Report: 87% Of US Small Businesses Now Use AI For Marketing

Emily Lauderdale
woman in white shirt using smartphone; small business owners

AI usage among US small businesses has reached 87%, up from 26% in 2023, according to Constant Contact’s Small Business Now report, as detailed in a July 20, 2026 interview with chief executive Frank Vella. The study surveyed more than 5,000 small business owners and consumers. The headline finding is not the tooling, though. It is that 73% of small business owners now describe themselves as creators, which is a change in job description rather than a change in software.

What The Report Found

Of the owners surveyed, 40% identify primarily as creators and 33% see themselves as owner and creator hybrids. Nearly half, 47%, handle all their social media management personally rather than delegating it. Social media has become the top digital discovery channel, used by 49% of consumers globally to find new small businesses, ahead of search engines at 40%. That ordering reverses the assumption most solo marketing plans were built on. Owners are using AI mostly to write copy and content (42%) and to analyze data (38%). Rather than increasing spend, 40% of small and medium businesses are pivoting to AI and automation specifically to manage the marketing workload they already have.

Why This Matters For Self-Employed Owners

If half of discovery now happens on social platforms, a solo business that only invests in search visibility is missing the larger doorway. That is a reallocation question, not an additional budget question. The consumer picture is genuinely mixed. Preference for shopping primarily at small businesses has nearly tripled over five years, from 10% in 2021 to 27% in 2026, yet 49% of US consumers say they have scaled back small business spending because of inflation and rising costs. Vella’s framing is that retailers should think less like advertisers and more like publishers. For a freelancer or microbusiness owner, that means consistent content is now closer to a core operating cost than a marketing extra.

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What Self-Employed Readers Should Do Next

Audit where your last ten clients actually found you. If the answer skews toward referrals and social rather than search, your time is better spent on a repeatable content rhythm than on another round of keyword work. Use AI to remove the blank-page problem rather than to replace your voice. Drafting, subject lines, scheduling, and repurposing one piece into three are the tasks where automation buys back hours without flattening what makes your work distinctive. Build on channels you own alongside the ones you rent. Email lists and customer databases survive algorithm changes, and creators have already been shifting from rented reach to owned audiences in 2026 for exactly that reason.

What To Watch Next

Watch whether AI adoption at 87% starts producing content saturation that pushes discovery costs back up. When every competitor can generate output instantly, the scarce asset becomes distinctiveness rather than volume. Also watch consumer spending. The gap between rising preference for small businesses and falling actual spend is the tension in this report, and whether inflation eases will decide which of those two numbers moves toward the other.

Photo by bruce mars: Unsplash

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Emily is a news contributor and writer for SelfEmployed. She writes on what's going on in the business world and tips for how to get ahead.