Artificial intelligence has gone from fringe to front-and-center in just a few short years. Across industries, it’s hailed as the next leap forward in operational efficiency, customer service, and decision-making. But according to a new report from American Express, many small businesses are still on the fence—unsure whether AI is a solution, a risk, or just another tech trend too complicated to adopt.
The AmEx Trendex: Small Business Edition surveyed 1,000 U.S. small business owners and revealed a split reality: while 86% of those using AI report benefits like fewer errors and stronger decision-making, 44% aren’t using it at all. And even among adopters, more than half say they may have jumped in too quickly.
That tension—between the promise of AI and the reality of integrating it—is shaping how small businesses are navigating growth in 2025. They want to be agile. They want to modernize. But they also want to protect the core of what makes them unique.
And maybe that’s not a contradiction. Maybe it’s the beginning of a more mature, realistic conversation about what AI is actually good for—and what it isn’t.
We’ve been told that AI will revolutionize everything from inventory management to customer outreach. And to some extent, it has. The businesses in the AmEx survey that have implemented AI tools report increased productivity and improved customer experience.
But underneath the positive stats is a more sobering truth: implementation is still a mess.
The majority of businesses using AI say they’re still learning how to use it effectively. Some regret rushing in. And many who haven’t adopted it yet cite real concerns: data security, cost, and the expense of training staff. These aren’t imaginary barriers—they’re structural issues that small businesses, often running on tight margins and tighter schedules, can’t afford to get wrong.
It’s a story that reflects a broader reality in the tech space: AI is powerful, but it’s not plug-and-play. It takes time, strategy, and yes—human effort—to make it work in a way that actually delivers.
There’s also something deeper going on. It’s not just that small businesses are unsure how to use AI—it’s that they’re unsure how much of their business should be run by AI at all.
This is where George Kailas, CEO of the investing insights platform Prospero.AI, draws a firm line. While he believes AI has transformative power, he warns that small businesses need to stop trying to turn themselves into mini tech companies.
“There’s this fantasy being pushed that small businesses need to automate everything to stay competitive,” Kailas says. “But if you’re a coffee shop or a local contractor, automating your customer interaction doesn’t make you more efficient—it makes you forgettable.”
The idea that AI should replace every human touchpoint, Kailas argues, misses the point of what makes small businesses resilient: trust, personal service, and relationships. Where AI can truly shine, he says, is in the background—streamlining admin, automating inventory, and freeing up owners to focus on what makes their business distinct.
“The real edge of a small business is trust and reputation—things AI can’t replicate,” Kailas adds. “Use the tech to gain time, not to replace your brand.”
The AmEx report points out that many small businesses expect their customer base to shift significantly this year—and they’re right. Consumer expectations are changing. People want speed and convenience, but they also want real interaction, especially from the local businesses they support.
That creates a narrow path forward: use AI where it helps you meet those expectations, not where it dilutes your identity.
If the past few years were about chasing innovation, the next few might be about integration. Business owners don’t need to become coders or automate everything that moves. They just need to know where AI adds value—and where it doesn’t.
That’s not tech resistance. That’s tech maturity.
And for a sector that’s long relied on resourcefulness over resources, that mindset might be the smartest adoption strategy of all.