AI's Impact on Small Business: Congress Takes Action

The House Small Business Committee is convening a hearing July 14 on how artificial intelligence is reshaping small business operations. "AI on Main Street" will look at companies with stakes in small business AI adoption, including platforms facilitating freelance work and small business software providers, alongside emerging AI firms concerned about regulatory overreach on startups.

Recent months have seen a surge in small business-focused AI legislation. In late June, members introduced bills to study AI's impact on workers and older Americans, to improve AI literacy in schools, and to strengthen transparency around AI-generated content. The House Science Committee advanced legislation on generative AI labeling and data center measures. Congress is beginning to grapple with how AI deployment affects different constituencies, and the Small Business Committee hearing represents the first formal examination of effects on small enterprises specifically.

Several organizations with direct stakes in small business AI adoption have ramped up lobbying. Upwork Global Inc., a freelance marketplace platform, filed four separate lobbying disclosures over the past year focused on AI workforce development and small business promotion. Intuit Inc., which serves millions of small business owners through accounting and tax software, has logged over $1 million in lobbying activity since early 2025, citing AI and innovation benefits to small businesses and consumers. Smaller AI firms including Doppel Inc. and Arqaios Inc. have also disclosed lobbying on federal AI standards and their impact on startups.

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