63% of non-adopters say AI simply doesn't apply to their business -- cost ranks last among major barriers
AI adoption is primarily a relevance issue, not a cost issue. The barriers cited by non-adopters make that clear:
- The majority believed AI didn't apply to their business. Between 42% and 63% of non-adopters cited this reason, with the exact percentage depending on business size.
- About 1 in 5 mentioned lack of knowledge or security concerns. Lack of knowledge about AI capabilities was a barrier mentioned by approximately 21% of non-adopters, and approximately 20% had privacy or security concerns.
- Cost wasn't a major obstacle for most business owners. Only about 7% of non-adopters considered cost one of their AI adoption challenges.
Despite these obstacles, AI usage is on the rise. Nationwide, 22.7% of businesses expect to use AI within the next six months.
The AI industry itself is also growing rapidly. Along with the money pouring into AI stocks, private AI investments in the U.S. hit $109 billion in 2024, according to Stanford Human-Centered Artificial Intelligence's 2025 AI Index Report. Although cost isn't a big barrier to AI use, it's also dropping thanks to AI infrastructure investments. Model costs fell from $20 to $0.07 per million tokens between 2022 and 2024.
However, for widespread adoption, AI will need to gain ground in sectors with low adoption rates. That will require showing companies in these sectors how AI applies to their businesses.