According to Inc, LinkedIn’s “How Small Businesses Can Win in 2026” report, published December 3, reveals a massive shift. The data shows a 69% increase in users adding “founder” to their profiles since July 2024. Furthermore, 79% of all U.S. small companies have already adopted AI in some form. About 37% of employees at these businesses use it for daily tasks like emails, while 27% use it for advanced work like data analysis. Crucially, 50% of small business employees said AI’s rise has made them consider entrepreneurship, a path they hadn’t previously thought about.
AI: The Great Enabler
Here’s the thing: this isn’t just about writing better marketing copy. It’s about fundamentally changing the calculus of starting a business. All those administrative, analytical, and creative tasks that used to require a small team or expensive outsourcing? They’re now within reach of a solo founder. The report states AI can “automate routine tasks in customer service, generate marketing content, streamline the hiring process, and enhance decision-making.” That’s a powerful cocktail for someone with a good idea but limited capital. It lets small brands, as 76% of small business marketers agree, “punch above their weight.” So the fear of AI as a pure job-destroyer is getting a serious counter-narrative. It’s becoming the ultimate sidekick for the aspiring boss.
The Human Pillar Still Matters
But—and this is a huge but—the report is clear that AI alone isn’t a magic wand. There’s a fascinating tension here. While adoption is soaring, with AI literacy skills jumping 44% at smaller firms, people are deeply wary of the AI-generated content flood. So what’s the response? They’re falling back on the oldest tech in the book: human networks. A majority of respondents said they increasingly rely on personal and business networks for advice to cut through the noise. Small business owners are apparently working harder than big companies to strengthen these networks. It’s a classic human reaction to tech saturation. We’re using machines for scale and speed, but we’re doubling down on trust and authenticity to actually close deals. The report frames it as a three-pillar strategy: AI for speed, brand credibility for trust, and networks for influence.
What This Means For The Market
This creates a fascinating competitive landscape. The barrier to entry for countless service-based and digital businesses is collapsing. That means more niche competitors, more innovation, and honestly, more noise. The winners won’t just be the ones who best prompt an AI. They’ll be the ones who combine that new efficiency with genuine human connection and a clear, trusted voice. The losers? Possibly mid-tier service providers who get undercut on price and speed by AI-empowered solopreneurs. It also puts immense pressure on platforms and toolmakers. If every small business is now a tech company, the demand for intuitive, integrated AI tools that handle everything from inventory to customer insights will explode. Providers that can deliver that for the SMB sector will win big.
The Bottom Line
Basically, we’re watching the democratization of business operations. A tool that seemed like an enterprise luxury a few years ago is now in the hands of the local bakery and the freelance consultant. The question is no longer *if* a small business will use AI, but *how*. And the answer seems to be: use it to handle the grunt work, so you can focus on the human stuff that actually builds a lasting company. It’s a pragmatic, and surprisingly optimistic, view of our tech future. The race isn’t just to adopt AI; it’s to adopt it wisely while strengthening the human elements that machines can’t replicate.
