---
title: "20 workflow automation statistics for small businesses in 2027"
description: "Explore 20 workflow automation statistics for small businesses in 2027, covering market growth, AI adoption, productivity gains, and cost savings."
image: "https://hercules.app/blog/workflow-automation-statistics-small-businesses/opengraph-image"
---

# 20 workflow automation statistics for small businesses in 2027

Explore 20 workflow automation statistics for small businesses in 2027, covering market growth, AI adoption, productivity gains, and cost savings.

- **Author:** [Grant Gurvis](https://hercules.app/blog/authors/grant)
- **Tag:** Company
- **Published:** 2026-11-10
- **URL:** https://hercules.app/blog/workflow-automation-statistics-small-businesses

Workflow automation helps small businesses save time and reduce manual work. The global workflow automation market reached [$23.77 billion in 2025](https://www.mordorintelligence.com/industry-reports/workflow-automation-market) and is projected to grow through 2031. In a 2020 McKinsey survey, [sixty-five percent](https://www.mckinsey.com/capabilities/operations/our-insights/the-imperatives-for-automation-success) of respondents at companies with less than $1 billion in annual revenue said their organizations met their automation goals, compared with 55% at larger companies.

AI-powered no-code tools like Hercules let you build customer relationship management (CRM) systems, enterprise resource planning (ERP) systems, and other business apps by describing what you need instead of writing code. For suitable projects, this can reduce development costs and shorten launch times.

## **Key takeaways**

- **The market is growing:** The workflow automation market reached [$23.77 billion in 2025](https://www.mordorintelligence.com/industry-reports/workflow-automation-market) and is projected to reach $40.77 billion by 2031.
- **Smaller companies reported more success:** In 2020, [65% met automation goals](https://www.mckinsey.com/capabilities/operations/our-insights/the-imperatives-for-automation-success), compared with 55% of larger companies.
- **Employees expect time savings:** In a 2020 survey, employees estimated that automation could save [240 hours a year](https://workmarket.com/blog/what-does-automation-in-gig-economy-look-like), or six 40-hour workweeks.
- **AI use is widespread:** In a 2026 U.S. survey, [66% of small businesses](https://www.uschamber.com/technology/2026-empowering-small-business-report) reported using AI.
- **Custom apps can replace costly builds:** [MMA Plumbing](https://hercules.app/customers/mma-plumbing) built a 46-module system on Hercules after agencies quoted at least €250,000.
- **Combining tools can lower costs:** [Kingdom Construction](https://hercules.app/customers/kingdom-texas) reports saving $30,000 a year after replacing four software vendors with one Hercules app.

### **1. The workflow automation market reached $23.77 billion in 2025**

The global workflow automation market was worth [$23.77 billion in 2025](https://www.mordorintelligence.com/industry-reports/workflow-automation-market), according to Mordor Intelligence. It estimates the market at $26.01 billion in 2026 and projects $40.77 billion by 2031, with 9.41% average annual growth from 2026 through 2031. This growth reflects demand for tools that reduce manual work and connect business systems.

### **2. Cloud software made up 62.15% of workflow automation revenue in 2025**

Cloud-based software accounted for [62.15% of market revenue](https://www.mordorintelligence.com/industry-reports/workflow-automation-market) in 2025, Mordor Intelligence reports. It lets businesses use software hosted by a provider rather than maintain the underlying systems themselves. The figure measures revenue from cloud-based automation, not the share of businesses using it.

### **3. Small and medium-sized businesses could see 10.19% annual market growth**

Mordor Intelligence expects the workflow automation market serving small and medium-sized enterprises to grow [10.19% a year](https://www.mordorintelligence.com/industry-reports/workflow-automation-market) through 2031. That is faster than the overall market's projected 9.41% growth. The forecast points to rising demand for tools that manage operations, automate routine work, and connect business information.

### **4. Nearly 60% of surveyed U.S. firms automated employee tasks in 2024**

In a 2024 survey, [nearly 60% of firms](https://www.fuqua.duke.edu/duke-fuqua-insights/us-companies-ramp-automation-and-ai-inflation-persists) in the U.S. said they had automated tasks previously done by employees during the past year. The figure rose to 84% among large companies. Duke University conducted the survey with the Federal Reserve Banks of Richmond and Atlanta, gathering responses from about 450 financial executives.

### **5. 58% of automating firms wanted to improve product quality**

In the same 2024 survey, [58% of automating firms](https://www.fuqua.duke.edu/duke-fuqua-insights/us-companies-ramp-automation-and-ai-inflation-persists) said improving product quality was a reason for using automation. Other goals included increasing output (49%), reducing labor costs (47%), and replacing employee tasks with technology (33%). These were reasons for adopting automation, not measured results.

### **6. Two-thirds of surveyed organizations were testing automation in 2020**

In a 2020 McKinsey survey, [two-thirds of respondents](https://www.mckinsey.com/capabilities/operations/our-insights/the-imperatives-for-automation-success) said their organizations were at least testing business process automation in one or more functions, up from 57% in 2018. Most of the increase came from pilot projects. The share of organizations moving beyond testing had changed little.

