This Harvard Business Review Analytic Services report, sponsored by TriNet, presents findings from a November‑2025 pulse survey of 230 U.S. small‑ and midsize‑business (SMB) leaders about how artificial intelligence (AI) is reshaping talent strategy. The report frames AI as a transformative force comparable to the Web and globalization, then details key survey highlights: 79% say AI drives upskilling, 76% plan to increase AI use, yet only 19% feel highly prepared to acquire AI talent. Respondents anticipate AI will change how they develop/train employees (56%), alter required candidate skills (37%), and affect engagement, hiring, onboarding, and performance evaluation. The analysis outlines emerging hybrid roles that blend data literacy, domain expertise, and business acumen, and identifies major obstacles—difficulty defining needed AI skills (56%), training/upskilling (49%), evaluating candidates (37%), and hiring (33%). The report lists the top AI‑related skills SMBs expect to need in the next two years, led by experience using AI tools (55%). Expert commentary and case examples (Vizrt, Blockchain Association, BCG, UMass Lowell) illustrate practical approaches: AI‑assisted recruiting, low‑cost upskilling via LinkedIn Learning, strategic partnerships, and emphasis on distinctly human traits (creativity, empathy, judgment) that form a “wisdom economy.” The report concludes with projected benefits (streamlined operations, higher productivity) and a call for SMBs to adopt agile, AI‑enabled talent practices. Methodology details and respondent demographics are provided at the end.
Topics
AI as a Strategic Disruption for SMB Talent Management
Frames AI as a transformative force that compels small‑ and midsize‑businesses to rethink every aspect of talent strategy, from hiring to retention.
AI as a Transformative Talent Force for SMBs
Sets AI alongside the Web and globalization as a historic catalyst reshaping how SMBs plan, attract, and develop talent.
Survey Highlights: Upskilling Demand and AI Adoption Readiness
Key quantitative findings – 79% cite upskilling need, 76% plan to increase AI use, only 19% feel highly prepared to acquire AI talent.
Projected Shifts in SMB Talent Strategies Due to AI
Respondents’ expectations for changes in training, hiring criteria, employee engagement, onboarding, and performance evaluation.
Hybrid Role Evolution: Blending Data Literacy, Domain Expertise, and Business Acumen
How AI is prompting the creation of roles that require a mix of technical, domain, and strategic skills rather than isolated tasks.
Key Obstacles SMBs Face in Acquiring AI Talent
Barriers identified by the survey: difficulty defining needed AI skills (56%), training/upskilling (49%), evaluating candidates (37%), hiring (33%).
Top AI‑Related Skills SMBs Expect to Need
Ranked skill demand for the next two years – experience using AI tools (55%), implementation knowledge (46%), data literacy (40%), risk/security (31%), model building (30%), ethics (29%), legal (17%).
Strategic Approaches: Low‑Barrier Upskilling, Partnerships, and AI‑Assisted Recruiting
Case examples (Vizrt, Blockchain Association) and recommendations for cost‑effective training, strategic talent partnerships, and AI‑driven hiring pipelines.