American Express released its latest Amex Trendex: Small Business Edition report, revealing that small businesses across the U.S. are adjusting strategies to keep pace with changing customer expectations and an evolving market environment.

The survey, conducted online from March 24–30, 2025, polled 1,108 financial decision-makers at small businesses. It found that 92% of respondents expect their customer base to shift this year, and 75% believe those changes will be more significant than in previous years.

To meet these challenges, small businesses are prioritizing strategic adjustments, launching new products or services, and increasingly leveraging artificial intelligence. While only 56% currently use AI, 86% of those who do say it helps them make more confident decisions. Benefits cited include fewer errors (45%), increased operational efficiency (42%), improved employee productivity (42%), and higher sales (41%).

Despite this optimism, AI adoption is still in its early stages. Nearly half of users began using it within the past year, and 52% feel they may have adopted it too early. Many also express ongoing concerns over data security, costs, and employee training time.

“Five years since the COVID-19 pandemic forced small businesses to pivot, they are embracing a change mindset and customer-first innovation to drive growth,” said Ro Gutierrez, senior vice president and head of Small Business Products at American Express.

The report also highlights how reflections on the pandemic continue to shape business decisions. Knowing what they know now, 87% of small business owners said they would have taken different steps in 2020, including building cash reserves and strengthening contingency plans.

Looking ahead, small businesses cited rising labor costs (42%), preparing for economic uncertainty (40%), and the need to modernize with AI (38%) as defining themes for the next five years.

Customer engagement remains a top priority, with 91% saying it is the most important part of running their business. While 93% feel they understand their current customers, 78% are actively shifting strategies to attract new types of clientele—particularly more premium customers and those in local markets.

The Amex Trendex is a recurring survey that tracks small business sentiment, examining the challenges and opportunities shaping the sector. The margin of error for this survey is ±3 percentage points.