American Express released its latest Amex Trendex: Small Business Edition, which shows that small businesses are reassessing their business strategies in response to new customer behaviors and an evolving business environment.
Surveying over 1,000 small businesses in the U.S. from March 24 – 30, 2025, the Trendex report found that 92% of small businesses expect their customer base to change this year, with 75% believing that the change will be more prominent in 2025 than in previous years. Additionally, small businesses say that they’re prioritizing adjusting their strategies, introducing new products or services and leveraging AI this year to continue meeting their customers’ needs and drive engagement.
“Five years since the COVID-19 pandemic forced small businesses to pivot, they are embracing a change mindset and customer-first innovation to drive growth,” said Ro Gutierrez, senior vice president and head of Small Business Products at American Express, in a news release. “As these small businesses look to the future, they anticipate that the next five years will be defined by building a strong financial footing and modernizing their technology.”
Leaning on Technology
Small businesses see Artificial Intelligence (AI) as a driver of confidence, and many are seeing positive returns on their investments in AI through reduced errors (45%), operational efficiencies (42%), employee productivity (42%) and increased sales (41%). According to the report, respondents remain divided on AI, however, with just over half (56%) saying that their business currently uses AI.
And yet, almost nine-in-ten (87%) small businesses currently using AI admit that they are still learning how to use it effectively, and two-thirds (68%) say they thought AI would have made a bigger impact on their business than it actually has. Nearly half (46%) who currently use AI implemented it within the past twelve months, and over half (52%) of all businesses using AI believe their business started using AI prematurely, according to the report.
Still, many wish their companies were investing in AI, with 33% of businesses who do not use AI saying they wish leaders in their company were more interested in using it.
Lessons Learned and Looking Ahead
For small businesses, reflecting on 2020 shapes how they are navigating the current moment and preparing their businesses to thrive in the years to come.
Knowing what they do now, 87% say there are things they would have done differently to prepare their businesses, according to the report, such as building cash reserves (46%), developing contingency plans for unexpected events (31%) and prioritizing their social media following (31%).
When asked what themes will define the next five years for all small businesses, respondents cited rising labor costs (42%), building cash reserves to manage unexpected events (41%), navigating the economic environment (40%) and preparing their business their business for the Artificial Intelligence (AI) era (38%).
Small Businesses Desire to Retain Customers
Attracting and retaining customers will always be a key priority for small businesses. The Amex Trendex study found that 91% of small business owners maintaining customer engagement is the most important part of running a business. While respondents believe they understand their target customer, they’re making changes to their strategies to target more premium customers in their local markets.
Small businesses feel confident about the customer experience they offer, with over nine-in-ten (93%) believing that they understand their customer bases, and 90% expressing confidence in their company’s ability to stay ahead of changing customer preferences.
