It’s no secret that AI adoption is becoming increasingly common in American businesses. But it’s not just giant corporations that are taking advantage of it. 2026 Intuit QuickBooks Survey (PDF) found that 77% of small businesses now regularly use AI, up from 48% two years ago.
If you run a small business, you may be increasingly relying on AI tools to improve productivity and save money. In fact, the same QuickBooks study found that 78% of U.S. respondents reported increased productivity and 42% reported increased revenue from using AI. For large companies, research from PwC found that investing at least 1.6% of revenue in AI tools yields 9.5% growth (measured in EBITDA). Additionally, AI can help create documented workflows and efficiencies that can result in a higher sales price when you’re ready to sell and retire.
But what if these tools are making some of your employees’ tasks obsolete?
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On a scale of 1 to 5, which of the following describes your current view on the impact of AI on productivity? (U.S. small businesses asked.)
79% of respondents said AI would be “very helpful” or “somewhat helpful” to improving productivity in 2026.
(Image credit: Intuit QuickBooks, Small Business Insights, April 2026)
Firing employees can be a frustrating decision for small business owners. But when your personal finances are at stake, you may have to make difficult choices.
If you are a business owner who wants to join forces for a few more years and then sell your business to raise capital. retirementyour company must remain profitable and competitive. That means cutting unnecessary costs and using technology to your advantage. Here’s how to reconcile the economic side of the equation with the moral and emotional side.
Look to AI as a time saver above all else
A.I. You may be able to take over some of the tasks that your employees are currently responsible for. But that doesn’t mean those employees suddenly lose all value.
Paul Carlson“You don’t want to make a decision out of guilt or continue to pay a salary that doesn’t make economic sense for your business,” said CPA and managing partner at Velocity, a law firm that provides de facto CFO and financial services to law firms across the country.
However, just because AI saves time doesn’t mean employees with years of business knowledge and experience are suddenly no longer needed, he explains.
“What can help you make a more prudent decision is to first see if the free time can actually improve other aspects of your business,” Carlson says. These aspects may be things that AI cannot handle, such as strategic decisions that require more human intervention and judgment.
Carlson says that discovering AI’s time-saving capabilities could mean making better use of employee skills rather than giving them away.
“In most small businesses, employees will definitely wear multiple hats over time, so if AI suddenly saves someone five or six hours a week, that doesn’t mean they can’t do their part, especially given the kind of context they have about what works for the business and what doesn’t,” he explains.
Carlson also points out that if you’re running a lean operation, you may not be tracking the different ways your employees are contributing. Before you let them go, it’s worth taking a closer look.
“Some employees are essential to spotting mistakes,” he says. “Some people are good at answering questions that others don’t have time for, or they take pride in following up with customers. All of these factors can play a big role in your company’s reputation and customer satisfaction.”
EJ Simonsen, Founder and Financial Advisor End of EIDLI agree. His best advice? “Exchange tasks, not people.”
“Mundane administrative tasks can be handled by AI,” he says. “Use the time you save to shift employees to higher-value initiatives such as customer service, business development, process improvement, and customer retention. These areas have a high impact on the bottom line and are often very difficult to automate. This allows you to stay competitive while investing in your team.”
Get it right and AI can add even more value to your business
Retirement is imminent and within the time 10-year exit planyou need a sound strategy that allows your business to maintain an edge without spending money on unnecessary costs.
Founder Kevin Williams Ascend AIadvises executives and small business owners on AI adoption, governance, and workforce readiness. And given the timeline, he says, there is a great opportunity to leverage AI in ways that can add value to the business without reducing headcount.
“Companies where AI is used strategically and whose teams know how to leverage AI will trade at higher prices,” he argues. “Such companies are considered mature companies where things work efficiently. Buyers will pay a premium for that.”
Williams also said, “We will use AI to increase each employee’s productivity by 20-30%, creating a lean and capable organization that is highly valued by potential buyers.” [several] Years away — it is How to retire successfully. ”
Simonsen said the bottom line is that companies with well-run businesses and good, skilled people are generally worth more. On the other hand, if AI makes your business feel cold, automated, or robotic, customer retention can suffer.
“Balancing compassion with business decisions is part of building a better company,” he says.
Of course, successful AI implementation requires investment. Additionally, training employees on how to use it can take time away from daily tasks until staff become familiar with the job. But if you’re willing to sacrifice some short-term profits, you may find that AI can make your company more profitable in the long run, putting you in a stronger position when you’re ready to sell.
It’s also important to be transparent with your employees about how you are considering integrating AI. Nothing kills employee morale more than the fear of being replaced by a machine. Emphasize that you are deploying AI tools to make their jobs easier, not to replace them.
“Guilt doesn’t come from using AI technology. It comes from the choices you make.” [regarding] Use of AI. ” — Kevin Williams
remove guilt from the equation
It’s natural to feel disgusted at the idea of firing a hard-working employee. But if you use AI correctly, that may not be necessary.
“If you feel guilty about AI, it’s because you’re completely missing the point,” Williams says. “Guilt doesn’t come from using AI technology. It comes from the choices you make.” [regarding] Utilization of AI. ”
Of course, you may find yourself with a role or two in your company. teeththe fact is that the advent of AI has made it obsolete and the labor cost cannot be justified. In that case, it’s important to do your best to terminate those employees ethically.
If you can afford to be generous. retirement allowancecan help soften the economic blow for those affected while improving the quality of their night’s sleep. Be empathetic but realistic.
But overall, Williams says, using AI to empower workers rather than replace them can lead to greater economic success. By doing so, you can advance your own personal endeavors financial planning Without the remorse that might come with destroying someone else’s life.
