New findings from the U.S. Census Bureau show AI adoption continuing to spread across American businesses, though usage remains heavily concentrated among larger firms and specific operational functions.

The Bureau’s latest Business Trends and Outlook Survey (BTOS) data — covering December 14, 2025 to May 3, 2026 — offers one of the clearest snapshots yet of how companies are actually deploying AI in day-to-day operations.

Take MDM’s AI Adoption Index and be among the first to get the results

Top-Level Findings

The Census Bureau’s public writeup highlighted several broad adoption trends:

• 18% of U.S. firms reported using AI in at least one business function during the survey period
• On an employment-weighted basis, adoption was significantly higher at 32%, indicating larger companies are adopting AI faster than smaller firms
• Businesses projected adoption would rise to 22% within six months
• AI adoption was highest among:
  • Large enterprises
  • Information services firms
  • Professional services firms
  • Finance and insurance companies
• Meanwhile, retail, manufacturing and wholesale trade (including distribution) reported AI usage lower than the national average
  • Editor’s Note: The Census Bureau classifies distributors under the NAICS federal classification of “Wholesale Trade,” but it’s important to know that the sector category also includes some wholesale business models (such as agents, brokers and traders) who are not distributors in the traditional sense. Still, the category encompasses wholesale distributors, and it is the closest application of data.
• The Bureau found that AI use remains concentrated in a relatively small number of operational areas rather than enterprise-wide transformation
• Researchers also noted that most businesses are using AI to support workers rather than replace them
• The report found limited evidence so far of broad AI-driven job reductions
• The Bureau additionally observed that companies with broader AI integration often reported stronger business performance and investment activity

The findings reinforce a broader trend MDM and NAW research has identified across distribution: companies are moving beyond experimentation, but most remain in relatively early deployment phases focused on practical business outcomes. Our April 2026 report, “In Search of Value: Where 400+ Distributors are Investing in AI Today,” identified the six highest-value use cases our previous 2025 research identified and explored what ROI distributors have actually seen so far.

All charts via U.S. Census Bureau. Click for larger versions.

What the Bureau’s Deeper Research Paper Revealed

Alongside the public-facing summary, the Census Bureau also published a more detailed working paper — “The Microstructure of AI Diffusion: Evidence from Firms, Business Functions, and Worker Tasks” — that provided a deeper look into how businesses are using AI operationally.

Among the additional findings:

• 57% of AI-using firms deploy the technology in three or fewer business functions, suggesting most adoption remains relatively narrow in scope.
• The most common business functions for AI deployment were:
  • Sales and marketing (52%)
  • Strategy and business development (45%)
  • IT operations (41%)
• At the employee level:
  • 23% of firms reported workers using AI for job-related tasks
  • On an employment-weighted basis, that rose to 41%
• The most common worker-level AI applications included:
  • Writing and editing
  • Document analysis
  • Information search
• Even at the task level, deployment depth remained limited:
  • 65% of firms using AI at the task level reported using it in three or fewer tasks
• On workforce impact:
  • 66% of AI-using firms said AI was strictly augmenting employee work
  • Only 2% reported AI-related employment reductions

The Census findings align closely with recent MDM/NAW research showing distributors are prioritizing practical, targeted AI applications such as demand forecasting, pricing optimization and customer service automation rather than broad enterprise-wide transformation initiatives. Our “In Pursuit of Value” study found most distributors remain in exploration or pilot stages across core AI opportunity areas, despite growing investment momentum.

Get Involved with MDM & NAW’s Ongoing AI Research

Given how fast the AI usage landscape is moving in distribution, MDM and NAW are constantly researching use cases and AI strategy across the industry spectrum. We currently have a survey out that will ultimately deliver an AI Adoption Index to show where distributors’ top investment areas are with AI — segmented by company size and market — and measures of how AI is impacting their operations. Take the survey here and be among the first to get its results.