The business landscape is increasingly filled with AI tools and technologies, but younger entrepreneurs—particularly those from Gen Z and millennial generations—are showing a much higher interest in adopting these innovations compared to their older counterparts, such as Gen Xers and baby boomers.
This insight comes from a recent survey by American Express, conducted by Morning Consult, which gathered responses from over 1,100 small business financial decision-makers. The survey highlighted a significant generational divide in the adoption of AI for small business operations. Specifically, nearly 60% of millennial and Gen Z respondents reported that their businesses are already using AI in some capacity, whereas only 34% of Gen X and baby boomer respondents said the same.
The survey also revealed differences in how various generations are implementing AI in their businesses.
Younger business leaders are primarily using AI for automating tasks and analyzing cash flow, while older respondents are more focused on utilizing AI for chatbots, virtual assistance, fraud protection, and managing their workforce. Across all generations, the most common applications of AI include customer data analysis, deploying chatbots or virtual assistants, and creating content.
Even those skeptical about AI acknowledge its benefits Overall, the survey offers a clearer picture of how small businesses are incorporating AI and how usage varies across generations.
While many older Americans approach AI with caution, they are also recognizing the benefits of AI tools in certain areas. Some seniors are even taking classes to become more familiar with AI.
However, younger individuals are also proceeding cautiously. A report released in June found that only 4% of Gen Zers use AI tools regularly.
Consumers aren’t always enthusiastic about AI either. A recent study from Washington State University discovered that some consumers tend to avoid products labeled with AI, preferring traditional “non-smart” versions when given a choice.
Nonetheless, the new Amex survey provides an intriguing look at the generational differences in AI adoption among small businesses. Whether this leads to varying levels of profitability between these approaches remains uncertain.