AI Momentum Belongs to Small Businesses – CPA Practice Advisor

Report on Artificial Intelligence Adoption in Small and Midsized Businesses and its Alignment with Sustainable Development Goals

Introduction: AI as a Catalyst for Sustainable Development

The adoption of Artificial Intelligence (AI) by Small and Midsized Businesses (SMBs) is accelerating at an unprecedented rate, narrowing the technological gap with large enterprises to approximately one year. This trend is a significant driver for achieving several Sustainable Development Goals (SDGs), particularly SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry, Innovation, and Infrastructure), and SDG 10 (Reduced Inequalities). The structural agility of SMBs, characterized by fewer approval layers and faster decision-making, allows them to deploy AI in a manner that fosters innovation and sustainable economic progress.

Accelerated Adoption and its Impact on SDG 9: Industry, Innovation, and Infrastructure

The rapid integration of AI technology within the SMB sector represents a significant advancement in fostering innovation and upgrading industrial capabilities, a core target of SDG 9. Data indicates a substantial increase in AI utilization.

• A Thryv survey reports that AI usage among U.S. SMBs increased from 39% in 2024 to 55% in 2025, a 41% year-over-year growth.
• A McKinsey report shows that global AI adoption among companies with 10 to 100 employees grew from 47% to 68% in one year.

This rapid uptake demonstrates that SMBs are leveraging accessible AI platforms to build resilient and innovative business infrastructures, approaching enterprise-level adoption rates and contributing to inclusive and sustainable industrialization.

Strategic AI Deployment for SDG 8: Decent Work and Economic Growth

SMBs are strategically deploying AI in functions directly linked to revenue generation and customer engagement, which promotes sustained, inclusive, and sustainable economic growth as outlined in SDG 8. This contrasts with large enterprises, which primarily focus on internal IT and security automation.

Key Areas of AI Deployment Plans in SMBs:

1. Marketing and Customer Engagement: 77% of SMBs believe AI in this area would have a significant impact.
2. Content Creation: 84% of SMBs are willing to automate marketing content creation.
3. Customer Service: 59% are open to automating customer service functions.

By concentrating AI in these customer-facing roles, SMBs are not only enhancing their competitiveness but also driving economic productivity and creating value.

Measurable Returns and Contribution to Economic Growth (SDG 8)

The investment in AI is yielding quantifiable economic benefits for SMBs, directly supporting the achievement of higher levels of economic productivity under SDG 8.

• Revenue Growth: 91% of SMBs report revenue increases from AI, with 51% of generative AI adopters seeing increases of 10% or more.
• Operational Scaling: 87% state that AI helps them scale operations efficiently.
• Profitability: 86% observe improved margins.
• Productivity Gains: SMBs report saving over 20 hours and $500 to $2,000 in monthly costs.

These outcomes demonstrate that AI is a powerful tool for strengthening the long-term competitiveness and financial health of SMBs, which are crucial for broad-based economic stability.

Workforce Impact: Fostering Decent Work and Skills Development (SDG 8 & SDG 4)

Contrary to concerns about job displacement, AI adoption in SMBs is fostering workforce expansion and skills development, aligning with SDG 8’s goal of full and productive employment and SDG 4’s emphasis on lifelong learning.

• 82% of AI-using small businesses increased their workforce in the past year.
• 34% of entrepreneurs using AI have upskilled their existing employees.
• Job postings from SMBs seeking AI expertise rose by 44% between January and July 2025.

AI is functioning as a capacity multiplier, enabling SMBs to handle increased workloads and invest in their human capital through upskilling, thereby promoting decent work and economic resilience.

The Training Imperative and its Link to SDG 4: Quality Education

A significant challenge that affects all organizations is the AI skills gap, highlighting the critical need for accessible and quality training as envisioned in SDG 4. This gap presents an obstacle to maximizing the benefits of AI for sustainable development.

• 95% of SMB decision-makers acknowledge the need for more AI training.
• 90% of SMB employees who received AI training reported improved performance.

Closing this execution gap through formalized, role-based training is essential. By investing in education and creating “power users,” businesses can convert AI experiments into durable, margin-positive workflows, thereby ensuring that technological advancements lead to inclusive and equitable opportunities.

