The AI Paradox: Despite Rising Confidence, Most Small Businesses Lag in Strategic AI Adoption

A significant gap is emerging between how small and medium-sized businesses (SMBs) talk about artificial intelligence (AI) and how they actually use it. According to a new global report, 81% of SMB leaders believe AI can help achieve their business goals, up from 72% in 2024. Yet only 27% say AI is regularly discussed in company-wide strategic planning.

This disconnect highlights a rising paradox: while confidence in AI is growing, its real-world implementation remains inconsistent. Based on input from over 600 business leaders, the 2025 AI Business Insights Report illuminates the critical challenges hindering businesses worldwide.

The comprehensive report highlights several key areas where AI's potential is not yet translating into widespread business transformation:

• Confidence Rising, Strategy Lags: 81% of business leaders are confident that AI can help achieve their objectives, yet only 27% report that AI is a frequent topic in formal company-wide strategic discussions. This points to a significant disconnect between belief and concrete action.
• Time Still the Top Barrier: A lack of time to thoroughly evaluate AI's benefits and drawbacks remains a primary obstacle for 35% of businesses—a figure unchanged from 2024—indicating a hesitation in dedicating resources to AI initiatives.
• Self-Taught Surge, But Training Still Sparse: Despite a surge in AI familiarity, with 59% of professionals now moderately or very familiar with AI (up from 38% in 2024), over half (52%) of those familiar with AI have not received any formal training. Most familiarity stems from self-guided learning rather than structured education.
• AI Adoption Growing—But Not Everywhere: While AI adoption is rising in departments like sales (up to 33% from 23% in 2024) and IT (up to 26% from 19%), crucial customer-facing and administrative functions such as HR (9%), Finance/Accounting (9%), and Customer Service (19%) show significantly lower adoption rates, creating internal "AI silos" that limit holistic business transformation.
• Job Impact Expectations Are Climbing: A growing majority of businesses (67%, up from 32% in 2024) now expect AI to impact job roles, underscoring the urgent need for proactive workforce planning and upskilling initiatives.

What It Means for Small and Medium-Sized Businesses

While early adopters are already using AI to automate tasks, enhance customer experiences, and make data-driven decisions, many SMBs are still stuck in "AI interest mode." Competing priorities, limited guidance, and internal bandwidth constraints are common roadblocks.

Turning Insight into Action

To help businesses move from AI interest to impactful implementation, the report recommends four strategic steps:

• Make AI a Core Conversation: Bring AI into regular leadership and departmental planning—not as a side experiment, but as a strategic lever.
• Start Small, Prove ROI: Launch targeted pilots tied to existing KPIs like lead conversion or campaign efficiency.
• Build Targeted Fluency: Offer role-specific AI training and guided learning tailored to your industry.
• Work with Expert Partners: Companies working with AI consultants are 2.5 times more likely to achieve sustainable success.

About the Report

The 2025 AI Business Insights Report, published by WSI, reflects the voices of over 600 global professionals, with 90% representing small and medium-sized businesses. It provides a grounded snapshot of how AI is being approached today, from confidence levels and departmental usage to training habits and barriers to adoption.



Explore the full 24-page report, including strategies, training tips, and cross-department case examples.

You can also dive deeper into this in our press release here.

About the Author

Part of the Marketing & Communications team at the WSI Home Office, Cecilia also heads up WSI’s Google Alliance Group.