Business Owners Express Cautious Hopes for Q1 despite Tariff and Economic Woes, Report by OnDeck Indicates
In a nationwide survey conducted between February 17-27, 2025, it has been revealed that the adoption of Artificial Intelligence (AI) among small businesses for marketing functions has seen a substantial surge. According to recent surveys and analyses, over 55-68% of small businesses are actively using AI tools, marking an increase of around 41% compared to 2024.
The findings are based on responses from 437 small businesses with existing working capital loans and data from over 2 million small business applications submitted for working capital financing over the past 15 months.
The survey reveals that more than 75% of small business owners use AI for marketing functions, including automating content marketing, personalised promotions, ad copy generation, and social media postings. Content marketing is particularly highlighted as the most popular AI application within marketing.
Small businesses report saving over 20 hours per month on marketing tasks, increasing customer engagement by 25–30%, and reducing marketing expenses by 15–20% thanks to AI-driven automation and insights.
Common AI applications include generative AI for content creation, AI-powered chatbots for 24/7 customer service, AI-based CRM systems with lead scoring, and automatic ad targeting on platforms like Google and Meta.
Younger business owners and those in professional services and retail sectors lead adoption, with digital marketing AI also evolving rapidly in emerging markets such as India where over 50% of medium SMEs adopt AI marketing tools as of 2025.
The optimism about growth among small businesses is slightly lower than the previous quarter, with 93% of small businesses anticipating either significant or moderate growth in 2025. This optimism is reflected in the report, which shows that 76% of small businesses are bypassing traditional banks in favor of non-bank lenders, marking an all-time high in the survey's history.
In response to potential tariff changes, more than half of small businesses (55%) have already taken preemptive action. The small business community is resilient and working hard to prepare for environmental factors such as tariffs, according to Jim Granat, Co-President of Small Business at Enova.
OnDeck, part of Enova International (NYSE: ENVA), is committed to supporting small businesses with accessible, transparent, and dependable financing. Together with Ocrolus, they aim to provide actionable insights to help small businesses better understand their financial positions and plan accordingly. The full report, including detailed survey results, is available at ondeck.com/small-business-trends.
AI-powered analytics infrastructure is enabling lenders to evaluate real-time cash flow data to identify more qualified businesses and expand access to the capital they need. The shift from experimentation to essential business strategy marks AI as a cornerstone for small business competitiveness this year. Digital transformation continues to take root among smaller enterprises, as indicated by the increased use of AI.
- The survey results indicate that more than 75% of small business owners are utilizing Artificial Intelligence (AI) for their marketing functions, and they are saving over 20 hours per month on marketing tasks due to AI-driven automation.
- Despite the optimism about growth among small businesses being slightly lower than the previous quarter, small businesses are continuing to embrace technology, with over 76% of them bypassing traditional banks in favor of non-bank lenders like OnDeck, which is committed to supporting small businesses with AI-powered analytics infrastructure.
