Federal Reserve Governor Lisa D. Cook took the stage at Stanford’s Institute for Economic Policy Research on May 27 to deliver a message that should matter to anyone watching the intersection of AI and the real economy: small businesses are adopting artificial intelligence at a meaningful clip, and so far, the labor market isn’t breaking a sweat over it.
The speech came at a symposium specifically designed to examine AI’s opportunities and risks for the broader economy and financial system. Cook’s focus on Main Street rather than Silicon Valley was deliberate, and the data she brought with her tells an interesting story about where AI adoption actually stands.
What the small business survey found
Cook drew heavily from the 2025 Small Business Credit Survey, conducted by the Federal Reserve itself. The headline number: over 70% of small business respondents said their labor costs had not substantially changed as a result of implementing AI tools.
Cook linked these findings to broader themes around small business vitality. Small businesses remain the backbone of US job creation, and their willingness to experiment with new technology is one reason US GDP growth has been robust, exceeding pre-pandemic productivity averages according to Cook’s remarks.
