88% of Small Business Owners Act Against Inflation and Labor Pressures, Embracing AI as a Tool for Growth, Not Replacement According to ShareBuilder401k Study

Retirement planning remains top concern for small businesses

SEATTLE--(BUSINESS WIRE)--While inflation and labor shortages continue to weigh heavily on U.S. small businesses, owners are pivoting away from crisis mode and actively adopting new strategies, including implementing artificial intelligence (AI), to maintain stability and fuel growth. According to a new April 2026 survey of 500 U.S. small-business owners conducted by Wakefield Research for ShareBuilder 401k, an overwhelming 88% of owners have taken decisive action over the past year to counteract inflation and labor needs. This marks a significant jump from the 78% who took similar actions in 2024.

Half of all small businesses (50%) have increased prices to protect margins, while others have turned to lower-cost vendors (23%) or increased employee wages (22%). Inflation remains the most dominant pressure point, cited by 62% as a top concern for the coming year.

The Labor Crunch and the AI Solution

Staffing remains incredibly difficult among those surveyed, with 76% of owners reporting that hiring is tough right now, even when they offer competitive pay and benefits. Consequently, the cost of labor and the ability to hire and retain the right employees are top concerns for a third of businesses (33%).

Instead of replacing workers, small businesses are leaning on artificial intelligence to bridge the talent gap and increase capacity.

• Nearly three-quarters (72%) view AI as a tool that supports staff and improves efficiency, rather than a way to reduce headcount.
• Just 9% of owners see AI as a replacement for workers.
• In fact, 70% anticipate that integrating AI will enable them to hire additional employees in the future.
• The technology is already delivering real returns: 75% of owners report that AI saves them time weekly, and 63% rely on AI insights to guide their business decisions.

However, adopting this technology adds a new layer of complexity to operations, with 21% of owners citing AI integration as a top concern for the year ahead.

Retirement Planning Outpaces AI as Top Stressor

Even as owners navigate the complexities of machine learning and inflation, personal financial security weighs far more heavily on their minds. A striking 63% of small-business owners find planning for their own retirement more daunting than managing AI in their business.

While 81% of owners are currently saving for retirement, the highest rate since 2017, many remain anxious about the future. More than four in 10 (41%) lack confidence that they are saving enough. Furthermore, owners are delaying their exit strategies, pushing their average planned retirement age to 68, up from 65 in 2024 and 2022.

Despite these anxieties, businesses are increasingly stepping up to support their teams' futures. Nearly three in 10 (29%) now offer a 401(k) plan, up from 24% in 2024. The decision is largely values-driven, with 76% stating that it is their responsibility as business owners to provide this benefit.

Cautious Optimism for the Year Ahead

The small-business sector remains resilient despite ongoing hurdles. While 63% are still concerned about the impact of market volatility, the intensity of that fear has plummeted, with only 19% "very” or “extremely concerned," down sharply from 41% in 2020.

Overall, 68% report increased confidence in their business outlook compared to last year, driving planned, growth-facing investments into marketing and sales (58%) and AI solutions (40%).

The ShareBuilder 401k Survey was conducted by Wakefield Research among 500 U.S. small-business owners at companies of 1-50 employees. The survey was administered via email invitation and online between April 9th and April 16th, 2026.