Press Release: New Bredin research reveals why SMBs aren’t paying for AI tools and what would prompt a change

CAMBRIDGE, MA [July 1, 2026] — According to new survey data from Bredin, 42% of U.S. small and midsized businesses (SMBs) that currently use AI are using free tools only. 

The top reason for not using paid AI tools: the free version of software tools achieves everything they need right now. However, larger SMBs - those with 100 to 1,000 employees - are equally likely to say that they plan to upgrade to a paid subscription, but haven’t gotten to it yet. 

What would nudge SMBs to pay for AI tools? Lower costs, clear examples of the time or money they would save by paying, and more desire on the part of their employees to upgrade.

For full findings, join our 1 p.m. ET Thursday July 9 Fastcast, The New Frontier: SMB Use of AI.

"The smallest businesses want proof it'll pay off. Larger SMBs want to see someone else already winning with it," said Stu Richards, Bredin CEO. "If you're selling AI tools to SMBs, case studies and success stories are the name of the game."

The research also surfaced the surprising fact that nearly one in five SMBs are paying for software with built-in features they didn't know they had. 18% of SMBs of all sizes answered “no” when asked if they were aware of AI features built into software they already pay for, such as Microsoft 365, Google Workspace, QuickBooks, their CRM, or their email platform. 

"For software vendors, that's a missed opportunity sitting in plain sight,” Richards said. “These customers don't need a sales pitch, they need to be educated on what's already in the application." 

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About Bredin
Bredin is a global market research firm helping the world’s leading brands understand, engage, and acquire SMB customers through custom and syndicated research. Bredin’s SMB MarketPulse subscription research provides ongoing, actionable SMB marketing, sales, and customer support insights.

Media Contact: info@bredin.com