In our 36 combined years of service in the United States Senate, we served on opposite sides of the aisle. Still, we agreed on this: America’s 36 million small businesses are the heart and soul of our economy. Our job was to give them every tool to compete and every possible advantage because these enterprises employ nearly half of private-sector employees.
Today, no technology matters more for local businesses than artificial intelligence, yet many policymakers at the federal and state levels are on the verge of getting it wrong.
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AI’s efficiency gains are already showing up in day-to-day operations and bottom lines across the country. For the mechanic in North Dakota, AI can answer calls after closing, schedule appointments, and generate invoices, allowing the owner and staff to spend more time fixing cars.
MAIN STREET INNOVATION: THE BEATING HEART OF AMERICA’S NEXT 250 YEARS
Stories like these are becoming the norm, not the exception. Across industries, small businesses are using AI to do more with less. Small manufacturers can now boost their productivity and competitiveness through AI for scheduling, predictive equipment maintenance, and supply chain forecasting — capabilities that used to require a Fortune 500 budget.
This transformation extends to our neighborhood businesses, which can now scale their marketing and inventory management without depleting their limited resources. The local florist can use AI to predict which arrangements will sell near Mother’s Day, draft social media posts, and manage online orders without hiring a marketing firm. In each case, AI is lowering the high barriers that once held small businesses back.
Beyond these individual anecdotes, the data reinforce the reality on the ground. A survey of small business operators found that 94% of these local entrepreneurs reported that AI had a positive impact on their businesses. Another poll showed that 67% of small-business marketers believe AI will enable them to “punch above their weight.”
These AI gains translate directly to bottom-line growth. According to Salesforce research, 83% of sales teams using AI saw revenue growth in the past year, compared to just 66% of teams without it.
At the core of this expansion is a simple factor: time. Instead of spending hours performing back-office tasks, small businesses can focus on serving their customers. A recent economic analysis showed that lower administrative costs driven by AI increase both productivity and employment growth.
But this momentum is at risk. As small businesses gain ground in the marketplace, they are running into a wall of regulatory unpredictability. From our years representing North Dakota and Georgia, respectively, we know how quickly that kind of uncertainty stalls hiring, investment, and growth.
Today, while American AI struggles to navigate a patchwork of 50 different state regulations, China is investing aggressively in AI through a centralized national strategy. A small business owner shouldn’t need a team of lawyers to figure out which state’s rules apply to the AI tools they use every day. When we regulate by zip code, we give our global competitors the upper hand.
To stay competitive, the federal government should codify the nation’s AI Action Plan into law to establish a clear national AI framework to prevent a costly patchwork of conflicting state rules. China is integrating AI into its entire manufacturing and service sectors with state-backed clarity. America cannot afford to be the country that invented the technology but regulated its own small businesses out of leveraging it.
The ripple effects of restrictive state AI legislation are clear. Decisions made at the state and local level will have a national impact. State lawmakers should stop legislating out of fear of the unknown and instead focus on how we can make America more competitive: expanding energy and grid capacity, fast-tracking permitting, building skilled trades workforce pipelines, and driving AI adoption across industries and government.
Lawmakers should help drive growth for small businesses in their states rather than slow their progress by undermining AI development. It’s time for Congress to put small businesses ahead of regulation and bureaucracy.
FIGHT MONEY LAUNDERING WITHOUT PUNISHING SMALL BUSINESSES AND HOMEBUYERS
As we celebrate Small Business Month this May, we are reminded that our experience in government has shown that when Main Street has the right tools, America thrives. Small businesses around the country are prepared to lead the AI revolution.
The choice now is whether Washington will empower them or hold them back.
Kent Conrad represented North Dakota in the Senate as a Democrat from 1986 to 2013. Saxby Chambliss represented Georgia in the Senate as a Republican from 2003 to 2015. Both serve as advisers to the American Edge Project.
