AI Impact Report: Mapping adoption, use, and impact in the US, Canada, the UK, and Australia

AI adoption among small and midsize businesses isn't coming. It's here.

We surveyed more than 34,000 small and midsize business owners across the US, Canada, the UK, and Australia and combined their responses with anonymized data from more than 5.3 million QuickBooks businesses. This is the most comprehensive look at how small and midsize businesses are adopting AI, and what it's doing to their revenue, productivity, and growth. Get the full findings below. Just click to read.

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7 in 10 small and midsize businesses in the UK now use AI regularly

When we began tracking AI use through quarterly surveys in July 2024, fewer than half of businesses in most countries used it regularly. By January 2026, that number had climbed sharply, and daily use had grown even faster. This includes any kind of AI use, from free tools and built-in features to dedicated paid subscriptions. The businesses leading that shift are reporting real results.

• 70% of businesses in the UK now use AI regularly, up from 42% in July 2024.

• 77% of businesses in the UK say AI has improved their productivity, up from 39% in July 2024.

• 43% of businesses in the UK say AI has increased their revenue. Only 4% say it’s gone the other way.

• 2.5x as many businesses in the UK say AI has increased hiring than reduced it.

Is AI worth the investment? The data has an answer.

Productivity is the clearest win. Beyond that, UK businesses using AI are more likely to report it driving more gains than setbacks in revenue, workforce growth, and shorter workdays. The next unlock for wider adoption, and bigger gains, is trust. 

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Not just AI adoption. AI investment.

Across the UK, Canada, and the US, a distinct group of businesses has gone beyond occasional AI use. Roughly 1 in 10 in every market are paying for dedicated AI tools, embedding them deeply into their operations, and not looking back.

• 7% of UK businesses with observed payment records paid for dedicated AI tools between 2021 and 2025. A small share, but most are staying invested.

• 79% of businesses we tracked in the UK that paid for AI in 2024 were still paying in 2025. Businesses investing in AI aren’t walking away.

20% of businesses in the information sector in the UK paid for AI between 2021 and 2025, the highest rate of any industry in our sample.

Two years of tracking. One clear picture of where AI stands for small and midsize businesses—and where it's headed. No form. No email. Just the report.

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Inside the AI Impact Report

Six findings that map where AI stands, and where it’s headed. Get the full picture in the 2026 AI Impact Report.

1. AI use is now widespread 

Roughly 7 in 10 businesses across the UK, Canada, the US, and Australia now use AI regularly, and daily use has more than doubled in some markets.

2. The results are real 

Businesses using AI are more likely to report improvements than setbacks, including productivity gains, revenue lift, shorter workdays, and more hiring than cuts.

3. Paid commitment tends to stick  

In our sample, roughly 8 in 10 businesses that paid for AI in 2024 were still paying in 2025. Businesses that go deep on AI don’t tend to walk away.

4. Paid use has a clear profile 

Newer businesses. Digital-first industries. The businesses paying to use AI share a recognizable profile, and some might surprise you.

5. The biggest barrier isn't cost 

Across countries, the top barriers cluster around privacy and security, fear of errors, and uncertainty about what AI can do.

6. Businesses know where AI belongs 

Adoption is highest in marketing, admin, and customer service. It’s lowest where human judgement matters most.

The data is comprehensive. The takeaway is simple.

You’re not falling behind your peers. 

Most business owners start cautiously. If you’re using AI sometimes but haven’t committed fully, you’re not an outlier. You’re on your way.

AI shows up first where the busywork is.

Businesses tend to reach for AI for the tasks that eat the most time: admin, customer communication, and scheduling. That’s where the early wins are.

Human judgement still matters.

Across all four countries, businesses are drawing lines about where AI belongs. That’s not resistance, that’s good instinct. 

More owners say AI helps than hinders.

The “just another tool to manage” concern is real, but so is the data. Businesses using AI report productivity gains. 

When you’re ready to invest, you won’t look back.

Commitment is high among businesses paying to use AI. That’s a strong signal that something is working.

The most comprehensive look at AI adoption among small and midsize businesses.

The 2026 AI Impact Report is built on survey responses from more than 34,000 business owners and anonymized data from more than 5.3 million QuickBooks businesses across the US, Canada, the UK, and Australia, and developed in collaboration with economists at the University of Chicago. Free to download, no email required.

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