The August 2025 Main Street Business Survey, powered by the Freedom Economy Index, indicates that artificial intelligence adoption among small businesses remains limited despite growing technological capabilities. According to the findings, only 50% of small business owners have begun exploring AI implementation, while 45% report no AI use in their operations whatsoever.
Rising costs continue to dominate small business concerns, with 25% of respondents identifying this as their top issue. Declining consumer demand ranked second at 22%, while access to affordable capital placed third at 12%. Michael Seifert, CEO of PublicSquare, noted that small business owners have endured inflation, supply chain disruptions, and mandates, preferring government to step aside and allow free market forces to operate rather than seeking bailouts.
Among businesses that have adopted AI, the technology shows varied applications and impacts. Marketing and advertising emerged as the most beneficial area, with 32% of adopters finding AI most useful in this domain. Business operations followed at 9.2%, customer engagement at 7.9%, financial management at 3.6%, and workforce management at 2%. Notably, 26.6% of AI users report reduced staffing needs, suggesting potential labor market impacts as adoption increases. View the full results here.
The survey introduced the new State of Main Street Index, which debuted at 57 on a 100-point scale. Scores above 50 indicate positive momentum and optimism among business owners. Andrew Crapuchettes, CEO of RedBalloon.work, observed that business owners are making cautious growth investments despite persistent high costs and policy uncertainty slowing decision-making. They seek stable rules to facilitate long-term planning regarding AI, expansion, or hiring.
Regarding political matters, the Department of Government Efficiency received high approval ratings, with 38.3% rating its performance as excellent and 37.6% as good. While 91% of business owners agree with Elon Musk's call for balancing the federal budget, only 34% support his opposition to raising the debt ceiling. By a three-to-one margin, respondents believe Musk's proposed third party would be bad for America's economic future.
Krystal Parker, President of the U.S. Christian Chamber of Commerce, emphasized that businesses remain resilient and the free market stands ready to reward risk-takers. However, she warned that continued high prices forcing consumers to tighten spending could slow economic progress for all participants. The survey, now in its fourth year, shows businesses moving from defensive postures to cautious growth strategies despite persistent economic challenges.
