AI at Work
Small businesses are the backbone of the American economy, and AI-powered tools are helping them grow, compete, and serve their customers and communities
Why It Matters
of small businesses have adopted AI tools to help run their business
of small businesses have adopted AI tools to help run their business
of small businesses using AI report revenue gains — including 1 in 3 reporting revenue increases of 25% or more
of small businesses using AI report revenue gains — including 1 in 3 reporting revenue increases of 25% or more
of small businesses using AI report time savings of 40 or more hours per month
of small businesses using AI report time savings of 40 or more hours per month
of small business owners say that AI helps them compete with larger companies
of small business owners say that AI helps them compete with larger companies
Sarah Wells
founder, Sarah Wells Bags
A Growing Patchwork of State AI Regulations
Fragmented Regulations Hurt Small Businesses
In 2025 alone, U.S. states and municipalities introduced over 1,000 artificial intelligence bills. All 50 states considered some form of AI legislation, and 38 states adopted nearly 100 different AI laws
Stifled Innovation
Conflicting state regulations force small businesses to navigate a complex web of rules, diverting resources from innovation to compliance
The State AI Law Patchwork
State-by-state AI regulations create confusion and compliance headaches for small businesses operating across state lines
1,000+
AI bills introduced across U.S. states in 2025
~100
different AI laws adopted by 38 states
50
states considered AI legislation
Five Policy Guidelines
Overcoming the Challenge
Consistency
Establish a unified national AI framework that preempts the current patchwork of state regulations
Proportionality
Ensure AI regulations are proportionate to actual risks, avoiding one-size-fits-all rules that burden small businesses
Flexibility
Create adaptable regulations that can evolve with rapidly changing AI technology
Accessibility
Make compliance resources and guidance readily available and understandable for small businesses
Innovation
Protect the ability of small businesses to adopt and benefit from AI-powered tools
Angel Rodriguez
CEO, Rodriguez Solutions
Why Policymakers Should Care
AI has the potential to supercharge America's small businesses. When small businesses succeed, so do neighborhoods, communities, and local economies. In the absence of comprehensive federal legislation, small businesses will struggle to move forward with AI adoption — making it much harder for them to grow and compete in today's digital economy
Tari Cash
founder and CEO, CitySwing
Real Small Businesses Using AI
From coast to coast, small businesses are using AI-powered tools to compete, grow, and serve their communities. Here are their stories
Business name
Sarah Wells Bags
Founder name
Sarah Wells
Location
Fairfax, VA
Industry
Retail
Sarah Wells Bags creates designer breast pump bags, coolers, organizers, and pumping apparel for working mothers. The company uses AI to edit product and lifestyle photography, automate financial workflows, improve product listings, support keywords, and assist customer service.
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