Small businesses using AI are 45% more likely to fill open positions

Small businesses across America are increasingly adopting generative AI tools to enhance operations and leadership functions, with one-third currently experimenting with the technology and a quarter already seeing positive results.

Key adoption trends: The 2024 State of Small Business survey by Gusto reveals significant variance in AI adoption among small businesses, with 43% yet to consider using generative AI while others embrace it enthusiastically.

• Nearly one-third of small businesses are actively experimenting with generative AI tools
• A quarter of businesses implementing AI report positive outcomes
• AI-equipped small businesses are 45% more likely to successfully fill open positions

Impact on talent acquisition: Generative AI is proving particularly valuable in addressing persistent hiring challenges faced by small businesses.

• Industries experiencing the most significant labor shortages, including education, healthcare, and hospitality, are finding AI tools especially beneficial
• The technology helps redistribute workloads, allowing employees to focus on their core skills
• Business owners report increased workplace attractiveness when AI handles routine tasks

Real-world applications: Small business owners are finding innovative ways to leverage AI across various operational areas.

• Isaiah Industries used AI to create training videos for contractors, accelerating their customer education process
• Limitless Fitness employed ChatGPT Premium to streamline contract operations and optimize scheduling
• Peer Power’s founder utilizes AI to overcome communication challenges related to cerebral palsy, including creating an AI “clone” for consulting purposes

Operational efficiency: AI implementation is helping small business owners manage their multiple roles more effectively.

• Business owners report significant time savings in routine tasks and administrative duties
• The technology assists in creating operational manuals, analyzing business metrics, and developing marketing strategies
• Small businesses using AI are showing improved revenue performance and operational scaling capabilities

Growth implications: American Express survey data indicates stronger growth prospects for AI-adopting businesses.

• 50% of AI-using businesses plan to expand their workforce in 2025
• Only 36% of non-AI adopters have similar growth plans
• Business owners report being able to focus more on strategic growth initiatives rather than day-to-day operations

Looking ahead: While AI adoption among small businesses shows promise, leaders are approaching the technology thoughtfully to mitigate potential risks like data security concerns and AI hallucinations, suggesting a measured but steadily increasing integration of AI tools into small business operations.