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Knowing how innovation works in the sector can be the key to promising solutions

Key Takeaways

• R&D is essential to the success of companies in the IT industry, as it enables the creation of new products and services, as well as improving existing ones, providing a competitive advantage.
• R&D teams are comprised of professionals from various disciplines, such as software engineers, data scientists, and UX designers, who work together to meet customer needs and align with business objectives.
• Key activities include researching emerging technologies, developing and testing new products, improving existing products, and conducting market research to identify trends and customer needs.
• There are several R&D solutions, such as artificial intelligence, big data, quantum computing, IoT, and blockchain, each addressing specific challenges and contributing to innovation in the industry.
• Close communication between R&D teams and departments is essential to ensure that research efforts are aligned with market expectations and consumer needs.

In a rapidly developing world, innovation is becoming the key to the success of any company. This is where R&D (Research and Development) comes in, which opens doors to new opportunities and provides a competitive edge in an ever-changing marketplace. It delves into the exploration and creation of cutting-edge solutions in the information technology sector, focusing on groundbreaking areas such as artificial intelligence, machine learning, and cybersecurity. These efforts are designed not only to tackle emerging challenges but also to enhance operational efficiency and drive sustainable success.

What’s the role of R&D in IT Development?

R&D plays a key role in the Information Technology industry, contributing to the advancement of technology and enabling companies to develop new products and services, as well as improving existing products, processes, and technologies. In the IT industry, companies that continually invest in research and development have a greater chance of becoming market leaders and creating innovative products that change the world.

R&D departments within IT development companies are typically comprised of a diverse, interdisciplinary team that includes software engineers, data scientists, user experience (UX) designers, product managers, and specialists in emerging technologies such as artificial intelligence and machine learning.

In addition, R&D teams maintain close communication with other key departments such as marketing, sales, and customer service, whose collaboration ensures that their research and development efforts not only align with overall business goals but also accurately reflect customer needs and preferences.

Some common actions of an IT development R&D department are:

• Research and analyze emerging technologies: Research and analyze emerging technologies and trends in your industry, which helps identify opportunities for innovation and determine areas where the company can improve its products and services.
• Develop and test new products and services: Develop and test new products and services, which involves working closely with other departments to understand customer needs and meet them.
• Improve existing products and services: Improve existing products and services, identify areas for improvement, and implement changes to improve the product or service.
• Conduct market research: Conduct market research to identify customer needs and trends.

What types of R&D solutions are there?

R&D solutions encompass a wide range of strategies and methodologies, each tailored to address particular challenges or requirements, such as:

• AI and machine learning solutions
  AI and machine learning solutions use algorithms to automate tasks and extract insights from data and are applied in a variety of fields, such as finance, healthcare, manufacturing, and marketing.
• Big data solutions
  Big data solutions help collect, store, process, and analyze large volumes of data, which can be used to improve business efficiency, make more informed decisions, and develop new products and services.
• Quantum computing
  Quantum computing is based on the principles of quantum mechanics and can perform tasks significantly faster than traditional computing, opening the possibility of advances in areas such as drug discovery, materials science, and financial modeling. The work of R&D teams in this area may involve developing quantum algorithms and creating software to apply quantum computing to real-world problems.
• Cloud computing solutions
  Cloud computing solutions provide access to computing resources over the Internet, and can be used to reduce costs, increase scalability, and improve flexibility.
• Internet of Things solutions
  IoT solutions connect physical devices to the Internet, allowing data to be collected and managed remotely, and can optimize processes, improving productivity, and creating new business models.
• Blockchain solutions
  Research and development in the field of blockchain may involve creating more efficient algorithms, protocols, and methods for building blockchain networks. In addition, experts may explore the possibilities of using this technology to solve problems in various fields, such as finance, logistics, security, and others.
• Robotics solutions
  Involves developing software and tools for creating various robotic systems, including autonomous drones, driverless cars, and service and industrial robots. The goal of research and development in this area is to make robotics more accessible, easy to manage, and cost-effective.
• Development of new interfaces
  Designing new interfaces opens new ways for people to interact with computers and other devices. This can include creating virtual and augmented reality applications, wearables, and voice interfaces.
• RPA/AI solutions
  R&D engineers actively use advanced technologies of artificial intelligence, machine learning, and big data to implement solutions in the field of robotic process automation (RPA) and intelligent automation (AI).

