AI adoption boosts hiring for small businesses

A new report reveals that very small businesses adopting AI technologies are experiencing faster employee growth compared to those not using AI. According to Gusto, a payroll platform for small businesses, companies that integrated AI saw a 5% increase in headcount within the first year of adoption, compared to non-AI users. The effect was most pronounced for businesses with fewer than 10 employees, which grew their teams by an average of 10% one year after adopting AI. Last year, a Gusto survey found that nearly two-thirds of small businesses were experimenting with AI. While the data is limited to Gusto customers who responded to a survey, the findings suggest AI may be making entrepreneurship more accessible by reducing the need for early hires. The report counters the job apocalypse narrative, highlighting AI's potential to drive growth for small businesses in the short term.