American Express released the latest Amex Trendex: Small Business Edition, a survey of over 1,000 small businesses fielded in July and August 2025.
The report reveals that small businesses are accelerating artificial intelligence (AI) adoption, with two-thirds (66%) now using AI, a 10-point increase from the May 2025 Trendex.
“Small businesses are increasingly embracing AI as a powerful driver of growth and innovation,” Ro Gutierrez, senior vice president and head of small business products at American Express, said. “The key to ongoing success will be identifying practical applications that create meaningful results for their teams, customers, and communities.”
October 2025 Trendex Findings
Small businesses see value and opportunity in AI, with the technology ultimately helping them focus on running and growing their business. Over nine-in-ten (91%) small businesses say that AI helps them make more confident decisions for their business, and 89% say that AI has helped them organize their data and insights so they can focus on strategy and execution.
Yet, small businesses don’t feel equipped to use AI to its full potential: 88% admit that they are still learning how to use AI effectively.
As they accelerate their investments in AI, many small businesses are seeing tangible results. Nearly three quarters (74%) of small businesses using AI say that they see a positive ROI from their investments in the technology.
- Small businesses reported employee productivity (51%) and reduced errors (48%) as areas where they see the greatest return on their investment in AI.
- Over six-in-ten (64%) small businesses report using AI-powered chat bots for customer service, and half (32%) say that chat bots have increased customer service satisfaction for their business.
Even as AI improves employee productivity, small businesses still see plenty of room for development: 81% of small businesses who use AI say they wish their employees were more skilled in using it.
- To address this gap, small businesses are investing in training their employees. Nearly a third (31%) are investing in resources like classes and training to help improve their employees’ AI skills, and of those who are not currently investing in those resources for their employees, 36% plan to do so in the future.
Sentiment about AI differs across generations, with younger small business owners leading the AI charge. Seventy-two percent (72%) of Gen-Z and Millennial respondents say that their business is currently using AI, compared to just 59% of Gen-X and Baby Boomer respondents.
- While younger generations are still ahead, older generations are catching up, accelerating AI adoption at a faster rate. Forty percent (40%) of Gen-X and Baby Boomers who already use AI say that they started using it in the past year. By contrast, just 29% of Millennials and Gen-Z who already use AI started using it in the past year.
- Younger AI adopters were more likely to report business growth compared to older generations. Seventy one percent (71%) of Millennial and Gen-Z respondents say they’ve seen an increase in business growth since using AI, compared to 43% of Gen-X and Baby Boomer respondents.
- As small businesses set out to build their teams, younger generations are prioritizing candidates with AI skills. Sixty-four percent (64%) of Gen-Z and Millennial respondents said that it’s important that new employees have experience with AI tools or programs, compared to 46% of Gen-X and Baby Boomers.
Despite many small businesses adopting AI, a third remain hesitant: 33% of surveyed small businesses say that their business does not currently use AI.
- Cost, trust, and perceived lack of relevance are driving their resistance to begin using AI. Over six-in-ten (61%) of small businesses not using AI agree that AI tools are too expensive for their business. Others reported that AI wouldn’t be helpful to their business (35%), expressed concerns over security (23%), or said that they don’t trust it to be accurate (21%).
