Small businesses are hiring more as they adopt AI
AgenciesArtificial intelligence may be changing how small businesses operate, but it is not necessarily shrinking their workforces at the moment. New data suggests the opposite may...
Artificial intelligence is not leading to job cuts in small businesses, but rather encouraging job growth, according to new findings from payroll platform Gusto. The data, collected from over 2,000 companies, reveals that adopting AI has led to a 7% increase in employee headcount compared to similar businesses that have not adopted the technology.
This trend is most pronounced among the smallest firms, with those having fewer than 10 employees expanding their teams by around 10% more than those without AI. This growth is attributed to AI taking over tasks that were previously handled by employees, allowing small businesses to focus on customer acquisition and service expansion.
Instead of replacing workers, AI appears to be creating new positions, particularly in hands-on roles related to delivering products or services. While the study cannot conclusively prove that AI directly leads to hiring, it does suggest a correlation between AI adoption and job creation in small businesses. The findings are based on Gusto's survey of its customers, which, while not randomly selected, provides a snapshot of how AI is being integrated into small businesses.
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