South Carolina Businesses Face AI Adoption Challenges and Opportunities

Recent findings from the Census Bureau’s Business Trends and Outlook Survey (BTOS) reveal that artificial intelligence (AI) adoption among businesses in South Carolina remains limited, mirroring national trends. As of early 2026, only 17.2% of South Carolina businesses reported using AI in their operations, closely aligning with the national average of 17.9%. This data underscores a significant hesitance among companies to integrate AI technologies, which could have profound implications for the state’s labor market and competitive landscape.

The survey highlights notable disparities in AI usage across different sectors. Industries such as Information (37.6%), Professional, Scientific, and Technical Services (34.2%), and Educational Services (30.7%) lead in AI adoption, primarily due to their workforce's higher educational attainment. Conversely, sectors like Agriculture, Forestry, Fishing, and Hunting (5.1%) and Transportation and Warehousing (7.6%) show minimal engagement with AI technologies. This divergence suggests that sectors reliant on lower-skilled labor may lag in technological advancement, potentially widening the productivity gap with more tech-savvy industries.

In terms of application, South Carolina businesses predominantly utilize AI for sales and marketing, with 13.6% reporting its use in these areas. Additionally, 19.7% of businesses have adopted generative AI tools, such as ChatGPT and Copilot, primarily for writing and editing tasks. This trend indicates that while AI is not yet a central component of business operations, it is being leveraged to enhance specific functions, particularly those that involve content creation and communication.

Crucially, the survey indicates that AI is not currently perceived as a threat to employment. A significant 96.3% of businesses using AI reported no impact on their overall workforce size. Instead, AI seems to be augmenting existing software capabilities rather than replacing human jobs, with only 8.3% of businesses noting that AI has taken over tasks previously performed by employees. This suggests a cautious approach to AI, where companies view it more as a tool for efficiency rather than a substitute for human labor.

Looking ahead, there are signs of potential growth in AI adoption. Approximately 23.2% of surveyed businesses expressed plans to implement AI in the near future, although a substantial 57.1% indicated they have no intentions to use AI in the next six months. The primary barriers to adoption include perceptions that AI is not applicable to their business, a lack of understanding of its capabilities, and privacy concerns. These hurdles highlight the need for educational initiatives and support systems to facilitate a smoother transition into AI integration.

The current landscape suggests that while South Carolina businesses are cautious about AI, there is an opportunity for strategic investment in education and resources to enhance understanding and capabilities related to AI technologies. As companies begin to recognize the potential benefits of AI, those that proactively embrace these tools may gain a competitive edge. The slow but steady increase in planned AI adoption signals a gradual shift that could transform business operations in the coming years. For executives, staying attuned to these developments will be crucial, as the ability to leverage AI effectively could redefine industry standards and operational efficiencies across sectors.