Original Research · 2026

State of AI in
Small Business.

230+ business owners shared their AI challenges, budgets, and goals. We analyzed the data to find what actually drives AI adoption — and what's holding businesses back.

Based on original survey data from Luke Pierce's 2026 AI adoption study. Analysis and recommendations by Oaken AI.

230+
Business owners surveyed
52%
Said "I don't know where to start"
4%
Named budget as a blocker
61%
Have already tried AI

Demographics

Who responded.

Industry Breakdown

Professional Services31%
SaaS & Tech18%
Real Estate14%
E-commerce11%
Manufacturing6%
Healthcare5%
Hospitality & Other15%

Company Size

62%
2-10 employees
24%
11-50 employees
14%
51+ employees

Annual Revenue

37%
$500K+ revenue
21%
$5M+ revenue

The #1 Finding

The biggest blocker isn't budget.

When asked “What is your single biggest challenge with AI adoption?”, more than half of respondents said the same thing: they simply don't know where to start.

52%

“I don't know where to start or what to prioritize.”

Don't know where to start52%
Not enough time22%
Just need someone to execute13%
Team / org buy-in9%
Budget constraints4%

Goals

What businesses actually want from AI.

The industry narrative is “AI will grow your revenue.” But business owners are asking for something different: they want their time back.

44%

Want to automate processes and save time

18%

Specifically mentioned revenue growth

Automate processes / save time44%
General efficiency gains31%
Revenue growth18%
Specific process (CRM, lead gen, etc.)13%

Readiness

The education phase is over.

61% of respondents have already tried AI in some capacity. The market has moved past awareness. The gap now is between experimentation and implementation.

25%
36%
21%
18%
25%

Tried AI, got limited results

Hottest segment
36%

Tried AI, seeing some value

21%

Haven't started yet

18%

Using AI successfully

Budget

What they're willing to spend.

72% indicated a budget of $1K-$5K for their first AI project. But the real story is at the high end: 54 companies said $5K+ and 25 said $15K+ — all from organic content alone.

175
companies
$1K - $5K
29
companies
$5K - $15K
17
companies
$15K - $50K
8
companies
$50K+
$1K - $5K Buyers
57%

Don't know where to start. They need a guide, not a tool.

$15K+ Buyers
22%

Don't know where to start. Their real problems: team buy-in (22%), justifying ROI (16%), internal alignment.

Industry Insights

Not all verticals are equal.

Strongest Vertical

Professional Services

31% of respondents. Legal, finance, and consulting firms sell time — and AI directly saves time. The ROI argument writes itself.

31%
of all respondents
Underpenetrated

Manufacturing

Only 6% of respondents, but includes the highest-revenue companies ($100M+). Massive opportunity with almost no competition.

6%
but highest revenue
Most Confused

Real Estate

60% don't know where to start and 20% said “all of the above” when asked about challenges. They need the most hand-holding.

60%
don't know where to start

Key Takeaways

8 things every business should know.

01

52% just need a roadmap

They're direction shopping, not price shopping. The biggest opportunity isn't selling AI tools — it's selling clarity.

02

Only 4% mentioned budget

Money is not the blocker. Confidence is. Businesses will pay for AI — they just need to know it will work.

03

24 companies want a trustworthy partner

They explicitly named "finding a trustworthy implementation partner" as their challenge. Trust is the currency.

04

The education phase is over

61% have already tried AI. They don't need to be convinced it matters — they need someone to make it work.

05

$15K+ buyers have different problems

At higher budgets, the blockers shift from "where do I start" (22%) to team buy-in (22%) and ROI justification (16%).

06

Lead with time saved, not revenue

44% want efficiency. Only 18% mentioned revenue. The pitch that converts is "save 10 hours a week" not "make more money."

07

54 companies at $5K+ from organic alone

No paid ads. No cold outreach. Organic content attracted 54 companies willing to spend $5K+ on AI implementation.

08

Professional services is the easiest vertical

31% of respondents. They sell time. AI saves time. The math is obvious and the ROI is immediate.

What's Next

Find out where you stand.

52% of business owners don't know where to start with AI. Our free AI Readiness Score gives you a personalized roadmap in under 5 minutes.

Methodology

Survey data collected by Luke Pierce (@lukepierceops) via organic lead magnets on X and LinkedIn. Oaken AI performed independent analysis of the findings to identify actionable patterns for small business AI adoption. Industries represented include professional services, SaaS, real estate, e-commerce, hospitality, manufacturing, and healthcare. Company sizes ranged from 2 to 500+ employees with annual revenues from under $100K to over $100M.