The big picture: A new Gusto payroll study reveals that small businesses adopting AI are hiring more, not less, with the smallest firms increasing their workforce by up to 10% in the year following AI integration.

Why it matters: This finding challenges the prevailing narrative that AI primarily leads to job displacement, suggesting it can be a significant driver of employment growth, particularly in hands-on roles within the SMB sector.

Between the lines:

• Gusto tracked 1,593 AI-adopting businesses against 669 non-adopters.
• The most significant hiring gains were observed in the smallest firms.
• Job growth occurred predominantly in hands-on positions, not just tech-specific roles.

Staffing & HR impact: Staffing agencies should target AI-adopting small businesses as a growing market for talent, focusing on non-technical placements. HR leaders can leverage AI to enhance productivity while reassuring employees about job security and potential for new roles.

The bottom line: AI is proving to be a job creator for small businesses, fostering expansion rather than contraction.