AI considered key to future business growth. Many CT companies say they’re unsure how to use it

Hartford Courant – Thursday, September 4, 2025
By Kenneth R. Gosselin

A new survey of businesses in Connecticut found that not surprisingly workforce shortages, the state’s high cost of living and the rising cost of doing business were among the largest challenges to Connecticut employers.

But the annual survey by the Connecticut Business & Industry Association, the state’s largest business association, found another concern for those responding to the survey: artificial intelligence.

Artificial intelligence, which some experts say could be more influential in the future than the broad introduction of the internet in the 1990s, is gradually being adopted by businesses in the state. Of those responding to the survey, 36% reported integrating AI into their operations, but 64% said they had not done so.

“For those not yet using AI, uncertainty remains the primary barrier,” according to a 28-page report on the survey’s results. “Seventy-three percent said they are unsure how to incorporate it into their business operations. Additionally, 20% cited privacy concerns, while 7% referenced liability as a key reason for not adopting AI.”

For those adopting the technology, AI is being used for research, data analysis, project management, customer service, marketing, sales, human resources, accounting and communications.

“These findings highlight both the growing interest in AI-driven innovation and the need for more guidance and support around responsible implementation,” the report found.

A bill that would have required companies to publicly disclose their AI use was passed by the Connecticut Senate in this year’s session but was not taken up by the House after Gov. Ned Lamont threatened to veto the measure, CT Mirror reported. Lamont expressed concern that it would damage Connecticut’s technology sector.

Hartford is pushing for state funding to establish a center for applied AI innovation.

The use of AI by businesses in Connecticut is among the key findings of the 23rd annual CBIA survey conducted in partnership with CBIZ, Inc., an accounting and business advisory services firm.

CBIA president and chief executive Chris DiPentima said the survey shows Connecticut companies are focused on innovation and optimization — making the best use of their resources.

“Employers are increasingly dealing with the unnecessary uncertainty generated by both federal and state policy decisions, particularly tariffs and the pivot by Connecticut policymakers away from fiscal guardrails and no-tax policies that brought much-needed economic stability in recent years,” DiPentima said, in a statement.

CBIA emailed its 2025 survey to 2,800 top executives in the state from June 3 to July 17. Most of the firms surveyed are small businesses, with 68% employing less than 50 people.

The largest industry responding was manufacturing, at 36%, followed by professional services, at 15% and construction, at 11%.

The survey response rate was 13% with the margin of error of plus or minus 5%.

Other key findings include:

♦More than nine in 10 businesses say the cost of doing business is rising, driven by labor, healthcare, energy, taxes, and compliance costs.

♦76% of employers report difficulty hiring and retaining workers, with skills gaps and wage expectations as top barriers.

♦59% say access to affordable, quality child care is important for attracting and retaining employees.

♦Only 12% believe the state’s business climate is improving, while 47% say it’s static, and 40% believe it’s declining.

♦Two-thirds of businesses turned a profit in 2024, 18% broke even, and 15% reported losses — seven points higher than forecasted.

DiPentima said the survey has signs of optimism, but “concerns about the state’s competitiveness, workforce challenges and cost pressures continue to temper expectations.”

CBIZ managing director Michael Brooder said companies are expanding internship and apprenticeship programs “partnering with schools, and introducing emerging technologies to remain competitive.”.

Connecticut’s labor participation rate remains high —14th best in the country at 64.7% — but the labor shortage remains a significant economic growth challenge, DiPentima said

As of July 2025, the state had 77,000 unfilled job openings, about 22,900, or 8.6% more than before the pandemic hit in March 2020.

“For Connecticut to realize its economic potential, the state must address its high costs with policies that convert its strengths into sustained economic momentum,” DiPentima said.

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