Paychex Survey Finds AI is Empowering Small Businesses, with 72% Feeling Positive
Study reveals AI adoption is strong, but success hinges on data quality and trust
According to a new study from Paychex, Inc., an industry-leading human capital management (HCM) company delivering a full suite of technology and advisory solutions in human resources, employee benefit solutions, insurance, and payroll, small businesses across the U.S. are embracing artificial intelligence (AI) as a powerful tool to enhance efficiency, revenue, and workforce development. While concerns about data accuracy, security, and privacy persist, survey responses from 500+ business owners and 500+ HR leaders found that the business impact of AI is undeniable – 72% of small businesses have a positive outlook on the technology.
Of the survey respondents using AI today, 66% report increased productivity, and many cite cost savings (44%), revenue growth (40%), improved recruiting (35%), higher employee satisfaction (34%), and improved customer acquisition (34%) as key benefits.
The study also revealed that 82% of respondents view AI as helpful to their business and 76% anticipate it will have a moderate to significant impact in the next five years. With 65% of businesses already utilizing AI, the technology is quickly becoming a staple in core functions like customer support (64%), finance and accounting (42%), and HR (50%).
"AI allows a business to punch way above its weight," said Beaumont Vance, Paychex senior vice president of data, analytics, and AI. "It's a particularly great equalizer for small- and medium-sized businesses in an increasingly competitive landscape. Understanding and embracing AI's full potential can boost efficiency, enhance decision-making, and deliver tangible ROI."
Additional key findings from the survey included:
- AI is only as good as its data: Nearly one in five (18%) of respondents using AI today said they have faced difficulties due to poor data quality. Moreover, 53% state that accurate data would enhance their trust in AI tools, emphasizing the strong relationship between data integrity and AI adoption.
- Data security & privacy remain a common concern: 54% of businesses cite data privacy and security as a primary challenge to AI adoption, with 45% of those respondents citing concerns about how technology companies use their data, and 17% stating they do not trust technology companies with their data.
- Anticipated acceleration of AI investment in people operations and functions: 72% of small businesses plan to invest at least $1,000 in AI in the next year, with 53% directing funds toward HR – the top investment area. AI investments are also planned in recruiting (44%), onboarding new employees (41%), and employee retention (32%), underscoring that AI adoption in human resources functions, from the recruiting stage through career development, is a priority.
For more insights and valuable resources on the key findings from survey, visit Paychex WORX.
About the Survey
The results in this report are derived from an online survey of 1,129 respondents comprised of 500+ business owners and 500+ HR leaders. The survey was fielded from February 7 to 17, 2025, and results were not weighted.
About Paychex
Paychex, Inc. (NASDAQ:PAYX) is an industry-leading HCM company delivering a full suite of technology and advisory services in human resources, employee benefit solutions, insurance, and payroll. The company serves over 745,000 customers in the U.S. and Europe and pays one out of every 12 American private sector employees. The more than 16,000 people at Paychex are committed to helping businesses succeed and building thriving communities where they work and live. To learn more, visit www.paychex.com.
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