AI use by businesses is small but growing rapidly, led by IT sector and firms in Colorado and DC

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The rate of businesses in the U.S. using AI is still relatively small but growing rapidly

The rate of businesses in the U.S. using AI is still relatively small but growing rapidly, with firms in information technology, and in locations like Colorado and the District of Columbia, leading the way, according to a new paper from U.S. Census Bureau researchers.

Overall use of AI tools by firms in the production of goods and services rose from 3.7% last fall to 5.4% in February, and it is expected to rise in the U.S. to 6.6% by early fall, according to the bureau's Business Trends and Outlook Survey released this spring.

The use of AI by firms is still rather small because many businesses haven't yet seen a need for it, Census Bureau researchers said in an accompanying paper.

“Many small businesses, such as barber shops, nail salons or dry cleaners, may not yet see a use for AI, but this can change with growing business applications of AI,” they said. “One potential explanation is the current lack of AI applications to a wide variety of business problems.”

Few firms utilizing AI tools reported laying off workers because of it. Instead, many businesses that use AI were expanding compared to other firms. They also were developing new work flows, training staff on the technology and purchasing related services, the researchers said.

The rate of AI use among business sectors varied widely, from 1.4% in construction and agriculture to 18.1% in information technology. Larger firms were more likely to be using the technology than small and midsize firms, but the smallest firms used it more than midsize businesses, according to the researchers.

The type of work AI was used for the most included marketing tasks, customer service