A year is a long time in AI. It is also long enough to go back and ask what happened to some of the predictions.
The story was supposed to be straightforward: AI would do more of the work, and businesses would need fewer people. The research arriving through 2026 makes for a more interesting read.
There is growing adoption, encouraging feedback from small-business owners and a shift in the kinds of freelance work earning more. The job cuts reported in one major survey also fell well short of what respondents had expected a year earlier.
For a founder or business owner, that raises an appealing question: what could we now get done that would have been difficult, expensive or time-consuming before?
Small business AI adoption is growing in 2026
The movement from late 2025 through 2026 is becoming easier to see.
- Small-business AI use rose from 56% in Q4 2025 to 58% in Q1 2026 and 61% by Q3. These are the results from OnDeck’s surveys of US small-business customers. OnDeck and Ocrolus, Small Business Cash Flow Trend Report.
- UK business AI adoption doubled, from 16% in the 2025 comparison to 32% in the 2026 survey. Published in October, the latest findings draw on interviews conducted January–April 2026. UK government, AI Adoption Survey 2026.
- Large-company respondents reporting that they were scaling AI agents increased from 27% to 40% year over year. Agents are tools that can carry out sequences of tasks, with the level of human supervision varying by system. McKinsey, State of AI 2026.
For small businesses, the first of those comparisons is especially interesting. AI is becoming part of the working environment for more owners, alongside the larger-company investment that tends to dominate the news.
The possibilities extend across ordinary business work: preparing material, researching an idea, maintaining a website or bringing information together. A small team has plenty of things it would like to improve if it could find the time.
AI productivity and business returns: what owners report
The useful question is what people are getting out of that increased use.
- 90% of AI users in OnDeck’s Q3 2026 survey reported a positive business impact. Improved marketing performance and fewer errors were each cited by 39%. OnDeck and Ocrolus.
- 71% of small employer firms using AI reported higher productivity, 39% better quality and 31% higher sales. These findings appear in the Federal Reserve’s March 2026 report, based on its late-2025 survey. Federal Reserve, Report on Employer Firms.
- 35% of enterprise leaders tracking at least one growth measure reported strongly positive AI returns on investment, compared with 13% tracking efficiency alone. Wharton and GBK Collective, October 2026 AI Adoption Report.
- The share reporting some positive company-wide earnings impact stayed around 37%, even as enterprise-wide AI scaling rose from 38% to 44%. McKinsey, State of AI 2026.
There is progress here, alongside room to do better. Marketing that performs better, fewer mistakes and improved quality are benefits an owner can understand immediately.
The growth finding also catches my attention. Saving time has value, but so does using that time to improve an offer, develop an idea or serve customers better. That is where AI becomes an interesting business conversation. I explore that connection in AI subscription vs AI integration: what changes the work?
AI and jobs: fewer cuts than expected, new hiring plans
The prospect of job losses attracts attention. The latest reports also contain expectations of additional hiring and a sizeable gap between last year’s forecast and subsequent experience.
- 32% of McKinsey’s 2025 respondents expected AI-related workforce reductions; 14% of respondents at AI-using organisations reported reductions in its 2026 survey. These figures describe respondents reporting company changes. McKinsey, State of AI 2026.
- 48% of Canadian business leaders said their department’s AI use would drive additional hiring in 2026. Robert Half surveyed 1,500 business leaders across Canada. Robert Half, AI’s Impact on Hiring.
- The vast majority of small-business AI users reported no change in labour costs, despite the productivity gains reported in the same survey. Federal Reserve, Report on Employer Firms.
- Canadian hiring rates for younger workers declined across groups with different levels of potential AI exposure. Statistics Canada’s October analysis examined employment data through August 2026. Statistics Canada, Hiring and Job Separation Rates.
For founders, the interesting possibility is increased capacity: being able to pursue more of the work already on the list. The business may still need people, and what those people can accomplish may change.
There is no need to pretend every transition will be easy. But there is considerably more happening than a simple countdown to everyone being replaced. These findings add a new chapter to my earlier article on AI and the tasks changing inside our jobs.
Expectation / reported outcome
Looking back at the workforce forecast
AI and freelance work: more contracts, changing earnings
This part of the research is particularly relevant to businesses buying services and to those of us delivering them.
- Contract starts in generative AI and creative production grew 90% year over year on Upwork, while earnings per contract fell 13%. Upwork, Future Workforce Index 2026.
- AI-augmented professional services grew 72% in volume, with earnings increasing 22%. This category involves specialists applying AI within established professional fields. Upwork, Future Workforce Index 2026.
- Freelancers doing more complex work with AI saw earnings increase 45% year over year. Upwork, Future Workforce Index 2026.

Those figures add a substantial chapter to the story. More work is being commissioned, while the economics differ according to the work involved.
For a client, AI-assisted production could make a more ambitious project practical. There may be room to explore more options, connect more of the pieces or spend more attention on the finished result.
For the person delivering the work, experience still has a job to do. Understanding the business, choosing an approach and recognising what needs improvement all contribute to what the client receives.
That is where I see an opportunity for businesses such as Salient AI: use the tools to deliver useful work, and keep improving what we can offer.
What these AI trends mean for startups and small teams
A startup founder rarely runs short of ideas. The difficulty is finding the time, money and expertise to take enough of them further.
Consider a business exploring a new service. It might need a clearer explanation of the offer, a page on its website, supporting material and a way to handle enquiries. AI can assist with parts of that work and make an initial version easier to develop.
The founder can then look at something concrete, improve it and decide whether the idea deserves more attention. Where specialist help is needed, there is a clearer starting point for that conversation too.
That is one reason I find the combination of rising adoption and changing contract work encouraging. Small businesses may have more ways to move an idea forward, whether through their own efforts, their team or experienced outside help. That small-team potential is also the starting point for AI best practices for startups.
The value still rests in what gets delivered. More versions, more content or more activity are useful when they help create a better result.
Why we keep working with AI every day
At Salient AI, we work with AI every day. We explore the tools, try different approaches and apply what we learn to real business work.
That daily involvement shapes how I read these reports. I am interested in what is changing across the market, and equally interested in what we can actually do with the technology in front of us.
Think about a website. Producing a first version is part of the work. Making the offer clear, improving the customer journey and keeping the site useful over time add to its value. AI gives us more ways to contribute to that process, while the business purpose continues to guide it.
The same applies to content, marketing and connecting business tools. We keep exploring because there may be a better way to produce the next piece of work or a useful addition we can now make practical.
For the client, the question at the end of the day is whether we have delivered something worthwhile. That is what we are working towards.
For a closer look at that practical side, read What I Actually Do With AI All Day.
Prepared from Stephen Lau’s supplied direction, with AI-assisted research and drafting. Sources checked November 10, 2026.
