Small businesses in the U.S. and U.K. are taking advantage of layoffs caused by artificial intelligence (AI) at larger firms, according to a recent survey by General Assembly. The study found that 81% of small businesses report benefiting from these layoffs. This trend is making it easier for them to recruit talent. Nearly half of the respondents, 47%, said they have hired employees from larger companies that downsized due to AI.
Key Details
The survey included 526 HR professionals from small firms with 50 to 999 employees. It revealed that 67% plan to hire more workers through the rest of 2026. Of those, 30% aim to expand their headcounts to meet demand and seize new opportunities. In contrast, only 26% of small businesses reported hiring fewer workers. Additionally, 16% are relying on AI to perform tasks that were previously done by employees.
In the U.K., a separate survey by Lloyds found that over 70% of large businesses plan to increase AI investments to boost productivity. The Lloyds Business Barometer indicated that 54% of companies believe AI has led to job creation. A quarter of employers are increasingly hiring candidates with AI skills. Amanda Murphy, CEO of business and commercial banking at Lloyds, stressed the need for firms to build skills and confidence in using AI effectively.
Background
Despite these positive trends, concerns remain about the overall impact of AI on jobs. Analysis from the Bank of England suggests that while firms using AI are becoming more productive, these gains may lead to job losses.
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The shift toward AI-driven hiring practices could affect sectors like technology and human resources, where demand for skilled workers is rising. Investors will be watching for further developments in AI investments and their effects on employment trends.
Based on reporting by: forbes.com, businesstimes.com.sg