI is changing how small businesses use outside support. Among businesses using AI regularly across multiple functions, 94% have reduced or eliminated spending on at least one type of external service, most commonly marketing services (60%), data analysis or reporting (39%) and bookkeeping or accounting (38%). Those same companies are also more likely to plan staff increases, with 44% expecting to add full-time employees compared with 22% of businesses overall and 8% of businesses with no AI adoption plans.
AI use also tracks with broader business optimism. Seventy-four percent of businesses using AI regularly across multiple functions expect revenue to increase in the next quarter, compared with 54% overall. Those extensive AI users are also more confident in the economy, with 51% saying they are extremely or very confident, nearly double the 29% overall figure.
