Small Businesses Using AI Hire 7% More Staff, Survey Finds

Small businesses that adopt artificial intelligence are expanding their workforces rather than cutting jobs, according to new survey data that challenges the prevailing narrative around automation and employment.

A Gusto survey of approximately 2,000 small businesses found that companies using AI increased their headcount by roughly 7% more than comparable businesses that did not adopt the technology, Inc. first reported. The research suggests productivity gains from AI can create capacity for growth rather than simply replacing human workers.

Where the hiring is happening

The additional employees are filling customer-facing and hands-on positions that require human interaction and physical presence. Businesses added therapists, care workers, teachers, technicians, cooks, and some front-desk and administrative staff.

According to the survey, 64% of small businesses are currently experimenting with AI tools. Among those adopters, nearly two-thirds report the technology makes it easier to launch or operate their businesses.

How AI enables expansion

The mechanism behind this hiring growth centers on task reallocation. AI absorbs routine operational work including scheduling, marketing activities, and research tasks. This shift allows business owners to redirect their attention toward customer relationships and strategic growth initiatives.

One business owner cited in the research reported saving approximately $5,000 monthly in software costs while increasing organic sales nearly fivefold after implementing AI for automated content marketing, wholesale research, and outreach activities.

Experts note that AI gives small teams access to capabilities that previously required hiring additional employees or contracting outside support. By enabling businesses to serve more customers, accelerate operations, and enter new markets, the technology can create conditions that support rather than eliminate jobs.

The broader employment picture

The findings arrive amid ongoing concerns about AI-driven job displacement. One consulting firm reported that AI was responsible for nearly 55,000 U.S. layoffs in 2025, underscoring the technology's disruptive potential in certain sectors and company sizes.

The divergence between small business hiring patterns and broader displacement trends suggests that AI's employment impact may vary significantly based on organizational size, industry, and implementation approach.

Why it matters

This research provides early evidence that AI adoption doesn't automatically lead to workforce reduction, particularly for resource-constrained small businesses. The 7% hiring differential suggests that when small companies gain operational efficiency, they're more likely to invest in growth and customer service than to pocket savings through headcount reduction. For business leaders evaluating AI investments, the data indicates that automation tools may be better framed as growth enablers rather than cost-cutting measures—a distinction that could shape both adoption strategies and workforce planning.

The full details were first reported by Inc.