AI use: spreading, but not taking over the world yet

“In the last two weeks, did this business use AI in any of its business functions?”
Percent answering yes

Source: US Census Bureau Business Trends and Outlook Survey, as of May 26, 2026.

Since ChatGPT was launched to the public in November 2022, artificial intelligence has been the dominant global investment theme for both public and private equity markets. Predictions of its revolutionary potential for the economy are easy to find. Sandar Pichai, CEO of Alphabet, said that AI will be “more profound than electricity or fire or anything we’ve done in the past.”

That may prove to be so, but four years into the AI era, how ubiquitous is its use in corporate America? As the chart shows, companies reporting use of AI in its business functions has risen by a factor of four since 2024. Still, less than 25% of businesses taking the survey report material use of AI in their operations. This statistic is bound to rise – the only question is how quickly.

Another insight from this survey is the dispersion of AI utilization by industry. Not surprisingly, the Information sector – comprising technology, software and data – had the highest adoption rate. Next was Professional, Scientific, and Technical industries. Very low adoption rates (under 5%) were reported in Construction, Manufacturing and Agriculture. The survey also shows large companies with higher adoption rates and smaller companies lagging behind.

What we’re watching this week

Tuesday: Election day in the US will determine the balance of power in Washington for the remainder of President Trump’s term.

Friday: The October employment report is released. Last month’s reading showed a material slowdown in hiring.