The Firm-Size Digital Adoption Gap in the U.S. Small-Business Sector: Evidence from the Census Bureau’s BTOS Artificial Intelligence Supplement

Abstract

Background: Artificial intelligence (AI) is a transformative general-purpose technology with important implications for business productivity and competitiveness. However, smaller firms tend to lag behind larger enterprises in AI adoption. This study examines the firm-size AI adoption gap, the depth of adoption, non-adoption barriers, and variations across industries and geographic areas. Methodology: The study uses public-release tabulations from the U.S. Census Bureau’s Business Trends and Outlook Survey (BTOS) AI Supplement, conducted between November 2025 and February 2026. The dataset provides national, employment-size, 2-digit NAICS sector, state, and metropolitan-area estimates. Unadjusted univariate and two-way descriptive comparisons were conducted using Census-published standard errors and 95% confidence intervals, with OECD, SBA Office of Advocacy, and Census Bureau publications providing contextual benchmarks.