The impact of AI on the job market is a hotly debated topic, and new data reveals an intriguing twist. While AI adoption is linked to increased hiring, the benefits are not evenly distributed across age groups and professions.
Gusto's payroll data analysis paints a nuanced picture of AI's influence on small businesses. Despite concerns about AI replacing jobs, the research suggests that companies embracing AI are, in fact, hiring more. However, the growth is not concentrated in AI-heavy roles or among young professionals.
Gusto's methodology, which scores jobs based on AI exposure, reveals that businesses with higher AI exposure experience revenue growth. On average, a 10% increase in AI exposure leads to a 2.2% monthly revenue boost six months later. This growth often translates into hiring more employees, with a 1.6% increase observed in businesses that adopt AI-exposed work.
But here's where it gets controversial: the job gains seem to favor older, experienced workers in less AI-intensive roles. Total small business employment grew by 9.6% from 2023 to 2025, but employment in highly AI-exposed occupations, such as copywriting, accounting, and customer service, grew at a much slower rate of 3.4%. What's more, the headcount of workers aged 22-28 in these roles has actually declined, indicating a slowdown in hiring entry-level workers.
The Gusto report suggests that as AI automates routine tasks, employers may prefer experienced employees who can provide judgment and create business value using AI tools. This trend is consistent with other research, highlighting the need for a skilled workforce to effectively leverage AI.
So, while AI is connected to more hiring overall, the growth is not as straightforward as one might expect. It favors older workers and those in less AI-exposed roles. This raises important questions about the future of work and the skills needed to thrive in an AI-driven economy. What are your thoughts on this? Do you think AI will ultimately create more jobs or lead to a shift in the types of roles available? We'd love to hear your insights in the comments!
