Startups Use AI To Reduce Early Hiring

A Bank of America Institute report this week found 'high propensity businesses' rose 15.1% year-over-year in January, while business applications explicitly planning to hire employees fell 4.4%. The report and related data show small businesses increased tech spending 14% last month, and founders are using AI tools—illustrated by TurboAI’s lean 13-person growth and Block’s layoffs—to replace early hires and reshape staffing.