Small businesses are not waiting around to see whether AI works. Many are already paying for it, using it daily, and deciding it may be more attractive than hiring another person.
A new survey from Thryv found that 46 percent of small and mid-sized business owners would choose AI software over a new employee if both could perform the same task equally well. That is up from 38 percent in 2025.
That is the real story here. AI is no longer just another shiny business tool. For a growing number of owners, it is becoming a direct alternative to labor.
There is one small problem. Many of those same owners admit they do not really know how to use it.
Thryv says 66 percent of small businesses now use AI, up from 55 percent a year ago. At the same time, 70 percent said they need more training to use it effectively.
In other words, businesses are buying AI faster than they are learning how to handle it. Some are even turning to tools such as ChatGPT for advice on how to use AI, which is a bit like asking a car salesman whether you need a new car.
The claimed benefits are substantial. Seventy percent said AI increased revenue, 55 percent said it reduced costs, and 92 percent said it saved time. More than half are spending at least $100 per month on AI tools.
Those numbers deserve some caution. The survey covered 561 U.S. business owners and decision-makers, and the results are self-reported. It is easy to credit AI when business improves and much harder to prove it caused the improvement.
AI does not appear to be crushing hiring just yet. Only 13 percent said they hired fewer people because of it, while 55 percent said hiring continued as planned.
Still, the direction is obvious.
Small businesses may not be replacing workers in large numbers today, but nearly half already say they would choose software over a person when given the option. Employees should probably stop treating AI as a future threat. The decision-makers are already running the comparison.
Support independent tech journalism
NERDS.xyz is independently owned and operated. If you enjoy my coverage of Linux, AI, hardware, cybersecurity, and tech culture, consider supporting the site on Ko-fi.
Support NERDS.xyz