AI's impact on hiring is a double-edged sword, sparking both hope and concern. AI is linked to more hiring, but the benefits are unevenly distributed.
A recent study by Gusto reveals a fascinating trend in the hiring landscape of small businesses. When analyzing payroll data, they found that businesses embracing AI are indeed hiring more, but the real story is more nuanced.
Gusto's research, which assessed AI exposure using a method developed by OpenAI and the University of Pennsylvania, assigns a score to each job based on AI's potential to accelerate tasks. The higher the score, the more AI-exposed the job is, but this doesn't necessarily signal job loss. It simply indicates the relevance of AI tools to the role.
Here's where it gets interesting: When businesses adapt to more AI-exposed work, revenue often increases. For every 10% increase in AI exposure, there's a corresponding 2.2% monthly revenue boost after six months. And hiring follows suit, with a 1.6% increase in employees over the same period.
But here's the twist: The jobs created or saved tend to favor older, more seasoned professionals in fields that are not heavily reliant on AI. From 2023 to 2025, small business employment rose by 9.6%, but in highly AI-exposed occupations, like copywriting, accounting, and customer service, growth was a mere 3.4%. Even more striking, younger workers aged 22-28 in these roles have seen a decline in numbers, suggesting AI's impact is sparing experienced employees while leaving early-career workers vulnerable.
The Gusto report aligns with other studies, indicating that AI's automation of routine tasks may lead employers to prefer seasoned workers who can leverage AI effectively and make strategic decisions.
And this is the part most people miss: While AI is creating new opportunities, it's also reshaping the job market, potentially leaving some younger workers behind. So, is AI a job creator or a disruptor? The answer, it seems, is both.
What do you think? Are we witnessing a new era of hiring where AI is both a friend and foe? Share your thoughts in the comments, and let's explore this complex issue together.
