Nearly half of small businesses intend to reduce hiring due to AI adoption

A recent survey conducted by FreshBooks among 1,000 small business owners in the United States and Canada reveals that almost half of them have plans to reduce hiring due to the adoption of artificial intelligence (AI). Interestingly, these owners do not believe that AI will pose a threat to their own jobs in the near future.

The survey focused on the current usage of AI by small business owners and their predictions for its future implementation. It found that 25 percent of the respondents already utilize AI tools such as ChatGPT, Google Bard, and Microsoft Bing AI in their businesses. These tools are primarily employed for content writing, image creation, and research purposes.

Approximately 44 percent of small business owners anticipate reducing their workforce in the coming years due to the capabilities offered by AI. However, a majority of two-thirds expressed confidence that their own jobs would not be directly targeted by AI. The industries expected to experience the most significant impact from AI adoption, according to the survey, include analytics (52 percent), sales and marketing (46 percent), customer communications (45 percent), accounting and finance (42 percent), planning/strategy (40 percent), service/delivery (29 percent), and hiring/recruiting (28 percent).

Although small business owners acknowledge various concerns associated with AI, such as privacy, ethical considerations, and intellectual property issues, these concerns have not deterred them from embracing AI in their own operations. Eighty percent of the respondents expressed worries about privacy and other related matters, yet this apprehension has not significantly affected their adoption of AI technology.

Overall, the survey indicates that while small business owners recognize the potential challenges and implications of AI, they remain optimistic about its benefits and are actively integrating it into their businesses. The intention to reduce hiring suggests a shift towards utilizing AI as a means to enhance productivity and streamline operations