Artificial intelligence is becoming central to how small businesses plan to grow in 2026, even as inflation and rising costs remain a concern, according to Constant Contact’s Q1 2026 Small Business Now report.
The survey of more than 1,500 small business owners across five countries found that 54% already use AI-powered marketing tools, with adoption moving beyond experimentation.
About 45% said they use AI to analyze trends and performance data, while 44% rely on it to help generate content. The report suggests AI is increasingly viewed as a way to scale output and improve efficiency without adding staff.
Despite economic pressure, 68% of respondents plan to increase marketing budgets this year, and 74% expect to spend more time on marketing. Inflation remains the top concern for 41% of owners, but many see AI as a way to offset higher costs by doing more with fewer resources.
Social media and email marketing remain the top channels for growth, at 68% and 41% respectively, reinforcing the role of AI in automating and optimizing digital outreach. Traditional advertising came in lower at 26%, as did in-person events (29%).