AI adoption becomes top priority as small businesses brace for 2026 shift: Report

A new LinkedIn report shows 45% of small businesses cite adopting new technology as their biggest opportunity, and roughly 60% say AI is critical to growth, underscoring how digital tools are reshaping small-business strategy heading into 2026. The study also finds that small firms account for 90% of all businesses and 70% of global GDP, placing them at the centre of the next wave of economic change.

The report, based on responses from 160 million professionals and more than 18 million small businesses, indicates rising optimism among founders despite slowing global growth. Nearly 4 in 10 professionals globally say AI has made them more likely to start a business, and members adding ‘founder’ to their profiles have increased 60% year over year, nearly tripling since July 2022. India leads that trend with a 104% jump. 

“Those who invest strategically in skills while building on their existing relationships are positioned to compete in ways that weren't possible before,” said Karin Kimbrough, Chief Economist, LinkedIn. 

AI usage is already widespread, with 85% of small businesses across several countries using AI in some form, though most are still early in their implementation. In the U.S., 59% of small-business executives plan to adopt AI across their organisations in 2026, up five points from last year. 

Skills development is also accelerating. AI engineering skills in U.S. companies with 11-50 workers grew 19% year over year, compared with 14% in large firms. AI literacy grew even faster at 44% in the same segment. Nearly half of small-business professionals (46%) say they are learning AI on their own time.

The report highlights brand credibility as another major focus area. Building brand and reputation is the top strategic priority for 38% of small-business owners, and 61% say they have become content creators to reach consumers directly. 71% say showing up authentically online matters, and 72% of marketers say audiences verify information through people they trust before making decisions.

Networks are emerging as a third growth driver. 70% of professionals globally say building relationships matters more than ever, and 73% of small-business leaders consider networking essential for long-term growth. U.S. professionals at small firms grew their LinkedIn connections 17% year over year, surpassing large companies at 10%.

The report also finds that trusted connections influence operations: 63% of small-business professionals say their community helps them make faster decisions, and more than 50% of small businesses globally say mentorship and access to networks support growth.

Aneesh Raman, Chief Economic Opportunity Officer, LinkedIn, noted that small businesses are positioned to benefit from generative AI’s broader economic impact. “We should all be rooting for small businesses right now. They create the majority of new jobs globally, especially in emerging markets, and AI gives them a real shot to compete in ways that weren't possible before. The entrepreneurial skills you develop, building something from nothing, resourcefulness, speed, and creativity, are exactly what this economy will reward most,” he said.

The report estimates that generative AI could unlock up to $6.6 trillion in productivity across major economies, with small and medium-sized businesses potentially capturing more than 30% of that value depending on the country.