Small businesses are rapidly adopting artificial intelligence (AI) due to competitive pressures. This article explores the current uses of AI in small businesses and its potential impact on their operations.According to a recent survey by the U.S. Chamber of Commerce, 58% of small businesses are already using generative artificial intelligence (AI), up from 40% in the previous year. This adoption is driven by various applications such as chatbots, AI coding tools, and image creation tools.Small businesses are using AI to improve sales, customer retention, cost savings, and operational efficiency. They are also leveraging AI in software for marketing, payroll, accounting, inventory management, human resources, and communications. Additionally, some companies use AI to navigate tariffs, find lower-cost suppliers, process returns, fulfill last-minute deliveries, prevent fraud, and develop customer insights.