Official dataSmallUSA
22.6%
of US businesses with 5 to 9 employees used AI in the last two weeks, the lowest rate of any size band
Sample: About 1.2 million US employer businesses sampled; estimate for firms with 5 to 9 employees.
Official dataUpdated 23 Oct 2026
24.3%of US businesses with 1 to 4 employees used AI in any business function in the two weeks before the survey
24.3% of the smallest US businesses, those with 1 to 4 employees, used AI in the two weeks to 18 October 2026, according to the Census Bureau. That is up from 17.0% in the wave ending 30 November 2025, the first wave with the current question, and close to the 24.6% rate for all US firms.
+5.3 points since the previous figure: 19.0% (3 May 2026)
Official dataChecked at source, 23 Oct 2026SmallUSASmall business · AI adoption
US firms using AI, by number of employees
| Group | Used AI in last two weeks |
|---|---|
| 1 to 4 | 24.3% |
| 5 to 9 | 22.6% |
| 10 to 19 | 24.6% |
| 20 to 49 | 26% |
| 50 to 99 | 29% |
| 100 to 249 | 35.3% |
| 250 or more | 43.6% |
| All US firms | 24.6% |
Firms with 1 to 4 staff using AI, every two weeks
| Group | 1 to 4 employees |
|---|---|
| 30 Nov 2025 | 17% |
| 28 Dec 2025 | 17.7% |
| 25 Jan 2026 | 18.2% |
| 22 Feb 2026 | 17.5% |
| 22 Mar 2026 | 18.5% |
| 19 Apr 2026 | 19.2% |
| 17 May 2026 | 19.1% |
| 14 Jun 2026 | 20.1% |
| 12 Jul 2026 | 20.8% |
| 9 Aug 2026 | 21.9% |
| 6 Sep 2026 | 23.6% |
| 4 Oct 2026 | 23.9% |
| 18 Oct 2026 | 24.3% |
In plain words
What this number really says
About one in four of the smallest US businesses now uses AI. Census asks every two weeks, so this is a live number, not a one-off poll.
24.3%
of firms with 1 to 4 staff used AI in the last two weeks (wave to 18 Oct 2026)
17.0%
the same group in the wave ending 30 Nov 2025, the first with today's question
43.6%
of firms with 250 or more staff, the highest size band
Why you can trust it. Official US government survey, about 1.2 million employer businesses sampled. Public domain data read in the Census file itself.
Key terms
- Employer business A firm with at least one paid employee. BTOS does not survey one-person firms with no payroll.
- Wave One two-week survey period. Each wave covers a different panel of firms.
- Use AI Census asks if the business used AI "in any of its business functions" in the last two weeks, with examples like machine learning, virtual agents and voice recognition.
Source: US Census Bureau, Business Trends and Outlook Survey, Oct 2026
Before and now
How we got here
30 Nov 2025
17.0%First wave with the new "any business function" wording.
3 May 2026
19.0%Spring wave.
18 Oct 2026
24.3%Latest wave, published 22 Oct 2026.
From 19 Oct 2026
New wordingThe question now says "Super Intelligence or SI". Treat later waves as a new series.
Compare
How 24.3% compares
This number
24.3%
USA Oct 2026
Latest1 to 4 staff
24.3%
Smallest firms
-0.3 pts vs all firms5 to 9 staff
22.6%
Lowest of any size band
-2.0 pts vs all firmsAll US firms
24.6%
National rate
250 or more staff
43.6%
Largest firms
+19.0 pts vs all firmsWho it affects
Who feels this number
The same 24.3% means something different for each group.
Firms with 1 to 4 staff
24.3%RisingUp 7.3 points since the wave ending 30 Nov 2025.
Firms with 5 to 9 staff
22.6%Lowest bandUp from 15.5% in the wave ending 30 Nov 2025.
Where it shows
Where this number has an impact
What it means for a small firm
If you run a firm of under five people and you do not use AI yet, about three in four of your peers do not either. The gap with large firms is real (43.6%), but small firms are not the laggards: firms with 5 to 9 staff are lowest.
Why this differs from other numbers
Private surveys often report 40% to 60% for small businesses. They ask owners about any use by staff, often of free chatbots. Census asks whether the business used AI in its functions. See our reconciliation below.
The future
What this number says about what comes next
Forecasts below are made by others and linked to where they were published. Our own reading of the data is marked as ours.
Our reading, not a forecast
What the data suggests
- Steady climb. Our reading: the 1 to 4 staff rate rose in most waves since November 2025, from 17.0% to 24.3%. Census changed the question wording on 19 Oct 2026, so the next waves start a new series.
Where it already is: the benchmarks
1 to 4 staff
24.3%
All US firms
24.6%
250 or more
43.6%
What to watch next
- Census BTOS release every two weeks (next after 22 Oct 2026).
- Whether the "Super Intelligence" wording from 19 Oct 2026 moves the numbers.
