How many Tennessee small businesses use AI?
In the U.S. Chamber of Commerce's state data (published August 2025), 46% of Tennessee small businesses said they currently use an AI platform and 37% use generative AI chatbots. 75% believe AI will help their business in the future.
The same survey found 71% of Tennessee small businesses worry that a patchwork of state-level tech rules will drive up their legal and compliance costs — a reminder that owners want AI help that's simple and low-risk.
Is AI costing Tennessee jobs?
Not for most employers so far. In the University of Tennessee's Boyd Center winter 2026 Tennessee Business Leaders Survey, nearly 63% of employers said they use AI in a way that didn't affect their employment levels, and about 10% said they have fewer employees because of AI.
For owner-operated businesses, the practical pattern is AI taking repetitive back-office work — email, scheduling, paperwork, follow-ups — so the same team can handle more jobs.
Where do contractors and the trades stand?
Interest is high, use is low. ServiceTitan's April 2026 survey of 1,000 residential contractors found 74% see AI as an efficiency engine, but only about 25% are using it — and more than half are unsure where to start.
Among home-service pros already using AI, Housecall Pro's 2026 survey found the most common uses are customer communication and follow-up (52%) and estimates, quoting and pricing (51%). Electrical (54%) and plumbing (53%) pros reported the highest active use.
What are customers comfortable with?
Customers draw a line at losing the human. In a 2026 ACHR News / BNP Media survey of 782 homeowners, 36% were comfortable with AI scheduling appointments or answering basic questions — and the top concern was losing human judgment and expertise (36%), ahead of accuracy (21%) and data privacy (14%).
The takeaway for a service business: use AI for the routine parts and hand customers to a person quickly for anything that needs judgment.
What this means for a Middle Tennessee business
If you haven't started with AI, you're in the majority of contractors — and early enough to get an edge. The owners who get value fastest start with one job that eats their week, not a big platform.
- Start with the task that costs you the most time: missed calls, quotes, invoices or paperwork.
- Keep a person in the loop for anything a customer sees.
- Use business AI services that don't train on your data, and keep ownership of what's built.
- Free help exists: the Tennessee Small Business Development Center offers no-cost consulting statewide.
Frequently asked questions
What percentage of Tennessee small businesses use AI?
46% of Tennessee small businesses use an AI platform and 37% use generative AI chatbots, according to the U.S. Chamber of Commerce's state data published in August 2025.
Are Tennessee employers replacing workers with AI?
Mostly not: in UT's Boyd Center winter 2026 survey, about 63% of Tennessee employers use AI without affecting headcount, while about 10% report fewer employees because of AI.
How many contractors use AI in 2026?
About 25% of residential contractors use AI even though 74% see it as an efficiency engine, per ServiceTitan's April 2026 survey of 1,000 contractors; Housecall Pro's 2026 survey put active use at 48% of home-service pros.
Sources
- U.S. Chamber of Commerce — Empowering Small Business, Tennessee (Aug 18, 2025)
- UT Boyd Center — Tennessee Business Leaders Survey, winter 2026 (Mar 17, 2026)
- ServiceTitan — 2026 Residential State of the Trades, survey of 1,000 contractors (Apr 7, 2026)
- Housecall Pro — AI in the Trades, survey of 248 home-service pros (Jun 30, 2026)
- ACHR News / BNP Media — homeowner survey on AI in HVAC service, 782 homeowners (2026)
- Tennessee Small Business Development Center