Hiscox: Nearly 3 in 5 Small Businesses are Already Using AI or Plan to do so Within Two Years

Hiscox Survey reveals that most small businesses are AI-curious when it comes to internal operations, but word-of-mouth reigns supreme for recruitment efforts.

Atlanta, GA – August 12, 2024 - Hiscox, the specialist global insurer, reveals a stark contrast in attitudes of small business owners towards the value of technology versus humans. The Hiscox People and Programs Report found that 76% of small businesses in the US see AI knowledge as valuable for the future, however the most common recruitment method is still offline (66%), like through word of mouth or family members, ahead of using digital tools (62%).

• Small businesses are overwhelmingly AI-curious: While only 26% are currently using AI, 76% of small business owners see AI knowledge as valuable for the future, and among those who don’t have AI but want to, 75% plan to implement it into their business within two years’ time. Small businesses are well-prepared for an AI-future, with 62% of SBOs reporting that their employees already have the know-how to use AI tools. Of the businesses that have no plans to use AI, 85% may be already using AI software unknowingly. Currently, small businesses are tapping into AI with email software (72%), and online distribution channels (56%).
• Life is better working for a small business: On average, for every four employees that move from a small business to a large corporation, five go the other way - leave a large corporation to join a small business. They generally enjoy a better quality of life, working an average of 8 hours a day, retiring at 63, and only spending 3 weeks in the recruitment process with an average of 2 interviews.
• Small businesses are community superheroes, despite the challenges it brings: Most small businesses still choose to recruit employees through word of mouth (49%), prioritizing this over digital recruitment tools with larger pools of applicants; nearly 2-in-5 (38%) don’t use any digital tools at all. This can hurt their chances of finding the right candidates as the biggest challenge for hiring employees is not being able to find enough qualified applicants (30%). Despite this, small businesses still plan to recruit employees through word of mouth in the future (56%), and 78% indicated that offering a competitive salary is not a challenge for them in hiring employees, keeping investment in local communities.
• Recruitment is improving for small businesses: During the great resignation, 61% did not fill any vacancies, and on average, it took 5 weeks to hire a new employee. In 2023, it was easier to hire new employees, with an average of 4 weeks taken to fill a vacancy. Sales, typically the most people-driven and personality-based area of the business, is the top area that small businesses are looking to recruit in (48%).

“The topic that’s dominating headlines and minds across the world right now is AI. What does it mean for our businesses, our people and where can it add value,” said Laila Gillies, Head of People at Hiscox USA. “This research shows that small businesses are more than dialed into the conversation; they’ve already identified where AI can drive benefits, but most importantly, where the human connection matters most. Small businesses are the guardians of our local communities, and perhaps, our humanness too.”

Methodology

The Hiscox Survey was conducted by Wakefield Research (www.wakefieldresearch.com) among 1,000 US small business owners defined as those with 1 to 50 employees, between April 23rd and May 5th, 2024, using an email invitation and an online survey. Data has been weighted.

Results of any sample are subject to sampling variation. The magnitude of the variation is measurable and is affected by the number of interviews and the level of the percentages expressing the results. For the interviews conducted in this particular study, the chances are 95 in 100 that a survey result does not vary, plus or minus, by more than 3.1 percentage points from the result that would be obtained if interviews had been conducted with all persons in the universe represented by the sample.

Related Materials

https://www.hiscox.com/documents/2024-hiscox-people-and-programs-report.pdf

About The Hiscox Group

Hiscox is a global specialist insurer, headquartered in Bermuda and listed on the London Stock Exchange (LSE:HSX). Our ambition is to be a respected insurer with a diverse portfolio by product and geography. We believe that building balance between catastrophe-exposed business and less volatile local specialty business gives us opportunities for profitable growth throughout the insurance cycle.

The Hiscox Group employs over 3,000 people in 14 countries, and has customers worldwide. Through the retail businesses in the UK, Europe, Asia and the USA, we offer a range of specialist insurance for professionals and business customers as well as homeowners. Internationally traded, bigger ticket business and reinsurance is underwritten through Hiscox London Market and Hiscox Re & ILS. In the US, Hiscox small business Insurance is underwritten either by Hiscox Insurance Company Inc., a Chicago-based insurance company, or a Hiscox Syndicate at Lloyd’s, London, which is available on a surplus lines basis through licensed surplus lines brokers.

Our values define our business, with a focus on people, courage, ownership and integrity. We pride ourselves on being true to our word and our award-winning claims service is testament to that. For more information, visit www.hiscoxgroup.com.

Media Contacts

Lucy Baines
Hiscox USA
+1 646 560 9399 
[email protected]

Hayley Susino
Hiscox USA
+1 646 452 2365   
[email protected]