Therefore, R&D is an essential component for success in the IT industry. By investing in innovation, companies not only improve their products and services, but also position themselves as leaders in a competitive market. With a diverse team and a collaborative approach, R&D initiatives can lead to industry-changing solutions that meet customers’ ever-changing needs.

FI Group can help you!

If your company engages in R&D activities, you can count on us: we specialize in helping companies recognize innovation and secure funding for their Research and Development (R&D) activities through the comprehensive management of R&D Tax Credits. With over 1,400 qualified employees, including specialists from different fields, we are dedicated to supporting companies of all sizes and sectors. With our expertise, FI Group specialists can help your company identify the qualifying activities conducted and access the available benefits, optimizing your research and giving it even more space and investment.

The concept, which is gaining visibility in the technological and business world, focuses on automating countless processes for better use.

Key Takeaways

• Hyperautomation is a strategic approach that aims to automate as many organizational processes as possible using advanced technologies.
• By automating manual tasks, organizations can increase efficiency, reduce errors, and improve operational agility, allowing employees to focus on more strategic activities.
• Hyperautomation is not limited to isolated processes but seeks to implement end-to-end automation, creating a continuous workflow that optimizes performance and resource allocation.
• The main components of hyperautomation include automation tools and technologies, artificial intelligence, RPA, machine learning, natural language processing, and computer vision.
• The adoption of hyperautomation promotes a culture of innovation in companies, allowing them to quickly adapt to market changes and customer needs.

In recent years, numerous innovative technologies and methodologies have emerged, all aimed at improving and streamlining business processes. Among these advancements, hyperautomation stands out as a transformative force that is rapidly gaining traction across multiple industries to automate complex business workflows and improve operational efficiency. This multifaceted approach not only increases productivity but also fosters greater innovation by enabling companies to reallocate human resources from repetitive tasks to more strategic initiatives.

What is hyperautomation?

Hyperautomation is a strategic approach that aims to automate as many organizational processes as possible, focusing on streamlining and optimizing business operations efficiently. By significantly reducing the need for human intervention, hyperautomation leverages a variety of advanced technologies, including machine learning, artificial intelligence (AI), and robotic process automation (RPA).

This methodology can be defined as a comprehensive mix of tools, approaches, and techniques designed to identify manual tasks that are ripe for automation. By automating these tasks, organizations can increase efficiency, reduce errors, and improve operational agility.

Hyperautomation does not focus solely on individual processes, but also emphasizes the interconnectedness of these processes, striving to implement end-to-end automation across the organization. This allows companies to create a seamless workflow, leading to optimized performance, increased speed, and better allocation of resources, contributing to a more agile and adaptive operational framework.

We can identify the main components of hyperautomation as follows:

• Automation Tools and Technologies: A range of tools and technologies facilitate the process. These include low-code/no-code platforms, business process management systems, and monitoring solutions.
• Artificial Intelligence (AI): AI enables machines to learn, reason, and solve problems autonomously. It is a crucial component of hyperautomation, as it enhances decision-making and augments human capabilities.
• Robotic Process Automation (RPA): employs software bots to automate repetitive manual tasks, improving efficiency and accuracy. This allows employees to concentrate on higher-value, strategic work, thereby increasing operational efficiency.
• Machine Learning: A subset of AI, machine learning allows computers to learn and improve automatically through experience. It is vital for process automation, especially in pattern recognition and making predictions based on data.
• Natural Language Processing: NLP is a branch of AI that focuses on how humans interact with computers using natural language. It plays a crucial role in applications such as chatbots, sentiment analysis, and customer service automation.
• Computer Vision: This field involves the acquisition, analysis, and understanding of visual information. It can be used for tasks like image recognition, video analysis, and robotics.

The integration of advanced technologies into the hyperautomation process is gaining significant importance in today’s business environment: as organizations embrace this approach, they are discovering additional ways to optimize resource utilization — minimizing waste and improving efficiency — while enhancing their decision-making capabilities through real-time data analytics and predictive insights.

