Majority of SMBs say AI is essential to reaching new customers

A new national survey reveals a dramatic shift in how small businesses are embracing artificial intelligence (AI), with current usage jumping from 39% in 2024 to 55% in 2025—a 41% increase. The second annual AI and Small Business survey, conducted by Thryv® (NASDAQ: THRY), underscores how AI is rapidly becoming a cornerstone of small business strategy, helping owners save time, reduce costs, and compete more effectively in an unpredictable economy.

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Many SMBs are gravitating to AI for marketing support, with content marketing emerging as the most popular use case.

The survey, conducted in May 2025 and based on 540 interviews with small business decision-makers, shows that AI adoption is especially strong among companies with 10 to 100 employees, where usage jumped year-over-year from 47% to 68%. Younger business owners and those in professional services and retail sectors are leading the charge, integrating AI into marketing, customer service, and operations.

The majority of small business users (80%) believe AI is essential to reaching new customers, and 78% say it’s necessary to meet rising consumer expectations for speed and personalization. These perceived benefits far outweigh concerns about data security, which decreased 40% year over year.

“Small businesses have moved beyond wondering if they should use AI—they’re determining how fast they can implement it,” said Grant Freeman, president of Thryv. “This embrace of AI underscores the value small businesses place on technology. AI is helping them do more with less, reach new customers, and operate with the agility of much larger businesses.”

How small businesses are benefiting from AI

Among current AI small business users:

• 63% use AI daily. Top applications include data analysis (62%), content generation (55%), and customer engagement tools like chatbots (46%).
• 58% report saving over 20 hours per month, reinvesting that time into growth initiatives like process improvement, customer acquisition, and innovation.
• 66% say AI saves their business between $500 and $2,000 monthly, with savings often redirected towards marketing, technology upgrades, and infrastructure.

AI’s impact on staffing levels

Two-thirds (67%) agree that AI takes pressure off themselves and their staff. Almost half (46%) say it will make them less reliant on employees. While only 14% of respondents believe AI could replace an employee, nearly half (42%) are open to the idea under the right conditions. As AI adoption levels continue to rise among small businesses, this openness could impact AI’s influence on staffing levels.

The survey also found that 41% of small businesses believe AI will help them navigate economic uncertainty, with another 40% saying it might. Optimism is highest among white-collar and service-based businesses, where over 70% see AI as a strategic advantage.

Review the survey report here. To learn more about how Thryv is incorporating AI into its leading small business platform, visit Thryv.

Survey Methodology

Data was collected from 540 small business respondents between May 4 and May 14, 2025. Respondents are decision-makers for their business and are aged 21 or older. Respondents have been in business for one year or more, have 1 to 100 employees, and report revenue ranging from $100k to $9.9 million.

About Thryv

Thryv Holdings, Inc. (NASDAQ: THRY) is the provider of the leading sales and marketing platform designed to help small businesses attract new and repeat customers. Thryv software offers SMBs everything they need to manage day-to-day operations and grow efficiently. The platform’s AI-supported marketing and business automations help business owners save time, compete, and win. More than 100K businesses globally use Thryv software to connect with customers and run and grow their business. For more information, visit www.thryv.com.

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“Small businesses have moved beyond wondering if they should use AI—they’re determining how fast they can implement it,” said Grant Freeman, president of Thryv.