86% of Small Businesses Now Use AI, Goldman Sachs Survey Reveals

Goldman Sachs Launches $500M Small Business AI Institute

Goldman Sachs announced a $500 million expansion of its Goldman Sachs 10,000 Small Businesses program, establishing the Small Business AI Institute to accelerate AI adoption among small businesses2

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. The initiative partners with OpenAI, Google, Meta and Anthropic to deliver AI tools and training directly to entrepreneurs across the country. Goldman Sachs CEO David Solomon emphasized the urgency of embracing new technology: "You've got to embrace new technology always, because if you're not embracing it, trying to figure out how it can make your businesses better, there's a real chance that you can fall behind"2

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Sam Altman, CEO of OpenAI, expressed optimism about the initiative's potential impact on entrepreneurship: "We believe AI will create the greatest boom in entrepreneurship and small businesses that the world has ever seen. This is an incredible moment for anyone with an idea for a new endeavor because the gap between imagining it and bringing it to life is getting much smaller"2

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Survey Data Shows Rapid AI Adoption Among Small Businesses

A comprehensive survey of 2,474 small business owners who graduated from or participated in the Goldman Sachs 10,000 Small Businesses program found that 86% now use AI in their workplaces, a dramatic increase from just 56% in 20242

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. However, only 15% have fully integrated AI into their core operations, suggesting most small business owners use AI are still in experimental or partial implementation phases2

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In California specifically, 93% of 95 surveyed small businesses use AI. Of those integrating AI into operations, 27% have achieved full integration, 49% actively use it in some areas, and 24% remain in experimentation mode1

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. The Washington, D.C. area shows similar enthusiasm, with 88% of 187 sampled businesses having fully integrated AI, nearly half actively using it for their work3

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Productivity and Marketing Content Lead AI Use Cases

Small business owners use AI primarily for productivity tasks and generating marketing content. Nationwide, 66% of surveyed businesses deploy AI for productivity functions including taking notes, writing emails and documenting processes, while 64% use it for generating written marketing content1

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. In California, both productivity and marketing content generation tied at 62%, with strategy and business development following at 61%1

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Regional variations reveal different priorities. In Texas, 71% of AI users leverage it for generating written marketing content, while 64% focus on productivity1

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. Florida shows the highest adoption rate at 93%, with 77% using AI primarily for enhancing productivity and 72% for generating written content3

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Rechelle Balanzat, founder of laundry services app Juliette and a 10,000 Small Businesses program alumna, described her approach: "I really treat my AI as my consigliere. They are not there to replace your accountant and lawyer. They are not there to replace humans. However, it does help prep me to have much more meaningful questions when I am meeting with my accountant and with my lawyer"2

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Most Small Businesses Spend $100 or Less Monthly on AI

Despite widespread AI adoption among small businesses, spending remains remarkably modest. Survey data shows 73% of small businesses nationwide spend $100 or less per month on AI1

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. In California, 68% spend $100 or less monthly, while 32% exceed that threshold. About 14% of California respondents don't pay for AI at all1

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The Washington, D.C. area mirrors this pattern, with 69% spending $100 or less per month and 12% using free AI tools entirely3

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. In New York City, 65% of businesses with fully integrated AI spend $100 or less3

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. This conservative spending suggests small businesses are leveraging accessible, low-cost AI solutions rather than enterprise-grade platforms.

Cybersecurity Risks and Regulatory Concerns Temper Enthusiasm

While AI adoption among small businesses accelerates, significant concerns persist around cybersecurity risks and regulatory oversight. Mike DiMarino, who heads Linda Tool in Brooklyn and participated in the inaugural 2010 class of Goldman's program, remains cautious about integrating AI into operations involving sensitive defense, aerospace and manufacturing information2

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A recent NBC News poll found 79% of respondents believe the government isn't doing enough to regulate AI use, while 67% disapprove of how President Donald Trump is handling the technology2

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. Trump has favored lax AI regulation from the government. Some small businesses already face public backlash, including restaurants using AI-generated images of food that critics denounced as "slop"2

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These regulatory concerns come as Wall Street positions itself at the center of the AI boom. Goldman's share price has approximately tripled over the past three years as AI-related companies pushed the stock market to record highs2

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. The bank helped lead SpaceX's record-breaking IPO and is reportedly working on Anthropic's public offering. David Solomon stated on an earnings call: "There is going to be a lot of financing to do, and we're going to be in the middle of that"2

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. Small businesses, which comprise more than 90% of all U.S. companies and drive most job growth, represent a critical market for sustaining AI's economic growth trajectory.