This shift not only streamlines operations but also fosters a culture of innovation, enabling companies to react quickly to market changes and customer needs. As a result, the business operations landscape is rapidly evolving, transforming not only current practices but also establishing dynamic frameworks for future work models that emphasize agility, collaboration, and technology-driven solutions.

FI Group can help you!

If your company engages in R&D activities, you can count on us: we specialize in helping companies recognize innovation and secure funding for their Research and Development (R&D) activities through the comprehensive management of R&D Tax Credits. With over 1,400 qualified employees, including specialists from different fields, we are dedicated to supporting companies of all sizes and sectors. With our expertise, FI Group specialists can help your company identify the qualifying activities conducted and access the available benefits, optimizing your research and giving it even more space and investment.

Brief Summary 

Following the changes implemented by the One Big and Beautiful Act (OBBBA), the IRS published Revenue Procedure 2025-28 to assist and guide taxpayers on the procedures to be adopted in the treatment of R&D expenses in accordance with Sections 174 and 174A. 

Key Points 

• SMALL BUSINESS (retroactivity from the tax years beginning after December 31, 2021): 

1. Fiscal years before 2024: It is necessary to submit an amended corporate income tax return, attaching a statement informing of the retroactive option for that year, or Form 3115 for that year. 
2. Fiscal year 2024: There are two scenarios for this year, namely:
   -Companies that have already submitted the Income Tax Return before the publication of the Regulation: follow the same format as in previous years (see details above).
   -Companies that have not yet submitted the Income Tax Return: It can be requested directly on the original form, attaching the statement or Form 3115, i.e., it is not necessary to send the form with the previous year’s methodology and then request an amendment.
   
3. OTHER BUSINESS (“accelerate” amortization): 

• Follows the same format as small businesses, and it is possible to submit a statement informing them of the change, or Form 3115, but the requirements for this situation have some particularities in relation to those for small businesses, such as that it is valid for requests in fiscal years beginning after December 31, 2024. 

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On August 28, 2025, the Internal Revenue Service (IRS) released Revenue Procedure 2025-28, aligning tax regulations with the One Big Beautiful Bill Act (OBBBA). This update significantly alters how companies manage their research and experimental (R&E) expenditures by allowing immediate deductions for certain R&E costs, improving cash flow, and incentivizing innovation.  

Additionally, the OBBBA clarifies which activities qualify as domestic R&E expenditures, thereby promoting consistency in compliance. These changes are expected to encourage increased R&D investment among corporations, prompting them to reassess financial strategies considering the new opportunities presented by this legislative shift. For this reason, we present the main aspects, information, and points of attention involved in this publication, and their respective impacts on the tax planning of companies that invest in R&D. 

Who Should Pay Attention? 

This procedure is especially relevant for: 

• Companies with R&D expenses between 2021 and 2024 
• Businesses with R&D expenses in fiscal years beginning after December 31, 2024 

Whether you are a startup or an established enterprise, these changes could impact your tax strategy and potentially unlock substantial savings. 

Domestic R&D: Immediate Deduction Under §174A 

Starting in tax year beginning after December 31, 2024, companies can: 

• Immediately deduct domestic R&D expenses under §174A(a), or 
• Elect to amortize them over at least 60 months under §174A(c) 

Foreign R&D: No Change 

Foreign R&D expenditure continues to be amortized over 15 years, consistent with prior rules. 

Changing Accounting Methods: Simplified and Flexible 

Taxpayers can change their accounting method using automatic consent procedures under Rev. Proc. 2015-13, as modified by Rev. Proc. 2025-28 and 2025-23 thus simplifying the processes linked to this. 

Retroactive Application for Small Businesses 

Eligible small businesses may retroactively apply the new rules to prior tax years (2022–2024), amending returns and adjusting accounting methods without filing Form 3115 (see details below). 

Recovery of Unamortized Amount Method 

If a taxpayer opts to recover unamortized R&D amounts in the same year as a change to the deduction or amortization method under §174A(a) or (c), the changes may be made: 

• On the same statement, or 
• On separate statements 

This statement must include: 

• A declaration of whether the taxpayer will:
  -Amortize the full remaining amount in the first taxable year after Dec. 31, 2024, or
  -Amortize it ratably over two years 
• A declaration that the change is made on a cut-off basis 

It is important to remember that the statement, instead of Form 3115, is treated as a valid Form 3115 for automatic change procedures, in taxpayers eligible under the Procedure. 

