The share of the nation’s economy stemming from small businesses — “the lifeblood of the U.S. economy” — has waned since 1998, according to a new report by Kathryn Kobe and Richard Schwinn on behalf of the U.S. Small Business Administration’s Office of Advocacy. Despite overall growth in small business GDP, the number of small businesses and their employment levels have not yet recovered from their pre-recession value.

By automating routine tasks, improving data analysis, and enhancing marketing efforts, AI can revolutionize how small firms conduct business—and that should impact the type of assistance technology-based economic developers offer their innovation-driven entrepreneurs. Understanding how small business owners perceive and utilize AI is crucial for developing strategies that support their growth and competitiveness.