### **7. 41% of large companies had adopted advanced automation, versus 26% of smaller firms**

McKinsey's 2020 survey found that [41% of large companies](https://www.mckinsey.com/capabilities/operations/our-insights/the-imperatives-for-automation-success) had rolled out automation across the organization or fully automated processes in at least one function, compared with 26% of smaller companies. McKinsey defined large companies as those with at least $1 billion in yearly revenue. Advanced automation was more common at larger firms at the time.

### **8. Smaller companies reported 65% automation success, versus 55% at larger firms**

In McKinsey's 2020 survey, [65% of respondents](https://www.mckinsey.com/capabilities/operations/our-insights/the-imperatives-for-automation-success) at companies with less than $1 billion in annual revenue said their organizations met their automation targets, compared with 55% at larger companies. Clear goals, cost awareness, and coordination across teams were important factors in successful projects.

### **9. 55% of successful smaller companies tracked automation performance**

In McKinsey's 2020 survey, [55% of successful firms](https://www.mckinsey.com/capabilities/operations/our-insights/the-imperatives-for-automation-success) among smaller companies had set key performance indicators (KPIs) for automation, compared with 37% of other smaller companies. KPIs are measures used to track results. The finding links performance tracking with success but does not show that tracking alone caused better outcomes.

For example, [Kingdom Construction](https://hercules.app/customers/kingdom-texas) reports saving $30,000 a year after replacing four software vendors with one Hercules-built application.

### **10. Employees estimated that automation could save 240 hours a year**

In a 2020 survey reported by WorkMarket, employees estimated automation could save [240 hours annually](https://workmarket.com/blog/what-does-automation-in-gig-economy-look-like), equal to six 40-hour workweeks. Business leaders estimated 360 hours. These were expectations, not measured annual savings.

Hercules customers report savings from specific workflows. [Sold Out Entertainment](https://hercules.app/customers/soldout-entertainment) reports saving 75 hours a month on tour logistics, while[ Helixon Law](https://hercules.app/customers/helixon-law) reduced proposal preparation from five hours to about 40 minutes.

### **11. Switching tasks can cost up to 40% of productive time**

Research discussed by the American Psychological Association suggests that switching between tasks can consume up to [40% of productive time](https://www.apa.org/topics/research/multitasking). Moving between emails, data entry, and other work creates interruptions. Automation can remove some repetitive steps, but this research does not measure the time saved through automation.

In one separate example, [Global Connectors](https://hercules.app/customers/global-connectors) reports saving 200 hours a month by reducing manual accounting work with a Hercules-built ERP.

### **12. 58% of U.S. small businesses reported using generative AI in 2025**

The U.S. Chamber of Commerce found that [58% of small businesses](https://www.uschamber.com/technology/artificial-intelligence/u-s-chambers-latest-empowering-small-business-report-shows-majority-of-businesses-in-all-50-states-are-embracing-ai) surveyed used generative AI in 2025, up from 40% in 2024 and 23% in 2023. Generative AI creates text, images, code, and other content from instructions. The figures measure adoption, not the financial return businesses receive.

### **13. 66% of U.S. small businesses reported using AI in 2026**

The U.S. Chamber of Commerce reported that [66% of small businesses](https://www.uschamber.com/technology/2026-empowering-small-business-report) surveyed used AI in 2026, eight percentage points more than in 2025. Its October 2026 report covered multiple types of AI, so this figure should not be treated as a generative-AI-only adoption rate.

### **14. 41% of U.S. small businesses used at least six technology platforms**

In 2026, [41% of businesses](https://www.uschamber.com/technology/2026-empowering-small-business-report) in the U.S. small-business survey used six or more technology platforms. That was nine percentage points higher than in 2025 and almost three times the share in 2022. Businesses often use separate tools for accounting, customers, inventory, communication, and operations. Linking their data can reduce manual work, though using multiple tools does not always mean they need to be combined.

### **15. 84% of small businesses planned to use more technology**

The U.S. Chamber's 2026 survey found that [84% of small businesses](https://www.uschamber.com/technology/2026-empowering-small-business-report) planned to increase their use of technology over the next two to three years. This included businesses with different levels of technology use. The number reflects their plans, not technology investments they had already made.

### **16. 95% of AI-using small businesses reported employee training efforts**

In 2026, [95% of AI-using firms](https://www.uschamber.com/technology/2026-empowering-small-business-report) in the U.S. small-business survey reported efforts to improve employees' skills, according to the U.S. Chamber. The report also found that 47% provided on-the-job training. These findings show that many businesses are helping employees learn to work with new technology.

### **17. 47% of surveyed small businesses said AI was creating jobs**

The U.S. Chamber's 2026 survey found that [47% of small businesses](https://www.uschamber.com/technology/2026-empowering-small-business-report) said AI was helping create jobs, while 6% said it was helping reduce staff. These are businesses' reported experiences, not a measure of AI's effect on employment nationwide. The results show that businesses are seeing different workforce outcomes.