Deadline for requesting retroactivity or recovery of the unamortized amount 

In general terms, the legislation stipulates that this choice must be made within a maximum of one year after the date of enactment of the OBBBA, which would be July 4, 2026 (but as this date falls on a Saturday, the choice must be made by Monday, July 6, 2026). However, it is necessary to pay attention to the deadline for filing a credit or refund request for each fiscal year, as the deadlines may change at this time. 

Deemed Compliance for Early Filers 

Taxpayers who filed a federal income tax return on or before September 15, 2025, for a taxable year beginning after Dec. 31, 2024, are deemed compliant with the new accounting method if they: 

• Properly deducted R&D expenses under §174A(a), or 
• Reported and amortized them under §174A(c) using Form 4562 

The same applies to those who adopted the recovery of unamortized amount method, provided they followed one of the two amortization options. 

Extension for Amending Returns 

To facilitate these changes, the IRS grants a six-month extension for filing superseding 2024 tax returns, applicable to: 

• Partnerships, S corps, C corps, individuals, trusts, estates, and exempt organizations 
• Taxpayers who filed timely returns before Sept. 15, 2025, without requesting an extension 

These superseding returns must: 

• Be filed in the same manner as the original 
• Include “REVENUE PROCEDURE 2025-28” at the top 
• Be used solely to:
  -Make the small business OBBBA election
  -Make or revoke a late §280C(c)(2) election
  -Change accounting methods under Section 7.02(3)(c) 

Legal Framework Updates 

Revenue Procedure 2025-28 modifies directly or indirectly: 

• Rev. Proc. 2025-23 (Automatic Changes) 
• Rev. Proc. 2025-24 (I.R.B. 1476) 
• Rev. Proc. 2015-13 (Accounting Method Changes) 

No revocations were issued, but several new subsections were added to clarify procedures for both domestic and foreign R&D expenditures. 

SPECIAL RULES FOR SMALL BUSINESS AND THE RETROACTIVITY PROCESS
Section 3 of Rev. Proc. 2025-28 

Small businesses may make the OBBBA election under this section if they have not already changed their accounting method under Section 7.02(3)(c) of Rev. Proc. 2025-23. 

To do so, they must: 

• Attach a statement titled “FILED PURSUANT TO SECTION 3.03 OF REV. PROC. 2025-28” to their original or amended return 
• Include:
  -Taxpayer name and ID
  -Declaration of non-tax shelter status
  -Election under §1.448-2(b)(2)(iii)(B), if applicable
  -Confirmation of meeting the §448(c) gross receipts test
  -Statement of whether the taxpayer is deducting or amortizing R&D expenses
  -Amortization period (if applicable)
  -Declaration to file amended returns for prior years, if needed 

Deadline: The election must be filed by July 6, 2026, or the applicable refund claim deadline under §6511. 

Section 7.02(3)(c) of Rev. Proc. 2025-23 

Alternatively, small businesses may use this section if they have not made the election under Section 3 of Rev. Proc. 2025-28. 

Key conditions: 

• Applies only to tax years beginning before Jan. 1, 2025 
• Original return must be filed after August 28, 2025 
• Not valid for changes in the first tax year beginning after Dec. 31, 2024, if the taxpayer already made a retroactive change or election 

Process: 

• File Form 3115 or 
• Attach a statement including: 
• Taxpayer name and ID 
• Automatic change number: 273 
• Declaration of non-tax shelter status 
• Election under §1.448-2(b)(2)(iii)(B), if applicable 
• Confirmation of meeting the §448(c) gross receipts test 

What’s Next? 

This Revenue Procedure represents a major step forward and provides legal certainty to taxpayers affected by Sections 174 and 174A, as well as enabling a significant transformation in the tax treatment of R&D expenses.  

With this transformation, companies that are actively investing in innovation now have an ideal opportunity to reassess their strategic approach to R&D investments, while this change allows for a more favorable tax environment, supporting continued investment in technology and creativity. 

Finally, it can be expected that the IRS will propose (with no date set at this time) changes and adjustments to the forms in order to allow companies to correctly fill out and submit R&D information. 

