Small Businesses Are Betting Big on AI. Most Can't Prove It's Paying Off.

AI Spending Has Quadrupled, and Small Business Owners Are Paying However They Can

• The share of small businesses paying for AI jumped from 41% a year ago to 71% today, and the average monthly bill rose 343%.

• That spending is often outpacing any system for tracking it, with 59% of small businesses having no set AI budget

• 31% pay for business AI tools through personal accounts or credit cards, most often in marketing and advertising (39%), retail (34%), and hospitality and food (25%). Of those, 10% are carrying AI subscriptions on a card that they don't pay off in full.

• The loose oversight shows up on the balance sheet: 29% have paid for at least one tool they haven't opened in the past 30 days, and 15% have had an AI charge go unpaid past its due date because of cash flow, most often in marketing and advertising (22%).

• 33% of small business owners would cut AI first if they had to trim costs, most likely in marketing and advertising (67%), followed by hospitality and food (55%) and healthcare (41%). But nearly 1 in 10 (9%) would cut employee pay first.

Most Can't Prove AI Spending Pays Off

• Only 26% of small business owners can point to a specific, measurable result from their AI tools.

• The largest group, 36%, believes AI helps but can't prove it, while 19% have seen no noticeable return, and 4% say it has cost them more than it has saved. Another 15% aren't sure either way.

• Put together, more than 7 in 10 are paying for AI without a measurable result to show for it. Small business owners feel pressure to adopt AI to keep up, but they can't always justify the cost.

The Tradeoffs Owners Make to Keep Paying for AI

• 39% of small business owners have cut or delayed a cost to cover their software and AI bills, including their own pay (17%), marketing (14%), and employee raises or bonuses (7%). The most affected industries are marketing and advertising (67%), information technology (61%), and healthcare (44%), which have cut or delayed costs to cover their software and AI bills.

• The tradeoffs reach employment, too. Nearly 1 in 5 owners (19%) say AI use has led them to skip a hire, most often in information technology (39%), hospitality and food (30%), and retail (19%). And 7% say an AI tool has led them to replace someone already in a role.

• Part of the reason owners hold on is how essential the tools have become: 62% say they'd face disruption if their paid AI tools disappeared tomorrow, a share that was highest in marketing and advertising (72%), followed by information technology (68%) and retail (65%).

Methodology

We surveyed 363 employed U.S. small business owners about how much artificial intelligence tools cost their businesses and whether that spending pays off. Respondents were distributed across genders, generations, and industry sectors. The gender breakdown was women (64%), men (34%), and non-binary or preferring not to answer (2%). The generational breakdown was as follows: millennials (49%), Gen X (32%), Gen Z (12%), and baby boomers (7%). The survey was conducted in July 2026. All percentages are rounded to the nearest whole number.

About Clarify Capital

Clarify Capital helps small and midsize business owners access the financing they need to manage cash flow, handle unexpected expenses, and grow with confidence. From no-doc business loans to fast business loans, Clarify Capital connects you with flexible financing options tailored to your business.

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