According to a new study from Paychex, Inc., an industry-leading human capital management (HCM) company delivering a full suite of technology and advisory solutions in human resources, employee benefit solutions, insurance, and payroll, small businesses across the U.S. are embracing artificial intelligence (AI) as a powerful tool to enhance efficiency, revenue, and workforce development. While concerns about data accuracy, security, and privacy persist, survey responses from 500+ business owners and 500+ HR leaders found that the business impact of AI is undeniable – 72% of small businesses have a positive outlook on the technology.
Of the survey respondents using AI today, 66% report increased productivity, and many cite cost savings (44%), revenue growth (40%), improved recruiting (35%), higher employee satisfaction (34%), and improved customer acquisition (34%) as key benefits.
The study also revealed that 82% of respondents view AI as helpful to their business and 76% anticipate it will have a moderate to significant impact in the next five years. With 65% of businesses already utilizing AI, the technology is quickly becoming a staple in core functions like customer support (64%), finance and accounting (42%), and HR (50%).
“AI allows a business to punch way above its weight,” said Beaumont Vance, Paychex senior vice president of data, analytics, and AI. “It’s a particularly great equalizer for small- and medium-sized businesses in an increasingly competitive landscape. Understanding and embracing AI’s full potential can boost efficiency, enhance decision-making, and deliver tangible ROI.”
Additional key findings from the survey included:
- AI is only as good as its data: Nearly one in five (18%) of respondents using AI today said they have faced difficulties due to poor data quality. Moreover, 53% state that accurate data would enhance their trust in AI tools, emphasizing the strong relationship between data integrity and AI adoption.
- Data security & privacy remain a common concern: 54% of businesses cite data privacy and security as a primary challenge to AI adoption, with 45% of those respondents citing concerns about how technology companies use their data, and 17% stating they do not trust technology companies with their data.
- Anticipated acceleration of AI investment in people operations and functions: 72% of small businesses plan to invest at least $1,000 in AI in the next year, with 53% directing funds toward HR – the top investment area. AI investments are also planned in recruiting (44%), onboarding new employees (41%), and employee retention (32%), underscoring that AI adoption in human resources functions, from the recruiting stage through career development, is a priority.
For more insights and valuable resources on the key findings from survey, visit Paychex WORX.
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