Key Takeaways 

• Synergy is described as a collaborative process where resources and efforts are combined to achieve common goals. 
• FI Group has developed a comprehensive methodology that combines strategic consulting with dynamic operational management, offering tailored solutions. 
• The company offers comprehensive support during finance-related tax audits, allowing organizations to focus on turning innovative ideas into reality. 
• By collaborating with FI Group, companies can gain a substantial competitive advantage, with a particular focus on R&D solutions 
• FI Group is ISO 27001 certified, ensuring the security of client information, as well as being compliant with the EU General Data Protection Regulation 

First, what’s synergy about?  

Synergy is the collaborative process in which resources and efforts are pooled across individuals, departments, and/or organizations to achieve common goals. This involves bringing together multiple technologies, operational efficiencies, and areas of expertise to leverage their collective strengths.  

By working together, these entities can improve decision-making processes and develop innovative solutions to the challenges they face: the result is substantial value creation that benefits all parties involved, fostering a more effective and productive environment.  

Through this, organizations can leverage their combined capabilities to drive growth and achieve results that would be difficult to achieve individually. 

FI Group’s Strategic Synergy 

At FI Group, we have meticulously crafted a comprehensive methodology that combines strategic consulting with dynamic operational project management. Our unique approach is purpose-built to significantly increase your potential for success amidst the challenges of today’s competitive business environment. We recognize that every organization has distinct needs, which is why we offer customized solutions specifically designed to align with your individual goals and the diverse requirements of various funding programs and tax incentives (including R&D Tax Credits). 

Exploring our range of services can serve as a reliable and effective foundation for your innovation projects. We are committed to not only facilitating progress but also ensuring that you achieve the desired results. By partnering with us, your company can enjoy a substantial competitive advantage, empowering your business to thrive in the ever-evolving marketplace. 

Our methodology gives you the freedom to innovate, allowing you to elevate your company’s performance and expand your creative capabilities. Throughout the entire lifecycle of your projects, we will be by your side, emphasizing security, transparency, and reliability in every interaction. 

In addition, we are aware of the intricate challenges that can arise during tax audits related to financing or tax incentives. Our expertise extends to providing comprehensive support during these audits, allowing you to focus entirely on your core mission: transforming your innovative ideas into tangible reality. With FI Group, you can navigate the complexities of tax incentives with confidence, ensuring that your projects not only move forward but also achieve lasting success. 

Why Choose Us? 

FI Group is a global company present in 13 countries across 4 continents, with a network of 34 offices. Our core values are integrity, professionalism, and empathy toward all our clients and partners. We are dedicated to excellence in providing customized R&D solutions. Here are some reasons why you might want to learn more about us and consider working with us:  

• Expertise in R&D Tax Credits: We provide exceptional expertise in R&D tax credits, supported by a highly qualified team with a proven track record of success. 
• Time-Saving Solutions: Partnering with us will save you time by streamlining the process of identifying and maximizing R&D tax credit opportunities for your clients. 
• Audit Support: Our team offers comprehensive audit support, providing peace of mind and expert guidance throughout the audit process. 
• Data Security: We proudly hold ISO 27001 certification, ensuring the security of our clients’ information. Additionally, we comply with the EU General Data Protection Regulation (GDPR) 2016/679. 

We are committed to delivering the best results for your clients by maximizing cost-effective R&D solutions across all industries.

Michigan’s new R&D credit

Michigan’s research and development (R&D) tax credit historically has closely followed the federal R&D tax credit. If a company qualified for the federal credit, then it would qualify for the Michigan credit. However, the R&D activities and expenditures must have occurred within the state of Michigan.

Effective for tax years beginning on or after January 1, 2025, an authorized business may claim a credit with a rate based on the number of employees:

• Business with 250 or more employees: Amount equal to the sum of 3% of the QREs incurred during the year up to the base amount plus 10% of the QREs incurred during the year in excess of the base amount. The credit amount must not exceed $2,000,000.00 per tax year per employer.
• Business with less than 250 employees: Amount equal to the sum of 3% of the QREs incurred during the calendar year up to the base amount plus 15% of the QREs incurred during the calendar year in excess of the base amount. The credit amount must not exceed $250,000.00 per tax year per employer.
• Additional credit: Business may claim an additional credit equal to 5% of the QREs that were incurred in collaboration with a research university in this state pursuant to a written agreement between the employer and the research university. The additional credit allowed must not exceed $200,000.00 per tax year.

