While discussions about artificial intelligence often focus on tech giants, its transformative impact is increasingly evident in small businesses across the U.S. New data from the CNBC|SurveyMonkey Small Business Survey reveals that AI is not only boosting productivity but is also beginning to influence staffing decisions and operational strategies.

The survey indicates that 37% of small business owners currently use AI to help run their operations, and of those, 75% report it is already making a positive impact. Looking ahead, the commitment to the technology is strong: 71% of current users plan to increase their investment, and 17% of non-users expect to begin investing in AI soon.

A clear generational divide exists in adoption and enthusiasm. Younger entrepreneurs are leading the charge: 59% of Gen Z and 51% of millennial small business owners report using AI, compared to 34% of Gen X and 29% of baby boomers. This gap extends to future investment plans, with 59% of Gen Z and 55% of millennials intending to increase spending on AI tools, versus 35% of Gen X and 25% of boomers.

For younger adopters, AI is viewed as a strategic advantage. An overwhelming 89% of Gen Z and millennial users report a positive impact from AI, a sentiment less pronounced among older generations (74% of Gen X and 59% of boomers).

Perhaps more significantly, AI is beginning to reshape small business workforce dynamics. Over half (54%) of small business owners who use AI say it has impacted their headcount—20% have already reduced employees due to AI, and 35% say they may do so in the future. This trend is most pronounced among the youngest business leaders, with 69% of Gen Z and millennial owners reporting staffing changes, compared to 50% of Gen X and 36% of boomers.

The data underscores that AI is becoming woven into the fabric of Main Street business operations. The differing rates of adoption and implementation across generations may signal deeper, ongoing shifts in workplace culture and leadership approaches in the years to come.