In an era of economic uncertainty and rapid technological change, small business owners across the U.S. are stepping into the next 12 months with a surprising degree of confidence and optimism. This resilience is particularly notable in the construction sector, where small businesses are navigating a complex landscape of innovation, regulation, and market demand. The first edition of the Comerica Small Business Pulse Index, a national survey of 1,010 small business owners conducted in August, reveals a sector that is not only optimistic but increasingly tech-forward, with a keen eye on the responsible adoption of emerging technologies.
“Small businesses are the heartbeat of our communities and local economies,” said Larry Franco, executive vice president and national director of retail and small business banking at Comerica Bank. “It’s imperative to be tapped into what’s influencing and impacting small businesses. We launched the Comerica Small Business Pulse Index to do exactly that – identify successes and challenges these businesses are facing right now to help a broad group of entities, from financial providers to consumers and other business owners, better know how to serve, support and strengthen small businesses around them.”
The survey highlights several key trends that are reshaping the construction industry and beyond. One of the most striking findings is the accelerating adoption of artificial intelligence (AI) among small businesses. Forty-five percent of surveyed small businesses report using AI tools today, with adoption highest in the Technology (64%) and Professional Services (58%) sectors. In construction, AI is increasingly being used for project management, design optimization, and predictive maintenance, enabling firms to enhance efficiency and reduce costs.
However, the adoption of AI is not without its challenges. Mistakes, tech vulnerabilities, and learning curves are the top concerns for both current and prospective AI users. This caution is particularly relevant in the construction sector, where the precision and safety of projects are paramount. The industry’s cautious embrace of AI reflects a broader trend: small business owners see the potential of AI but also understand the need for responsible oversight.
“Small business owners see the potential of AI, but they also understand the need for responsible oversight,” said Franco. This sentiment is echoed in the survey data, which shows that while AI users, as a whole, are less likely than non-users to support stricter regulation, those in the Technology and Professional Services industries— which lead in both adoption rate and breadth of use—are actually more supportive of increased oversight compared to AI users in other industries. This suggests that those most experienced with AI may also be the most attuned to its potential risks.
Support for stricter AI regulation also varies considerably by age. Whereas younger business owners are more likely to embrace AI with fewer restrictions, older generations show a stronger preference for oversight. Just 42% of Gen Z respondents favor tighter regulation, compared to 53% of Millennial respondents, 57% of Gen X respondents, and 66% of Baby Boomer respondents. This generational divide underscores the evolving nature of the debate around AI and its implications for the future of work.
Despite these concerns, most small business owners responding to the survey remain optimistic about AI’s impact on employment. A total of 64% of all small businesses surveyed do not believe AI will replace jobs in their industry within the next five years. This sentiment is even stronger among those not planning to adopt AI (74%), with a majority of current AI users (60%) also sharing the same view. This indicates a broad confidence in AI as a complement rather than a threat to the workforce.
The survey also reveals a mixed outlook on capital investment (CapEx). While 32% of the respondents plan to invest up to $100,000 in the next 12 months, 45% report no CapEx plans. Technology and Construction industries lead in planned investment, reflecting the sector’s focus on innovation and efficiency. This investment is crucial for driving growth and competitiveness in an increasingly digital and sustainable construction landscape.
Confidence is strong among small business owners, with 83% of surveyed small businesses confident in their future success, especially those with $500,000+ in revenue and/or 10+ employees. This confidence is particularly pronounced among firms that have been in operation for four to seven years, outpacing both younger startups and more established firms. Market outlooks are similarly upbeat, with nearly two-thirds of respondents expecting conditions to improve. Optimism is strongest in the Midwest and South, where 67% anticipate better conditions, compared to 56% in the Northeast and 60% on the West Coast.
Sales growth expectations are robust, with 81% of the responding small businesses anticipating gains. While 41% project modest growth of 1-10%, nearly 30% expect double-digit increases. The Technology sector stands out as the most bullish, while Retail