Small businesses that adopt AI hire more workers
A new report's findings bolster evidence that AI is leading to growth for entrepreneurs.
TL;DR
- Very small businesses that adopt AI are hiring employees at a faster rate compared to non-adopters.
- Small businesses using AI grew headcount 5% more than non-AI users in the first year, according to a Gusto report.
- The effect was most pronounced in companies with fewer than 10 employees, which grew teams by an average of 10% after adopting AI.
- AI adoption may free up time for tiny companies to focus on growth rather than daily tasks.
- Hiring among adopting companies has been for hands-on roles, not administrative tasks.
- Businesses with 10 or more employees did not show a headcount change.
- The findings are based on Gusto customer payroll data and may not apply to the wider economy.
- The report acknowledges correlation and that early AI adopters might differ in unobservable ways.