High-growth tech startups that have integrated AI conversational agents have seen their workforce increase by 4.3% compared to those not using this technology, according to new research by Stephen Michael Impink, assistant professor of strategy at HEC Paris, and Manav Raj from the University of Pennsylvania. The study, which analyzed 13,241 digital software startups between 2019 and 2024, provides concrete insights into the impact of AI on employment in these companies.
This workforce increase spans sales, IT development, and customer service functions. The sales sector shows the fastest growth, while customer service, despite potential automation by chatbots, also saw its numbers rise. This trend suggests that startups are not only hiring to support growth but are also rethinking their organizational structures.
“"We often think that automating customer-facing tasks will lead to staff reductions. On the contrary, startups that adopted AI conversational agents hired more people, with the most significant increase in sales. This is less about substitution and more about expanding companies' capabilities."
The link between AI chatbot adoption and employment growth is particularly strong in startups that have already launched a product and are entering a growth phase. This association is also more pronounced in startups with advanced technological infrastructure and, counterintuitively, in those with limited financial resources, as chatbots help them optimize their means.
The findings contradict the idea that AI is primarily adopted to reduce labor costs. Chatbots handle repetitive tasks, freeing up employees to focus on complex situations, strategic client relationships, and product improvement based on user feedback. This time-saving capability is especially valuable in fast-growing startups with often limited human resources.
These conclusions align with a 2023 survey by 8x8, which found that only 6% of surveyed companies used chatbots to reduce staff. To date, in high-growth tech startups, AI adoption is accompanied by an increase, rather than a decrease, in headcount. However, the authors note that these findings could evolve and differ in larger or less technologically advanced companies.
