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| Format: | Preprint |
| Published: |
2025
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| Subjects: | |
| Online Access: | https://arxiv.org/abs/2505.14721 |
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Table of Contents:
- Using data from the U.S. Census Bureaus Business Trends and Outlook Survey (BTOS), I examine the adoption of AI among US firms at national, state, industry, and firm size levels. I find that adoption remains overall low (only around 7% of firms currently use AI), but is on a steady upward trajectory with a rising share of firms planning to implement AI. Adoption rates vary significantly across regions and sectors: some states are emerging as early adopters, while others lag, and knowledge-intensive industries (such as information technology and professional services) along with larger firms show higher openness to AI adoption compared to sectors like construction or small businesses. In general, these trends indicate that a quiet revolution in AI adoption is underway; a gradual but expanding diffusion of AI across the economy with important implications for future productivity and policy.