Two-thirds of small firms using AI now build their own tools, Pax8 finds

What happened

In every market surveyed, most do it without a formal, documented review, Pax8 found in a survey published on Monday. It found shadow AI in 35% of firms using AI, and nearly half of AI buyers got a bigger bill than expected.

The results form the Q3 2026 SMB AI Pulse Report . Small and mid-sized businesses have moved from buying AI tools to building their own.

It sells AI and cloud software to small businesses through IT service providers. Artificial Intelligence Two-thirds of small firms using AI now build their own tools, Pax8 finds Pax8 asked 1,150 leaders in the US, UK, Germany and Sweden.

October 13, 2026 - 9:51 am Small and mid-sized businesses have moved from buying AI tools to building their own. It surveyed 1,150 business leaders in the US, the UK, Germany and Sweden.

It is the third edition of the quarterly series, and the first to cover Europe. “SMBs are moving from using AI tools to building AI into the way their businesses operate,” Nick Heddy, Pax8’s president and chief commerce officer, said in a statement.

Key facts

• In every market surveyed, most do it without a formal, documented review, Pax8 — found: in a survey published on Monday