Why Small Businesses Using AI Are Hiring Faster

Nich Tremper, senior economist and head of Gusto Insights at Gusto · MTS

Nich Tremper is a senior economist at Gusto, the payroll and HR platform, and head of Gusto Insights. He leads its research on the state of small businesses in America. The month before this interview, Gusto published a report on how AI adoption affects small-business hiring. Gusto's research draws on payroll data from the small businesses that use it.

Summary

Tremper says small businesses that adopted AI grew headcount 7% faster than peers, with the strongest growth, about 10%, at firms under 10 employees. The effect spans industries from mental health clinics to plumbers, and hiring kept rising each quarter after adoption. Owners are choosing to reinvest productivity gains in their teams. With 2026 a record year for business applications, he expects more hiring as new firms grow. These signals are from an MTS interview with Nich Tremper.

1. 7% Faster Hiring. Gusto's report found small businesses using AI grew headcount 7% faster than peers. The growth was concentrated at the smallest firms, where those with fewer than 10 employees grew headcount by about 10%. Tremper says media coverage often claims AI is killing jobs, and Gusto wanted to test that for small businesses. Owners are taking AI's productivity gains, serving more customers and growing their teams. ▶ 0:40