The base amount follows the federal definitions, which is the average annual amount of qualifying research and development expenses incurred during the 3 calendar years immediately preceding the calendar year ending with or within the tax year for which a credit is being claimed under this section.

Special conditions:

• Company with no prior qualifying R&D expenses: Base amount is equal to zero.
• Company with prior qualifying R&D expenses in only 1 or 2 of the immediately 3 calendar years: The average annual amount must be based on the number of calendar years during which qualifying research and development expenses were incurred

Refunds are available if the credit exceeds the taxpayer’s liability for the year, and the total aggregate credit for all state claimants is capped at $100 million annually — $25 million for small businesses and $75 million for large businesses. The credit allowed for each claimant will be prorated if the aggregate amount of all tentative claims submitted for the year exceeds the annual cap.

Michigan previous R&D credit

For each tax year after 2009 and before January 1, 2025, the previous credit equals to 1.9% of Michigan’s QREs and is limited to 65% of a taxpayer’s tax liability.

Is a non-refundable credit aimed at C-Corporations and can be carried forward for up to 10 years or an unlimited carryforward with certificated credit.

Beginning January 1, 2012, only those taxpayers with a certificated credit, which is awarded but not yet fully claimed or utilized, may elect to be MBT taxpayers. If a taxpayer files an MBT return and claims a certificated credit, the taxpayer makes the election to file and pay under the MBT until the certificated credit and any carryforward of that credit are exhausted.

Comparison between R&D credits

Below we present a comparative table between Michigan’s R&D Tax Credits, reinforcing the differences in definitions, rates, concepts and other details involving this topic:

Overview	Michigan new credit	Michigan previous credit
General rule	Authorized business means a taxpayer that has incurred during the calendar year ending with or within the tax year for which a credit is being claimed under this section qualifying research and development expenses in excess of the base amount.	No mention
Eligible Entities	Corporations and flow-through entity	C-Corporations
Credit calculation	≥ 250 employees: Sum of 3% of the QREs up to the base amount + 10% of the QREs in excess of the base amount.   < 250 employees: The sum of 3% of the QREs up to the base amount + 15% of the QREs in excess of the base amount.	1.9% of Michigan QREs
Refundability	Only the portion of the credit that exceeds the tax liability for the taxpayer	Nonrefundable
Specified research or experimental expenditures	No changes compared to previous credit	“Research and development expenses” means qualified research expenses as that term is defined in section 41(b) of the internal revenue code for research conducted in this state
Carryforward	Not mentioned	10 years or unlimited carryforward with certificated credit
Transferability	Nontransferable	Nontransferable
Base amount	Base amount means the average annual amount of qualifying research and development expenses incurred during the 3 calendar years immediately preceding the calendar year ending with or within the tax year for which a credit is being claimed	No base amount
Special rule (base amount)	An authorized business with no prior qualifying research and development expenses has a base amount of zero.   If qualifying research and development expenses were incurred in only 1 or 2 of the immediately preceding 3 calendar years, the average annual amount must be based on the number of calendar years during which qualifying research and development expenses were incurred.	None
Annual cap (per employer)	250 or more employees: $2,000,000 per employer   Less than 250 employees: $250,000 per employer	Limited to 65% of a taxpayer’s tax liability
Annual cap (global)	$100 million annually, for the whole state, if it exceeds the cap, credit claims will be prorated	No
University collaboration	Additional credit equal to 5% of the QRES incurred in collaboration with a research university in this state, up to $200,000 yearly	None

 

Final Considerations

It is essential to note that the new credit in Michigan is effective for tax years beginning on or after January 1, 2025. Consequently, the Department of Treasury is developing forms, instructions, guidance, and procedures to administer this new credit. Therefore, this study is based on information covered through official channels to date, and we emphasize that new publications may be released after this study is completed.

