As we look towards what’s in store for 2026, AI isn’t just a buzzword anymore — it’s becoming the backbone of how small businesses market, sell, and grow. As automation and analytics tools become more accessible, businesses are utilizing them to work smarter, not harder — and to remain competitive in rapidly evolving local markets.
According to CallRail’s recent survey of 300 small to medium-sized businesses, this year, success will depend less on experimentation and more on execution. In 2025, small businesses were exploring what AI could do. In 2026, they’re using it to compete — modernizing lead management, training, and marketing operations to close performance gaps and drive growth.
Here are the five trends that emerged from this year’s survey — revealing how small businesses are adapting, investing, and turning AI insights into everyday advantage.
Trend 1: AI moves from experimentation to everyday use
Last year, many small businesses were still experimenting with AI and testing different tools to understand what fit their workflows. This year, they’ve moved from experimentation to relying on AI every day to help them grow.
Two-thirds (67%) of small businesses now report using AI in their marketing efforts, up from just over half in 2025. The biggest shift is that AI has moved from creative support to operational muscle. The top use cases are now personalization (66%), lead scoring and qualification (63%), followed by content generation (54%) and ROI measurement (53%).
How small businesses are using AI in their marketing
For many business owners, that means less time spent chasing leads and more time building relationships. AI tools are helping small teams act like big ones by automating lead qualification, analyzing call sentiment, and conducting follow-up, work that once took hours each week. Now, businesses can turn every call into insight and suggest next steps that help close deals faster.
Together, these tools help small businesses generate 10% more leads through improved marketing, spend 50% less time reviewing and analyzing calls, and 60% less time qualifying leads, allowing owners to focus more on growth and customer relationships.
Trend 2: Competition and technology challenges are reshaping daily operations
For small-business owners, 2026 is all about efficiency and adaptability. Increased competition (61%) and the challenge of keeping up with technology (52%) top the list of business concerns. Rising operational costs add even more pressure to do more with less.
Biggest challenges organizations are facing
In response, many small businesses are rethinking how they operate — not by doing more, but by doing it better. Business leaders are tightening processes, automating routine tasks, and leveraging AI voice assistants to capture every opportunity before their competitors do.
To compete effectively, they’re focusing on the everyday processes that slow growth, the places where manual work or missed opportunities can add up fast. The top operational pain points currently are sales and service training (64%), lead follow-up and conversion (62%), and copy and content generation (50%). Each is an area where automation and AI can make a measurable impact.
Top operational/marketing challenges for small businesses
For instance, an AI voice assistant can now answer and qualify calls automatically, ensuring no lead slips through during off-hours or peak times. At the same time, AI-powered conversation intelligence tools help businesses turn call insights into action — enabling smarter follow-up, clear action plans, and targeted coaching that improve conversion rates and customer experience.
Trend 3: Small businesses are doubling down on PPC, SEO, and video
Small businesses are entering 2026 with confidence and a clear focus on growth. Nearly two-thirds (65%) expect their overall marketing budgets to increase.
When it comes to what’s delivering results today, paid search (55%), video (52%), and SEO (47%) remain the top channels driving new business. Paid social (42%) and referrals (38%) round out the top five, proving that while social content builds awareness, being present in search results when prospects have a need is still one of the best ways to drive conversions.
Top channels driving new business for small businesses
What’s different this year is confidence. More than 90% of small businesses claim they can now identify which channels are most effective for their business. With better attribution tools, business owners can connect every click, call, and form fill to revenue and make smarter reinvestment decisions. If you aren’t as confident as your peers, CallRail gives you the clarity you need to close those attribution gaps — connecting every call, click, and form fill back to the marketing that drove it.
Trend 4: Staying responsive matters more than ever in a crowded market
In a crowded marketplace, responsiveness can be the difference between winning and losing a customer. Today’s buyers have more options than ever, and it takes only minutes for them to find a dozen competitors online. So when potential customers first reach out, you need to answer the call, or they’re likely to move on to your competitors. While price (71%) and reviews (66%) remain the top decision drivers, responsiveness (64%) is nearly as important.
Factors that most influence whether a customer chooses your business over a competitor
However, many small businesses continue to struggle to keep up. Less than half (45%) respond to leads immediately after hours, and over one-third (38%) still manually check missed calls. That delay can mean losing a lead to a competitor who simply replies first.
AI tools are helping close the gap. Tools like CallRail’s Voice Assist can automatically answer and qualify calls around the clock, ensuring no inquiry goes unanswered. Meanwhile, AI-driven follow-up systems can personalize messages and instantly re-engage prospects, helping businesses stay responsive even when teams are offline.
This operational consistency is quickly becoming the new standard for delivering a great customer experience. A fast, professional response signals reliability, and that can make all the difference when price and service are tied.
Trend 5: Video and social evolve from test channels to essentials
Last year, small businesses said video was a top tactic they wanted to test. In 2026, they will make it a cornerstone of their marketing strategy. Among those increasing budgets, more than half plan to invest in video (54%) and influencer marketing (55%), indicating that visual and creator-driven content has transitioned from an experiment to everyday execution.
People are watching more video than ever and it’s reshaping how they shop and evaluate businesses. Today’s customers rely on quick, visual content to compare options, get a feel for a brand, and make decisions right from their phone. That’s why short, simple videos have become such a powerful way for small businesses to stand out.
At the same time, small businesses are continuing to experiment. The top tactics they haven’t yet implemented but plan to test in 2026 include organic social (41%), SMS/text (36%), and influencer marketing (32%), signaling that engagement-driven, mobile-friendly channels will remain a focus for learning and optimization this year. Even as influencer marketing becomes a core investment area, many small businesses are still in the learning phase, refining which creators, formats, and partnerships deliver the best ROI. That’s why it shows up as both a top budget priority and one of the most common channels still on the testing roadmap.
Top marketing tactics small businesses haven’t implemented, but plan to test in 2026
For many, this evolution is about visibility and trust. In industries where customers often make decisions based on price and reviews, video and social media help showcase expertise and build credibility. Whether it’s before-and-after footage, quick how-tos, or authentic client testimonials, these formats help small businesses stand out in crowded markets. As more customers turn to text for quick communication, tracking SMS interactions gives small businesses a clearer view of which messages drive leads and which channels perform best.
Outpace the competition in 2026 with AI-driven responsiveness
Kick off 2026 with an AI-powered lead engagement platform that gives you confidence not just in your marketing spend, but in your ability to respond faster and convert more leads into paying customers.
