Fragmented AI and privacy rules may slow small-business AI adoption, Chamber warns
Fragmented AI and privacy rules may slow small-business AI adoption, Chamber warns
Publish Date: 2026-07-06 10:21:00
Source Domain: techinformed.com
Small businesses are already using generative AI at scale, according to U.S. Chamber of Commerce survey data, while the Chamber told House lawmakers that fragmented AI and privacy rules could raise compliance and litigation costs for firms navigating state-by-state obligations.
The warning came in written testimony from Marty Durbin, the Chamber’s senior vice president for policy, before the House Energy and Commerce Committee’s commerce, manufacturing and trade subcommittee.
The June 30 hearing examined U.S. leadership in emerging technologies, including AI, robotics and quantum computing, amid growing tension between federal and state regulation of AI and data privacy.
Durbin said companies need clear rules for how AI-related data is governed. “To get AI policy right, companies must have certainty about how the data used for AI systems is governed,” he wrote.
The same testimony warned that “a patchwork of privacy and AI laws threatens to hold back U.S. technology leadership,” citing Chamber research that found small businesses fear higher litigation and compliance costs.
Survey shows rapid AI adoption among small businesses
The Chamber’s argument draws from its 2025 Empowering Small Business report, conducted with Teneo Research. The survey covered 3,870 U.S. small businesses with fewer than 250 employees, with data collected from June 6 to June 26, 2025.
The report found that 58% of small businesses self-identified as generative AI users, up from 40% in 2024 and 23% in 2023. Among small businesses using AI, 77% said limits on the technology would hurt growth, operations and the bottom line.
The same report found that 65% of small businesses were concerned a fragmented regulatory environment would drive up litigation and compliance costs.
The affected small-business base is large. The Small Business Administration’s 2025 Small Business Profile counted 36.2 million small businesses in the U.S.,…
