Gusto Report Finds Gen Z Entrepreneurs Are Heavy Early Users of AI in New Business Formation

Entrepreneurs are turning to AI to speed the creation of new businesses, with Gen Z leading the way. That's according to a new report released by the payroll software firm Gusto. The findings come as artificial intelligence tools become more accessible for tasks ranging from idea generation to incorporation paperwork and initial marketing.

Gusto's report highlights how these technologies are compressing what once took weeks or months into far shorter timelines. NPR reported that the Gusto study points to Gen Z entrepreneurs as the most aggressive adopters. This cohort, born between 1997 and 2012, has grown up with digital tools and appears more comfortable integrating AI into foundational business decisions.

The NPR article was published on May 14, 2026 at 5:06 PM ET. It was written by Andrea Hsu. Hsu's piece, which aired on All Things Considered, noted that audio of the segment would be available later that day.

The story also appeared with options to share via Facebook, Flipboard and Email. Gusto, primarily known for its payroll and HR software tailored to small businesses, compiled the data from its broad view of new company formations. The firm observed patterns in how AI is being deployed at the earliest stages of entrepreneurship.

The report arrives at a moment when AI large language models and automation platforms have matured enough for non-technical founders to leverage them effectively. Previous barriers around coding expertise or design skills are diminishing as generative tools handle more of the heavy lifting.

While the Gusto data does not include specific percentages or absolute numbers of AI-assisted startups, it underscores a directional shift.

Entrepreneurs across age groups are experimenting with the technology, yet Gen Z stands out for both frequency and sophistication of use. The trend reflects broader changes in the startup ecosystem. Traditional hurdles such as market research, business plan drafting and even basic website creation are being streamlined, potentially lowering the overall cost and time required to test new ideas.

NPR reported that the Gusto findings illustrate how younger founders in particular are treating AI as a co-pilot rather than a novelty. This approach may accelerate the overall pace of business formation in the United States in coming quarters.