Editor's Synopsis
The JPMorgan Chase Institute published the first report in its Small Business in the Age of AI series, analyzing de-identified Chase Business Banking transaction data from 4.6 million small businesses between 2019 and 2025. The study tracks actual payments to AI services rather than relying on self-reported survey data, revealing that AI adoption among small businesses reached 17.7 percent by the end of 2025 — with dramatically accelerating uptake. The 2025 cohort of new businesses reached a 10 percent adoption rate in just six months, compared to over six years for the 2019 cohort, representing an unprecedented speed of technology diffusion compared to historical general-purpose technologies like electricity, PCs, and the internet.
Beyond adoption rates, the report finds that small businesses are moving from sporadic experimentation toward consistent, diversified AI usage. The ratio of consistent to sporadic AI users climbed to nearly 1.8 by 2025, and firms increasingly pay for multiple AI services across categories like generative AI, marketing automation, and customer relationship management. Newer adopters entered at roughly 50 percent lower spending levels than earlier cohorts, reflecting the availability of low-cost subscription-based tools that lowered barriers to entry, while established adopters maintained or increased their spending over time.
Significant adoption gaps persist, however. Employer firms consistently outpace nonemployer firms regardless of revenue, and knowledge-intensive industries like information and professional services show adoption rates three to four times higher than labor-intensive sectors like construction and food services. The authors suggest that broader adoption will require addressing skills gaps through training programs, building trust via transparency frameworks, and ensuring a robust ecosystem of AI service providers tailored to diverse business needs.