Between the hype and the headlines, the challenge is figuring out which tools save time, which ones fit your operation, and which ones just add more work in the name of “automation.”
We surveyed more than 1,000 small business owners across the U.S. for our Cash Flow Compass report to see how they’re using AI, where it’s helping, and what still gives them pause.
The findings were eye-opening—64% of small business owners say they’d trust AI to manage their cash flow. Nearly one in three are already using AI tools to keep their cash flow in check.
The takeaway? AI isn’t just for Silicon Valley startups. Small businesses are embracing it—but not everyone is getting the full value yet.
Here’s what the data shows about who’s adopting AI, how they’re putting it to work, and the risks every business owner should consider before clicking “agree” on those epic-length terms of service.
The state of AI adoption in small businesses
AI tools are popping up everywhere these days, from our smartphones to AI-powered pots that keep office plants alive. But just because AI is out there doesn’t mean every business owner is putting it to work.
In our Cash Flow Compass survey, more than 60% of small business owners said they’re open to AI. Here’s how that breaks down:
27% are already using AI in their operations.
37% are open to it but haven’t taken the leap.
22% are undecided and waiting to see how things play out.
14% said “absolutely not”—at least for now.
By industry, some sectors are racing ahead. Finance and tech lead with 78% adoption or openness, followed by manufacturing at 74%. Nonprofits are also ahead of the curve, with more than a third already using AI. Trades and hospitality, on the other hand, are more cautious—just over half say they’d trust AI to manage their cash flow.
Why the differences? Finance and tech companies are generally more comfortable with digital tools, while nonprofits are often looking for ways to stretch resources further. For trades and hospitality, the hesitation often comes from relying on manual processes and the need to deliver highly personal customer service.
Generational gaps tell a similar story. Millennials and Gen Z are the most enthusiastic, with about 70% already using AI or ready to give it a try. Gen X is more cautious, though two-thirds said they’re open to it. And while Boomers have the highest share of skeptics, they’re not out of the picture—more than half said they’d still consider AI under the right circumstances.
What business owners really want from AI
ChatGPT, Veo3, and Adobe Firefly are often the first tools people think of when they hear “AI.” There’s even one called Nano Banana (try saying that with a straight face).
These tools are great for polishing an email or creating a scroll-stopping Instagram image—but they’re not tackling the problems business owners actually need solved.
Saving money matters, sure. But what’s really driving AI adoption are the bigger pressures: rising material costs, labor shortages, and tariff challenges that are already stretching small business owners thin.
For those open to AI—or already using it—the appeal is clear: a reliable “second set of eyes” that can spot potential issues before they turn into real problems.
Tracking income and expenses automatically
AI, meet AR and AP. Nearly half (48%) of small business owners said they’d trust AI to track their income and expenses. And it’s no wonder—depending on the size of the business, AR and AP can eat up hours every month that could be spent actually running or scaling the business. A report from Deluxe found that AR alone can take 10 to 14 hours each month. The real benefit isn’t just time saved—it’s fewer errors and far less headache from manual tracking.
Automating billing and payments
If there’s one part of running a business that’s equal parts essential and frustrating, it’s billing and payments. In our Cash Flow Compass report, 46% of owners said they’d trust AI to take this on—and for good reason. Chasing late invoices, processing payments, and reconciling accounts can devour hours every month. AI can step in to send reminders, flag overdue accounts, and keep things moving. Think of it as an always-on billing team that never forgets a due date (and doesn’t need coffee breaks).
Predicting future cash flow
Cash flow surprises are still a huge pain point: 88% of business owners faced unexpected issues in the past year, and three-quarters said those surprises hurt their business. No wonder 39% said they’d trust AI to predict future cash flow. AI can’t stop your biggest client from paying late—but it can give you the foresight to plan for it, turning sleepless nights into systems you can actually rely on.
What’s making business owners hit pause on AI?
AI adoption is on the rise, but not every small business owner is jumping on the bandwagon. In our Cash Flow Compass report, 22% said they’re undecided about using AI—and 14% went further, saying they don’t trust it at all.
Here’s what’s holding some owners back:
Garbage in, garbage out: AI is only as smart as the data you feed it. If the inputs are messy, the advice can be too.
Fear of over-reliance: Many owners take pride in running their businesses hands-on. AI can feel like a black box calling the shots.
Security concerns: Financial data is sensitive, and some owners are unsure where it’s going, or who else might see it.
Hidden costs: AI tools promise savings, but subscriptions fees and integrations can quickly add up.
Complexity overload: For owners already juggling payroll, invoices, and growth plans, adding “AI management” to the list feels like one task too many.
Human touch matters: Numbers are one thing, but decisions like who to hire and when to invest still feel too big to leave entirely to a machine.
Trust in AI isn’t given. It’s earned through education, safe systems, and the proper guardrails. When those are in place, AI stops feeling like a risk and starts looking like a reliable partner for growth.
AI is more than automation
One of the biggest opportunities for AI is as an equalizer. Small businesses can use AI to match the scale and efficiency of larger competitors, without the massive headcount or enterprise-sized budgets.
That means automating tasks that once required whole teams, streamlining decisions with real-time data, and competing on more than just grit (although grit is still what gets the work done).
AI doesn’t have to mean handing your books over to the robots. Done right, it’s a powerful way to keep cash flow steady with fewer headaches along the way. The key is choosing tools that fit your business, goals, and comfort level. AI isn’t about replacing you, it’s about helping you run your business smarter.
