Students earning cash with their first side hustle, full-time working parents supporting their families, and retirees pursuing entrepreneurial ambitions are increasingly using AI to build businesses. The rise of generative AI tools is empowering solopreneurs—self-employed individuals without employees—to launch and grow businesses that were once only dreams a few years ago.
In 2022, the U.S. had nearly 30 million solopreneurs generating about $1.7 trillion, or 6.8% of the economy. California had the highest total number of solopreneurs, but Florida led per capita with 13.3 solopreneurs per 100 people. Generative AI is enabling entrepreneurs to start businesses even with limited resources.
AI adoption among small businesses is rapidly increasing. A 2025 U.S. Chamber of Commerce study found 58% of small businesses use generative AI, up from 40% in 2024 and 23% in 2023, mainly for customer engagement and inventory management, with 84% planning to expand AI use. Jordan Crenshaw of the U.S. Chamber highlights that AI helps small businesses compete more effectively despite smaller teams.
Solopreneurs like Angela Berardino, who started a boutique marketing firm, say AI has become like an army of assistants helping with research, note-taking, and data analysis, allowing their businesses to scale to human teams.
AI support can start even before launching a business. Mark Valentino of Citizens Bank points out that using AI tools like ChatGPT to create business plans can let someone launch a side hustle within minutes, potentially good enough for lenders. AI could even help build the first one-person “unicorn” startups.
Early-stage entrepreneurs like Sarah Gwilliam, who developed an AI tool for family grief support, benefit from incubators providing capital, product, sales, marketing, and back-office support alongside AI capabilities. Available AI tools cover nearly every business function: branding, social media writing, scheduling, note-taking, and customer support.
Cautions About AI Use
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AI poses risks such as data privacy breaches and intellectual property issues.
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Popular AI models are trained on vast internet data, including personal information scraped without consent, which may appear unintentionally in outputs.
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Proprietary data may be exposed if input carelessly.
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Privacy settings and compliance with federal/state laws are crucial to protect your business.
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Generative AI models can reproduce biases (racism, misogyny) and generate hallucinations—false or misleading information.
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Human review of AI outputs is essential to avoid financial, legal, or reputational harm.
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AI should be used as a supportive tool—not the sole decision-maker or strategist.
Understanding the legal and compliance aspects of AI use before adopting it is recommended to safeguard your business and ensure responsible application of these powerful technologies.