The use of artificial intelligence (AI) by businesses in the U.S. is on the rise, according to a new paper from U.S. Census Bureau researchers. The overall use of AI tools in the production of goods and services increased from 3.7% to 5.4% from last fall to February, and is expected to reach 6.6% by early fall. However, many businesses have not yet seen the need for AI, especially smaller businesses like barber shops and nail salons. The lack of AI applications for a wide variety of business problems could be a potential reason for this.
Despite the growth in AI utilization, few firms using AI tools reported laying off workers because of it. Instead, businesses that use AI were expanding compared to other firms, developing new workflows, training staff on the technology, and purchasing related services. The rate of AI use varied across different business sectors, with information technology leading at 18.1% and construction and agriculture lagging at 1.4%. Larger firms were more likely to use AI than small and midsize firms, but the smallest firms used it more than midsize businesses.
The most common uses of AI in businesses included marketing tasks, customer service chatbots, language understanding, text and data analytics, and voice recognition. However, there are challenges associated with using AI, as highlighted by Erik Paul, the COO of a software development company in Orlando. Paul mentioned that while AI has become an integral part of their day, there are instances where the technology can’t be blindly trusted, as it may introduce errors or change the tone of the content being created.
The states with the highest AI adoption rates among firms were Colorado and the District of Columbia, followed by Florida, Delaware, California, and Washington State. Mississippi had the smallest AI utilization rate. The survey also showed some uncertainty among firms regarding their future adoption of AI, with two-thirds of non-users stating they plan to remain non-users and 14% unsure if they will adopt it. Additionally, 14% of current users reported they did not expect to continue utilizing AI in the near future, indicating ongoing experimentation or temporary use.
The Census Bureau plans to continue tracking AI use by businesses to understand its impact on the economy. Ron Jarmin, the Census Bureau’s deputy director, expressed the importance of measuring the diffusion of this technology through the economy. This ongoing monitoring will provide valuable insights into the adoption and utilization of AI by businesses in the U.S.
