Census Data Shows Smallest Firms Leading Small-Business AI Adoption

Renee Johnson
Two colleagues reviewing data on a laptop.; Census BTOS AI adoption

The U.S. Census Bureau released its April 23, 2026, Business Trends and Outlook Survey (BTOS) data drop, and it lands with pointed news for solopreneurs. National AI use among U.S. businesses now sits at 17.3 percent as of late 2025, with more than 20 percent of firms expecting to adopt AI in the first half of 2026. The smallest of the small firms are pulling ahead of their mid-size peers.

The BTOS release also shows a widening performance gap between AI adopters and non-adopters, a signal that should shape how self-employed operators prioritize tools this quarter. For one-person businesses weighing whether a ChatGPT, Claude, or niche vertical tool is worth the subscription fee, the new federal data provide the clearest benchmarks yet.

What The New BTOS Data Show

Firms with one to four employees now post the second-highest AI adoption rate in the small-business universe, rising from 4.6 percent to 5.8 percent in the latest round. Medium-sized classes (5 to 9, 10 to 19, 20 to 49, and 50 to 99 employees) trail at roughly 3 to 4 percent. Firms with 250 or more employees continue to lead overall.

The pattern forms a U-shape across the size distribution, with solo operators and large enterprises both outrunning the middle. Information services (NAICS 51) and professional, scientific, and technical services (NAICS 54) lead by sector, which covers most freelance writers, designers, developers, marketers, and researchers.

Why This Matters For Self-Employed Workers

Among firms currently using AI, 23.1 percent of employment sits at businesses rating their current performance as “excellent,” compared with 13.8 percent for firms not using AI. Looking ahead, 62.0 percent of employment at firms expecting to use AI in the next six months is at firms that rate their future performance “above average” or “excellent,” versus 41.2 percent at firms with no plans to adopt AI.

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That gap matters for self-employed readers because it quantifies something freelancers have been feeling anecdotally. Clients that compete with AI-enabled peers are more likely to push on delivery speed, price, or both, and solo operators who have not layered in at least one tool are increasingly the vendors getting replaced on repeat work.

What Self-Employed Workers Should Do Next

Start with one repeatable task, not a full workflow overhaul. Drafting proposals, transcribing client calls, or running first-pass research are the easiest wins for most service-based solopreneurs and typically pay back the tool’s monthly cost within the first week.

Check your NAICS code against the BTOS sector data on the Census Bureau site before committing to the budget. If you are in a sector already running ahead of the national average, peer competition is real, and the upside of adoption is more immediate. If you are in a slower-moving sector, you have a short window to get in front of the curve rather than react to it.

What To Watch In The Next Release

BTOS data drops every two weeks, which gives self-employed readers a uniquely high-frequency read on how their market is shifting. The next release will show whether the smallest-firm adoption rate breaks through 6 percent and whether the 1- to 4-employee segment closes in on the largest enterprises.

A second data point worth tracking is the expected-adoption figure. If the share of respondents who “expect to use AI in the next six months” keeps climbing past 20 percent, that suggests real budget movement among peer businesses, not just curiosity. Self-employed readers can pair this with the AI freelance platform signals to judge how aggressively to reprice and reposition.

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Photo by Vitaly Gariev: Unsplash

 

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The Self Employed editorial policy is led by editor-in-chief, Renee Johnson. We take great pride in the quality of our content. Our writers create original, accurate, engaging content that is free of ethical concerns or conflicts. Our rigorous editorial process includes editing for accuracy, recency, and clarity.

Renee serves as Editor-in-Chief at SelfEmployed, where she oversees all editorial operations and strategy. A graduate of UC Berkeley with a degree in Business, Management, and Finance, she brings nearly ten years of expertise in digital media. Renee is passionate about guiding her team in producing content that empowers and informs readers. She can be contacted at [email protected].