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Instead of cutting jobs, AI adoption is fueling startup hiring

Startups adopting AI report higher hiring rates and increased reliance on contractors, with 68% expanding teams despite rising operational costs, according to Mercury's survey.

  • In the past year, 79% of AI-adopting startups reported hiring more, while 61% with some AI use also expanded teams, Mercury found.
  • Founders adopting AI say they are more likely to hire full-time staff, rely on contractors and increase spending, with 79% planning to raise investment, Mercury reports.
  • Data show contractors are central: 45% of significant AI adopters are very reliant on contractors, compared to 12% of non-AI adopting companies in the past year.
  • Despite higher costs, 65% of respondents said talent acquisition costs rose in the last year, yet only 3-4% of AI users reported hiring less, showing persistent expansion.
  • Contractor strategies suggest 38% of entrepreneurs with significant AI adoption use contractors to access global talent, and startups value this flexibility for specialist skills without long-term commitments.
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Instead of cutting jobs, AI adoption is fueling startup hiring

Mercury reports AI adoption is boosting startup hiring, with 68% expanding teams despite rising costs, blending growth, and flexibility in uncertain times.

·Atlanta, United States
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The Tribune broke the news in San Luis Obispo, United States on Wednesday, August 27, 2025.
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