Nearly three-quarters of small business owners view artificial intelligence as a way to support employees and improve efficiency rather than reduce headcount, according to a new survey that found firms increasingly adopting AI while grappling with inflation and hiring challenges.
Staffing remains one of the biggest pressures facing small businesses, even among firms offering competitive pay and benefits, according to an April 2026 survey of 500 U.S. small-business owners conducted by Wakefield Research for ShareBuilder 401k. The ongoing labor crunch is pushing up costs and making recruitment and retention a top concern for roughly one-third of respondents.
Many owners are turning to artificial intelligence to bridge talent gaps and expand capacity, the survey found. Just 9% of respondents view AI as a replacement for workers, while 70% believe integrating the technology will ultimately help them hire additional employees.
AI is already producing measurable returns for many firms. Three-quarters of respondents said the technology saves them time each week, while 63% said they rely on AI-generated insights to help guide business decisions. Still, adoption comes with challenges of its own, with 21% citing AI integration as a top concern for the year ahead.
AI adoption is just one strategy businesses are using to navigate persistent cost pressures.
Amid ongoing inflation and labor challenges, 88% of owners said they took action over the past year, up from 78% in 2024. Half increased prices to protect margins, while others turned to lower-cost vendors (23%) or raised employee wages (22%). Inflation remained the dominant pressure point overall, with 62% citing it as a top concern for the coming year.
Yet even as businesses wrestle with inflation, staffing shortages and AI adoption, personal financial security weighs even more heavily on many owners.
Nearly two-thirds (63%) said planning for retirement is more daunting than managing AI in their business. While 81% are currently saving for retirement, the highest level since 2017, more than 4 in 10 (41%) still lack confidence they are saving enough.
That uncertainty is delaying exit plans. Owners now expect to retire at an average age of 68, up from 65 in both 2024 and 2022, the report said.
Despite those anxieties, businesses are increasingly stepping up to support employees' long-term financial security. Nearly 3 in 10 (29%) now offer a 401(k) plan, up from 24% in 2024. More than three-quarters (76%) said they believe providing retirement benefits is part of their responsibility as business owners.
The small-business sector remains resilient despite ongoing challenges. While 63% of survey respondents said they remain concerned about market volatility, only 19% described themselves as "very" or "extremely" concerned, down sharply from 41% in 2020. Overall, 68% reported increased confidence in their business outlook compared to last year, prompting planned investments in marketing and sales (58%) as well as AI solutions (40%).
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