NEW YORK--For years, artificial intelligence has been viewed by many credit unions as the next frontier in digital banking. But for many small business members, the future has already arrived.
According to a new installment of the PYMNTS Intelligence Credit Union Tracker series, produced in collaboration with Velera, small and mid-sized businesses (SMBs) are increasingly looking to their financial institutions for AI-powered financial guidance—not futuristic automation, but practical tools that help manage expenses, monitor cash flow, build budgets and make smarter business decisions. The findings suggest many credit unions risk falling behind member expectations unless AI moves from strategic discussion to practical deployment.
The research found 75% of SMBs say they would use at least one AI feature offered by their financial institution within the next two years, compared with 59% of consumers. Demand climbs even higher among larger businesses, with 83% of companies generating more than $1 million in annual revenue expressing interest in AI-enabled financial services. Profitable businesses also show significantly greater interest than struggling firms, underscoring AI's potential as both a member-retention and business-development tool.
Guidance Over Automation
Perhaps the biggest takeaway is that business owners aren't asking credit unions to replace human decision-making with machines. Instead, they're looking for AI to simplify everyday financial management.
The study found 31% of SMBs are interested in AI-powered expense tracking, while roughly one in five want assistance with budgeting, cash-flow management, supplier discovery and comparing financial products. Rather than autonomous systems making financial decisions, businesses overwhelmingly favor AI that acts as an advisor—helping organize information and providing actionable insights.
The report notes this mirrors broader market trends. While Goldman Sachs research shows most small businesses already use AI in some capacity, relatively few have fully integrated the technology into their operations, suggesting adoption remains focused on solving specific business problems rather than wholesale automation.
Opportunity—And A Gap
The findings also reveal a growing disconnect between what business members want and where many credit unions are investing. Nearly half (49%) of credit unions surveyed view AI and conversational assistants as tools for attracting new members, while 60% identify personalized digital experiences as important growth drivers. Yet AI agents rank only ninth among 13 innovation priorities, suggesting implementation efforts continue to lag behind strategic recognition.
That gap may become increasingly problematic as SMBs grow accustomed to AI-enabled experiences elsewhere. The report warns digital experience is becoming a key factor businesses use when evaluating financial institutions, making AI less of a future differentiator and more of an emerging competitive necessity. Some credit unions are already losing business members because of digital friction that improved technology could help address, according to the research.
Industry progress is accelerating, however. Citing Cornerstone Advisors research, the report notes chatbot adoption among credit unions has climbed from just 3% in 2019 to 46% in 2026. PYMNTS Intelligence projects nearly half of top-tier credit unions will offer AI chat and financial-advice capabilities by 2029, with adoption spreading rapidly among mid-sized and smaller institutions as well.
Start Small, Build Trust
Rather than attempting sweeping AI transformations, the report argues credit unions should focus on practical, member-facing applications first. Conversational AI, budgeting assistance and expense-management tools represent the logical starting point because they address immediate business needs while allowing institutions to gain operational experience and member trust before introducing more advanced capabilities. Researchers describe this as a "trust ladder," with member enthusiasm strongest when AI provides advice and recommendations rather than making autonomous financial decisions.
The report also encourages credit unions to view AI as part of broader digital modernization rather than a standalone initiative. Cody Banks, Velera's senior vice president of product experience and enablement, advocates what he describes as a "chisel versus a sledgehammer" approach—making targeted technology upgrades instead of replacing entire systems. Velera points to its Atmos platform as an example of infrastructure designed to help credit unions integrate AI capabilities while leveraging existing data and systems.
Partnerships Will Matter
Because relatively few credit unions have the resources to build sophisticated AI capabilities on their own, partnerships are expected to play a central role in adoption.
The report says collaborations with CUSOs, fintechs and technology providers can significantly shorten implementation timelines while reducing deployment risk. As a CUSO, Velera said it provides shared technology platforms and embedded intelligence designed to help institutions accelerate AI adoption without rebuilding core infrastructure.
Elizabeth Wadsworth, vice president of decision intelligence and transformation at Velera, said the institutions that succeed won't necessarily be those that adopt AI the fastest, but those that use it most effectively to guide members through increasingly complex financial decisions.
The broader message from the report is clear: SMBs are no longer asking whether their credit union will offer AI-powered services—they're increasingly expecting them. For credit unions, the challenge isn't chasing the latest technology trend. It's delivering practical financial guidance that helps business members make better decisions today while laying the groundwork for more advanced AI capabilities tomorrow.