The House Committee on Small Business held a hearing on Jul. 14 to discuss how artificial intelligence is influencing small business operations, productivity, and competitiveness. The session, titled “AI on Main Street: How AI is Shaping the Future of Small Business,” also addressed obstacles that small businesses face when adopting AI technologies and explored available support programs.
Chairman Roger Williams said, “Artificial intelligence is rapidly becoming one of the most valuable tools available to small business owners. From streamlining product sourcing to improving inventory management, AI is helping entrepreneurs spend less time on routine tasks and more time growing their businesses and serving their customers. But for many small businesses, the greatest challenge isn’t access to AI—it’s having the training and knowledge to use it effectively. That’s why this Committee and the Small Business Administration are working to expand the resources and educational opportunities Main Street needs to adopt AI with confidence, while ensuring unnecessary red tape doesn’t stand in the way of innovation.”
During questioning, Williams asked about variation in adoption rates across sectors. Mr. Crenshaw responded that 58% of small businesses nationwide are using generative artificial intelligence based on survey data. He added that adoption rates are higher among smaller tech firms at around 70%, with entertainment companies at 65%. Crenshaw said about half of retailers, restaurants, and traditional brick-and-mortar companies have adopted generative AI as well. He cited an example from a skin care company owner who used generative AI for cost savings by sourcing products from regions with lower tariffs or inflation-driven costs.
Crenshaw said that regulatory uncertainty prevents about a third of non-adopting companies from using generative artificial intelligence; one in five report difficulty finding trained workers; another third remain unsure how it would work for them. He stated that establishing clear national frameworks like the Secure Data Act for data privacy, along with training programs such as the AI for Main Street Act, would help address these barriers.
Rep. Van Duyne discussed open versus closed model ecosystems with Mr. Hoang, who said: “To be clear, I’m neither pro-open nor anti-open nor pro-closed…I believe in choice…Choice provides competition; it gives consumers the opportunity to use the best models…We obviously are familiar with closed models that are cutting on the frontier edge…There are also several open models that are very close…They’re driving down cost…You can choose what models you want to use…I think we need more competition.” Hoang emphasized greater access will produce better products through market forces.
Rep. Bresnahan questioned Mr. Qaiyum about when he began exploring AI implementations in his business operations. Qaiyum replied: “Thank you for the question…I’ve always been into technology…So I’ve been following it for at least a few years now…and I’ve been the person testing it out…then bringing it to my team…for me…I happen to be personally interested…but I know that’s not most of my small business friends…the other business owners on the block…I think we do need support in that sense.”