The data
All the numbers in one table
As published by US Census Bureau, Business Trends and Outlook Survey, Oct 2026. Standard errors are shown where the source gives them.
| Firm size | Share using AI | Wave ending |
|---|---|---|
| 1 to 4 employees | 24.3% | 18 Oct 2026 |
| 5 to 9 | 22.6% | 18 Oct 2026 |
| 10 to 19 | 24.6% | 18 Oct 2026 |
| 20 to 49 | 26.0% | 18 Oct 2026 |
| 50 to 99 | 29.0% | 18 Oct 2026 |
| 100 to 249 | 35.3% | 18 Oct 2026 |
| 250 or more | 43.6% | 18 Oct 2026 |
Why small-business AI numbers range from 8% to 46%
The SBA FAQ (Feb 2026) quotes 8.2% for firms with fewer than five employees. That came from the older BTOS question, which asked about AI used to produce goods or services, over Sept 2024 to Aug 2025.
The Federal Reserve Small Business Credit Survey found 46% of small employer firms said the business or its employees use AI for work. It is a convenience sample of 6,525 firms and counts any staff use.
Census BTOS today asks about AI in any business function and samples about 1.2 million firms. That gives 24.3% for firms with 1 to 4 staff.
Method and use
How it was measured, and how to use it
How it was measured
- Publisher
- US Census Bureau, Business Trends and Outlook Survey
- Source type
- Official data: Government statistics office or regulator
- What it measures
- 24.3% of US businesses with 1 to 4 employees used AI in any business function in the two weeks before the survey
- Data period
- Oct 2026 (ends 18 Oct 2026)
- Published by the source
- 22 Oct 2026
- Who is counted
- About 1.2 million US employer businesses in six panels; each panel reports every 12 weeks. Estimate for firms with 1 to 4 employees.
- In the source's words
"xmltag": "Current AI Use (Last Two Weeks)", "EMPSIZE": "1-4 Employees", "Estimate": 24.3, "facet": "1-19 Employees", "Date": "2026-10-18"
- Checked at source
- 23 Oct 2026: Read in the Census BTOS file AI_empsize.json (the file behind census.gov/hfp/btos/data), downloaded 2026-10-23 and identical to the research copy; wave 5-18 Oct 2026. The AI_empsize.json file itself carries no standard error; the Employment Size Class.xlsx file on the same census.gov page publishes one for this band (0.32 points, wave 202621).
- Reuse
- Public domain (US government work). Free to reuse; cite "US Census Bureau, Business Trends and Outlook Survey". Census labels BTOS an experimental data product.
- Next expected update
- 5 Nov 2026 (US Census Bureau, every two weeks)
- Original page
- www.census.gov: Business Trends and Outlook Survey
- Data files
- CSV · JSON (stable links)
Full change log
- 22 Oct 2026New data24.3% Wave 5-18 Oct 2026.
- 19 Oct 2026Method changeFrom the wave starting 19 Oct 2026 the question asks about "Super Intelligence or SI (formerly referred to as Artificial Intelligence or AI)" after Executive Order 14434. Later waves are a new method and must not be charted as one trend with this one.
- 3 May 2026New data19.0% Wave ending 3 May 2026 (wave end date).
- 30 Nov 2025New data17.0% Wave ending 30 Nov 2025 (date is the wave end, not the release day), the first wave with the current wording ("in any of its business functions").
Cite this number
APA
US Census Bureau. (2026). 24.3% of US businesses with 1 to 4 employees used AI in any business function in the two weeks before the survey. Via digitaltreed, https://digitaltreed.com/statistics/small-business/small-business-ai-use-1-4-staff
MLA
"24.3% of US businesses with 1 to 4 employees used AI in any business function in the two weeks before the survey." US Census Bureau, Business Trends and Outlook Survey, Oct 2026. digitaltreed, https://digitaltreed.com/statistics/small-business/small-business-ai-use-1-4-staff.
HTML link
<a href="https://digitaltreed.com/statistics/small-business/small-business-ai-use-1-4-staff">24.3% of US businesses with 1 to 4 employees used AI in any business function in the two weeks before the survey</a> (US Census Bureau, Oct 2026)
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FAQ
Questions about this number
What percentage of small businesses use AI?
24.3% of US businesses with 1 to 4 employees used AI in the two weeks to 18 October 2026 (Census BTOS). A Federal Reserve survey that counts any staff use found 46% of small employer firms in late 2025.
Do small businesses use AI less than big companies?
Yes. 43.6% of firms with 250 or more employees used AI in the same Census wave, against 24.3% of firms with 1 to 4 employees.
Which small businesses use AI the least?
Firms with 5 to 9 employees, at 22.6% in the wave to 18 October 2026.
How often is this number updated?
Every two weeks. Census publishes a new BTOS wave about every 14 days.
Why does the SBA say only 8% of small businesses use AI?
The SBA figure (8.2% for firms under five employees) used the older Census question and covers Sept 2024 to Aug 2025. Census changed the question in November 2025.
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