Why SMBs Don’t Use AI Features

More than two-thirds of U.S. SMBs are aware of AI features built into common applications they already pay for, like Microsoft 365, Google Workspace, QuickBooks, or their CRM. However, a significant number haven't tried those features yet. Our new survey of 500 U.S. SMBs reveals why.

Awareness and use of built-in AI features

• Very small businesses (VSBs, 1–19 employees): 38% are aware of and actively use built-in AI features, 36% are aware but haven't tried those features, and 18% don't know they exist.
• Small businesses (SBs, 20–99 employees): 65% are aware of and actively use built-in AI features, 25% are aware but haven't tried those features, and 7% don't know they exist.
• Midsized businesses (MBs, 100–1,000 employees): 69% are aware of and actively use built-in AI features, 20% are aware but haven't tried those features, and 11% don't know they exist.

Top reasons SMBs don’t use AI features integrated into common applications

• VSBs: Concerns about customer data privacy
• SBs: Concerns about their business data being stored or used to train AI models
• MBs: Prefer dedicated AI tools over add-ons built into other software.

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