Small Businesses that Adopted AI Are Hiring Faster

Rather than replacing workers, AI adoption is associated with faster hiring among small businesses. Gusto found that businesses using AI increased headcount about 7% more in the following year than comparable businesses that knew about AI but had not adopted it. The effect was even greater among businesses with fewer than 10 employees, which grew their teams about 10% more, while small community-service businesses such as health care and education saw gains approaching 20%.

The findings give sellers another reason to view AI adoption as a potential signal of business growth. Consider prospecting health care providers, educational businesses, restaurants, salons, construction companies, manufacturers, accounting firms and other small businesses using AI, particularly those that may be adding employees, serving more customers and investing in expansion.