Cook highlights small business AI use, Fed data importance

Federal Reserve Governor Lisa D. Cook welcomed attendees to the State of Small Business Symposium, underscoring the vital role small businesses play in job creation, economic opportunities, and community building.

She noted that understanding these firms is critical for comprehending the U.S. economy, as 99.9 percent of businesses have fewer than 500 employees.

Since 1995, these small businesses have accounted for 61 percent of net new job creation.

Cook stressed that monetary policymakers' actions deeply impact small firms, and achieving the dual mandate of maximum employment and stable prices creates conditions for their prosperity.

High-quality data is essential for policymakers and researchers, with the Federal Reserve's Small Business Credit Survey (SBCS) serving as a crucial source.

Cook, an economist with extensive research on small businesses, praised the ongoing effort behind the SBCS, which has expanded in size and scope over the last decade.

This year marks 10 years since the survey became a national, Systemwide collaboration.

The SBCS now captures near-real-time small business credit conditions, financing frictions, and emerging operational challenges.

A notable finding from the 2025 survey is the widespread use of artificial intelligence (AI) by small businesses: nearly half of small employer firms reported using AI, with 71 percent experiencing increased productivity.

Cook observed that this finding contradicts the conventional wisdom that large firms hold an advantage in deploying AI.