Conclusion: AI as a Tool for Reducing Inequalities (SDG 10)

The current trend of AI adoption establishes that SMBs are not merely catching up but are leveraging technology to gain a competitive edge. By adopting AI faster than predicted and concentrating it on revenue-generating functions, SMBs are challenging traditional economic hierarchies. This dynamic helps to reduce inequalities (SDG 10) between small and large enterprises, fostering a more balanced and competitive economic landscape. The ability of SMBs to translate AI from concept to utility quickly underscores their vital role in driving innovation (SDG 9) and sustainable economic growth (SDG 8) for all.

Analysis of the Article in Relation to Sustainable Development Goals

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 8: Decent Work and Economic Growth
   • The article extensively discusses how AI adoption by Small and Midsized Businesses (SMBs) leads to productivity gains, revenue boosts (91% of SMBs), improved margins (86%), and operational scaling (87%). It also highlights positive workforce effects, such as job creation (82% of AI-using SMBs increased their workforce) and upskilling of employees, which directly contribute to promoting sustained, inclusive, and sustainable economic growth and productive employment.
2. SDG 9: Industry, Innovation, and Infrastructure
   • The core theme of the article is the rapid adoption of innovative technology (AI) by SMBs. It details how accessible AI platforms are accelerating this adoption, closing the technology gap with large enterprises from “multiyear” to “approximately a one-year difference.” This relates to fostering innovation and upgrading the technological capabilities of industrial sectors, particularly for smaller enterprises.
3. SDG 4: Quality Education
   • The article identifies a significant “training problem” and “skills gap” as a major challenge. It states that 95% of SMB decision-makers need more AI training and that 90% of employees who received training reported better performance. This connects to the goal of ensuring inclusive and equitable quality education and promoting lifelong learning opportunities, specifically regarding technical and vocational skills for employment.
4. SDG 10: Reduced Inequalities
   • The article highlights a “reversal of the typical enterprise technology adoption pattern,” where SMBs are deploying AI at rates that rival large enterprises. The narrowing of the technology gap indicates a reduction in inequality of opportunity and access to advanced technology between small and large businesses, empowering SMBs to compete more effectively.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Under SDG 8 (Decent Work and Economic Growth):
   • Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation. The article provides direct evidence of this with data on SMBs reporting revenue boosts, improved margins, and productivity gains (saving 20+ hours monthly) through AI adoption.
   • Target 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the growth of micro-, small- and medium-sized enterprises. The entire article focuses on how innovation (AI) is fostering the growth, competitiveness, and job creation capacity of SMBs.
2. Under SDG 9 (Industry, Innovation, and Infrastructure):
   • Target 9.3: Increase the access of small-scale industrial and other enterprises to… their integration into value chains and markets. The article shows how accessible AI platforms are increasing SMBs’ access to sophisticated technology, allowing them to enhance customer-facing functions and improve their market competitiveness.
   • Target 9.c: Significantly increase access to information and communications technology. The rapid increase in AI usage among SMBs, from 39% to 55% in one year in the U.S., is a clear example of increased access to and adoption of advanced ICT.
3. Under SDG 4 (Quality Education):
   • Target 4.4: Substantially increase the number of youth and adults who have relevant skills, including technical and vocational skills, for employment, decent jobs and entrepreneurship. The article’s emphasis on the need for AI training (95% of decision-makers) and the upskilling of existing employees (34% of entrepreneurs) directly relates to this target.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. Indicators for SDG 8 (Targets 8.2 & 8.3):
   • Percentage of SMBs reporting revenue boosts from AI (91%).
   • Percentage of SMBs reporting improved margins (86%).
   • Percentage of AI-using SMBs that increased their workforce in the past year (82%).
   • Percentage increase in job posts from SMBs seeking AI expertise (44%).
   • Monthly cost savings reported by small businesses ($500 to $2,000).
2. Indicators for SDG 9 (Targets 9.3 & 9.c):
   • Year-over-year percentage increase in AI usage by U.S. SMBs (41%).
   • Change in the proportion of companies with 10 to 100 employees using AI (from 47% to 68% in one year).
   • The reduction of the AI adoption gap between SMBs and large enterprises (from multiyear to one year).
3. Indicators for SDG 4 (Target 4.4):
   • Percentage of SMB decision-makers who state they need more AI training (95%).
   • Percentage of AI-using entrepreneurs who have upskilled existing employees (34%).
   • Percentage of employees reporting better performance after receiving AI training (90%).

4. Summary Table of SDGs, Targets, and Indicators

Source: cpapracticeadvisor.com