The U.S. Chamber of Commerce just dropped their 4th annual small business technology report and there's a stat in here that should change how you evaluate deals
AlphaY Team
Content Team
The U.S. Chamber of Commerce just released their fourth annual small business technology report, surveying nearly 4,000 small businesses. And there's a pattern emerging that changes how you should think about acquisition targets.
Generative AI adoption has exploded. 23% in 2023. 40% in 2024. 58% in 2025. That's not gradual adoption. That's a structural shift in how small businesses operate.
But here's what matters for buyers: the businesses using six or more technology platforms are posting 82% sales growth since 2023. Low adopters (zero to three platforms) are at 77%. That gap compounds. And the number of high adopters increased by 4% from 2024, while low adopters dropped by 12%.
The market is sorting itself.
What this means when you're underwriting a deal
Most businesses in the $1-5M range weren't built by tech-forward operators. The previous owner ran it on spreadsheets, personal relationships, and institutional knowledge. That's not a weakness in the business model. It's a growth lever if you know what you're looking at.
When you find a profitable company with low tech adoption, you're evaluating two things simultaneously. There's competitive risk, because 84% of small businesses plan to increase their use of technology platforms and 96% plan to adopt emerging technologies. Their competitors are moving. But there's also upside, because the tools being adopted aren't experimental. They're operational basics: marketing automation, customer relationship management, accounting systems, inventory management.
82% of small businesses using AI increased their workforce over the past year. These aren't efficiency tools that cut headcount. They're growth tools that let small teams do more.
The report shows where AI is actually being deployed: marketing and promotions (46%), payroll management (44%), customer relationship management (42%). These applications translate directly to margin improvement and revenue growth. They're not moonshots. They're the blocking and tackling of modern operations.
The opportunity is in the gap
If you're running proformas on acquisition targets, the question isn't whether technology adoption matters. The data from 3,870 businesses says it already does. The question is whether you're the operator who can close the gap between where the business is and where high adopters are performing.
Most searchers bring a different skill set than the previous owner. That's the point. The seller built something that works. You're buying it because you can make it work better. Technology adoption is one of the clearest paths to do that, and the Chamber's data gives you a benchmark for what "better" looks like.
Full report: U.S. Chamber of Commerce, "The Impact of Technology on U.S. Small Business," Fourth Edition, 2025.
Sources:
- U.S. Chamber of Commerce Technology Report 2025
- U.S. Chamber: Small Businesses Rapidly Adopting AI
- The Majority of Small Businesses Embrace AI
- U.S. Chamber Technology Impact Report 2024
- Constant Contact: The AI Leap
- ITIF: How Digital Services Empower SMEs
- U.S. Chamber Foundation 2024 Impact Report
- U.S. Chamber: The Impact of Technology on Small Business