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- calendar_today November 13, 2026
The latest official data illuminate how U.S. businesses are increasingly digitizing their operations and adopting critical advanced technologies. Drawing on several recent surveys and analyses, we explore the breadth of digital adoption, the reach of cloud computing, sector-specific leadership in technology use, and overall trends in critical and emerging technologies (CETs).
Widespread Digitalization Across Businesses
Digitalization—the conversion of business functions into digital forms for computer processing—has become nearly universal among U.S. firms. According to the 2017 Annual Business Survey, more than 90% of businesses report digitalizing at least one function, with financial and personnel information being most commonly digitalized. Although some small and older microbusinesses lag, the overwhelming majority of firms are engaged in digital transformation, particularly in financial operations and human resources. This is the backbone for further technology adoption and a prerequisite for leveraging advanced tools like cloud computing and artificial intelligence (NCSES Working Paper).
Cloud Computing: The Leading Advanced Technology
Cloud computing emerges as the most adopted advanced technology among U.S. businesses. More than half (54%) of firms using digital solutions also report purchasing at least one cloud computing service. In contrast, adoption of other advanced technologies—such as robotics and artificial intelligence—remains below 10%. Notably, cloud computing is primarily being used for billing, security, and file-sharing functions, while almost 20% of firms employ cloud-based data analysis services. This reflects a trend where the cloud is largely facilitating IT outsourcing, but also underpins the diffusion of more sophisticated, data-intensive technological processes (NCSES Working Paper).
Critical and Emerging Technologies: Sectoral Insights
The 2022 Annual Business Survey, with data for 2021, points to a growing—yet still modest—adoption of critical and emerging technologies (CETs) among U.S. firms. Some 25% of businesses report using advanced computing, defined as including supercomputing, edge computing, cloud, and similar technologies. Other technologies such as communication and networking are used by 9% of businesses. Adoption rates for artificial intelligence, advanced sensing, and other CETs remain below 5%. These baseline numbers highlight both the leadership of advanced computing and the early stage of broader CET uptake (NCSES ABS 2022 Table).
Leading Sectors in Digital and Advanced Technology Use
The data show that adoption is not evenly distributed across sectors. Software publishers, data processing, hosting providers, and computer systems design companies report advanced computing usage rates above 50%. The information and communications technology sector (ICT) leads the way, with the communications equipment subsector reporting a 56% use rate for communication and networking technologies, and telecommunications at 42%. Manufacturing sectors such as computer and electronics, machinery, and fabricated metals also feature above-average rates for a range of CETs, notably advanced computing and specialized manufacturing technologies. Notably, nonmanufacturing industries like finance, scientific services, and health care show significant digitalization and intermediate levels of cloud adoption (NCSES ABS 2022 Table).
Productivity, Innovation, and the Role of Digital Infrastructure
The connection between digital adoption and innovation is reinforced by official data. While use of advanced technologies like artificial intelligence and robotics is still limited, the adoption of digital and cloud-based solutions is strongly associated with higher innovation rates. Cloud-based services for customer feedback and collaborative functions are the most closely connected to business innovation. Moreover, cloud computing is shown to reduce risk and barriers to experimentation, thus supporting the development of new products and services. Reliable broadband access emerges as a key enabling condition for this digital transition, with ongoing infrastructure investments expected to further level the playing field for businesses in less-served regions (NSF Indicators 2026 Introduction) (NCSES Working Paper).
Conclusion
Official data reveal that U.S. businesses have broadly embraced digital transformation, with cloud computing at the forefront of advanced technology adoption. Sectors in the information, software, and communications industries are leading this transformation, and manufacturing industries are advancing in specific technological domains. The results underscore the foundational role of digital infrastructure in shaping U.S. business competitiveness and highlight ongoing disparities in adoption rates for critical and emerging technologies. As investment in digital infrastructure and targeted technology diffusion continues, the breadth and depth of technology use across American industries are poised to grow further.
