What Small Businesses Need To Know About AI Hiring In 2026

"Small business owners spend a lot of time and energy looking for top candidates. Finding the right people to fill jobs is one of the biggest challenges small businesses face when trying to hire. With a shrinking job market, finding qualified candidates can be extremely challenging for small businesses. However, many of these challenges are being alleviated by AI. AI is providing small and medium-sized businesses with the tools to make hiring decisions more efficiently, as larger organizations have had in the past."

"According to recent LinkedIn data, 66% of all small businesses that hire say it is more difficult to find qualified talent today than it was last year. The majority of those surveyed cite a lack of qualified applicants as their primary concern. "Hiring qualified talent is a challenge to businesses worldwide; however, small businesses are hit the hardest," said Andrew Chimka, Senior Director of Product Management at LinkedIn. "With fewer employees and limited resources, the pressure on small businesses is significant.""

"According to a 2026 report by Business.com, nearly 57% of all U.S.-based small businesses are currently using AI technologies to support their hiring processes; this represents a 21% increase from the 36% of small businesses that were using AI to aid in their hiring efforts in 2023. Rather than simply representing growing interest in AI-based hiring solutions among small business owners, the current trend toward AI-based hiring represents a need for such solutions."

AI is changing how companies hire talent and is becoming accessible to small and medium-sized businesses to streamline recruiting. Small business owners spend significant time and energy finding top candidates, and a shrinking job market makes it difficult to locate qualified applicants. LinkedIn data shows 66% of hiring small businesses report increased difficulty finding qualified talent, with a lack of qualified applicants as the primary concern. Executives note that fewer employees and limited resources intensify pressure on small businesses. Growth in AI-based hiring solutions is driven by these pressures. A 2026 report found nearly 57% of U.S. small businesses use AI for hiring, up from 36% in 2023, indicating a shift from interest to necessity.

Read at Forbes