### **18. AI could automate activities covering 60% to 70% of work hours**

McKinsey estimated that AI and other technologies available in 2023 could technically automate activities that account for [60%–70% of work hours](https://www.mckinsey.com/capabilities/tech-and-ai/our-insights/the-economic-potential-of-generative-ai-the-next-productivity-frontier). This is a measure of technical potential, not work already automated. McKinsey also estimated that generative AI could create $2.6 trillion to $4.4 trillion in annual economic value across 63 use cases it studied.

### **19. The enterprise agentic AI market could grow 47% a year through 2030**

MarketsandMarkets projects that the enterprise agentic AI market will grow from [$6.76 billion in 2025](https://www.marketsandmarkets.com/PressReleases/enterprise-agentic-ai.asp) to $46.04 billion by 2030, with 47% average annual growth. Agentic AI systems can take actions and carry out tasks with some independence rather than only respond to prompts. The forecast covers enterprise agentic AI, not small-business workflow automation alone.

### **20. Gartner expects 80% of new applications to be short-lived by 2029**

Gartner predicted in September 2026 that [80% of new applications](https://www.gartner.com/en/newsroom/press-releases/2026-09-15-gartner-unveils-top-strategic-predictions-for-2027-and-beyond) would be designed to last less than one year by 2029. The forecast reflects how AI may make it faster to build software for changing needs. It does not mean every business app should be temporary. Businesses still need to plan for security, maintenance, and data retention.

## **How Hercules helps small businesses automate workflows**

Hercules is an AI-powered no-code app builder that lets you create business software by describing what you need. It includes databases, backend functions, user login controls, and hosting, so you can build applications without setting up each part separately. Businesses use it to address common automation challenges:

- **Build custom tools without developers:** You can create CRMs, ERPs, and other apps built around your workflows. [MMA Plumbing](https://hercules.app/customers/mma-plumbing) built a 46-module operating system after receiving agency quotes of at least €250,000.
- **Launch sooner:** [Petony Transportes](https://hercules.app/customers/petony-transportes) launched an ERP in two months instead of the eight months an agency quoted. Its founder says the company avoided a $230,000 development quote.
- **Combine disconnected software:** [Kingdom Construction](https://hercules.app/customers/kingdom-texas) replaced four vendors with one Hercules-built app and reports saving $30,000 annually.
- **Reduce repetitive work:** [Imjomat](https://hercules.app/customers/imjomat) reports saving 2,000 hours each month by automating team coordination and other operations.
- **Update apps as needs change:** You can describe changes in plain language instead of requesting every update from a developer. You still need to review, test, and maintain your apps.

These customer-reported outcomes come from businesses in construction, logistics, and data services, with other examples in legal services, accounting, and entertainment. Your costs depend on what you build and use. When comparing options, include testing, maintenance, plan pricing, AI Credits for applicable agent use, and Cloud Credits for applicable cloud use. Under the [October 11, 2026 terms](https://hercules.app/legal/terms-of-service), commercial use, including internal business operations, requires a Business or Enterprise plan.

## Frequently asked questions

### What is workflow automation for small businesses?

Workflow automation uses software to handle repetitive tasks with less manual work. Small businesses can automate invoice processing, customer follow-ups, data entry, and reports. AI-powered no-code builders like Hercules also let you create custom apps by describing the processes you want to automate.

### How does AI help non-technical users automate workflows?

AI-powered app builders let you describe what you need instead of writing code. They can create screens, databases, and the functions that run behind an app. In 2026, [66% of small businesses](https://www.uschamber.com/technology/2026-empowering-small-business-report) surveyed in the U.S. reported using AI. You still need to check and test the applications before using them for business operations.

### Can workflow automation save small businesses money?

Yes, when the savings outweigh the cost of building and running the automation. [Kingdom Construction](https://hercules.app/customers/kingdom-texas) reports saving $30,000 a year after replacing four software vendors with one Hercules app. [Global Connectors](https://hercules.app/customers/global-connectors) reports saving 200 hours a month by automating accounting work. These are individual customer-reported results, not guaranteed savings.

### What applications can small businesses build to automate workflows?

Small businesses can build CRMs, ERPs, human resources portals, inventory systems, client portals, and other operational tools.[ MMA Plumbing](https://hercules.app/customers/mma-plumbing) built a 46-module operating system that manages multiple business functions.[ Global Connectors](https://hercules.app/customers/global-connectors) reports saving 200 hours a month with an accounting ERP that reduces repetitive data entry and connects financial workflows.

### Can small businesses automate workflows without a developer?

Yes. An AI-powered no-code app builder like Hercules lets you create workflows and business applications by describing what you need. You still need to define the process, review what the tool builds, test it, and update it when requirements change. Start with a repetitive task that has clear inputs and results, then check whether automation saves time.

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