1) Annual Integrated Economic Survey (AIES)

The United States Census Bureau released preliminary estimates from the Annual Integrated Economic Survey (AIES) which provides key measures of economic activity, including the only comprehensive national and subnational data on business revenues, expenses and assets on an annual basis, allowing to track economic trends, assess industry performance, support police development and inform economic planning, resource allocation and market.

The AIES replaces and integrates seven annual business surveys into one survey. The surveys integrated into the AIES are:

• Annual Capital Expenditures Survey (ACES)
• Annual Retail Trade Survey (ARTS)
• Annual Survey of Manufactures (ASM)
• Annual Wholesale Trade Survey (AWTS)
• Manufacturers’ Unfilled Orders Survey (M3UFO)
• Report of Organization (COS)
• Service Annual Survey (SAS)

The survey parameters use as basis in the North American Industry Classification System (NAICS), and some key statistics are tabulated including Capital Expenditures, Employment, Inventories, Payroll, Sales, Receipts or Revenue and Research Expenses.

In the preliminary results available, that based on 2023 data, considering the United States scenario, the highlights are:

a. Annual Payroll:

• 1st place: Health care and social assistance (NAICS 62)
• 2nd place: Professional, scientific, and technical services (NAICS 54)
• 3rd place: Finance and insurance (NAICS 52)

b. Number of Employees:

• 1st place: Health care and social assistance (NAICS 62)
• 2nd place: Retail trade (NAICS 44-45)
• 3rd place: Accommodation and food services (NAICS 72)

c. Revenue:

• 1st place: Wholesale trade (NAICS 42)
• 2nd place: Manufacturing (NAICS 31-33)
• 3rd place: Retail trade (NAICS 44-45)

In addition, there were some regional highlights, such as:

• Retail Trade Sector: Generated $1.4 trillion in revenue in the Midwest and had an annual payroll of $235.8 billion and employed 6.8 million people in the South.
• Information Sector: In the west, there were 1.4 million employees (a coefficient of variation equal 0.7%) and an annual payroll of almost $251.2 million.
• Finance and Insurance Sector: Special highlight in Northeast region, with the sector ranking second in both Revenue (generated $1.8 trillion) and annual payroll ($271.1 billion). Additional information about the survey and results can be found at: Annal Integrated Economic Survey (AIES)

 

2) Business Trend and Outlook Survey (BTOS)

At the same time of the AIES, the Census Bureau released new data of the Business Trend and Outlook Survey (BTOS), a survey that measures business conditions and projections on an ongoing basis. BTOS data are representative of all employer businesses in the U.S. economy (excluding farms) and provides insight into the state of the economy by providing continuous timely data for key economic measures and business expectations about future conditions.

In the most recent results, the overall projections are positive, with prospects for growth in all aspects of business analyzed for the next six months, notably a 3.3% improvement in performance, an increase in employees of more than 0.8%, and a 1.1% increase in demand.

Overall, the Current Performance Index stands out in the Finance and Insurance, Health Care and Social Assistance, and Professional, Scientific and Technical Services sectors.

Finally, one aspect evaluated in the survey that deserves attention is the use of artificial intelligence (including as example: machine learning, natural language processing, virtual agents, voice recognition, etc.) in the business in producing goods or services, and if, in the next six months, there would be a possibility for the company to use AI in its processes. The highlights are:

a. National:

• The company has already used AI in the last two weeks: 9.4% (an increase of 56% compared with the beginning of 2025 year, and 154% compared to the 2023 year).
• The company think will be using AI during the next six months: 13.5% (an increase of 42% compared with the beginning of 2025 year, and 114% compared to the 2023 year).

b. States:

• The company has already used AI in the last two weeks: The state with the highest percentage was CO, with 12.7% and the state with the lowest percentage was WI.
• The company think will be using AI during the next six months: The state with the highest percentage was again CO, with 19.2% and the state with the lowest percentage was NM.

c. Sectors:

• The sector with the highest percentage was Information Sector (NAICS 51) in both scenarios (with 23.8% in the company has already used AI parameter, and 31.8% will be using AI during the next six months).

These results involving artificial intelligenceare good indicators of the development of this technology, as well as companies’ perception of the importance of adapting their processes and products to the new technological revolution. This perspective has been consistently positive throughout the period analyzed, as shown in the global graph of survey data for the United States: