SMBs use AI training to attract talent amid big firm cuts

Small and medium-sized businesses are increasingly using AI training programs to attract talent away from larger companies that have downsized and scaled back benefits, according to a new study by General Assembly. The survey, conducted in June and July 2026, polled 526 human resources and learning and development leaders across U.S. and U.K. companies with 50 to 999 employees.

The findings show that 81% of SMB HR leaders believe layoff and benefit reductions at larger firms have made recruiting easier, and 47% have hired from larger companies within the past year.

AI has reshaped talent strategies for 66% of SMB HR leaders, with 30% hiring more staff due to opportunities presented by the technology. However, 40% have bypassed otherwise qualified candidates because of a lack of AI skills. Despite this, 87% of SMBs reported seeing a return on investment from AI, with over two-thirds planning to hire for additional roles by year-end.

AI tools and platforms are a priority for 77% of SMBs, while 70% have invested in AI skills training. The majority, 64%, are upskilling current employees to address AI skill gaps, compared to 25% hiring new talent with AI expertise and 11% using external consultants. Role-specific training proved most effective, with 35% citing it as the most impactful approach, followed by tool training at 26%.

A majority of SMBs offer role-specific training for each team or department (51%), and 50% provide tool-specific training. Seventy-one percent of SMBs utilize generative AI, 46% use AI-powered automation, and 30% employ agentic AI. SMBs allocate around 46% of their AI budgets to tools and 34.5% towards employee training.