American workers find new jobs before being replaced by AI

In January 2025, Travis Di Lombardi-Spicer (30 years old) quit his job as soon as he was denied a raise and felt that artificial intelligence (AI) could wipe out his job. News about companies like Amazon, Salesforce and Block – which cited AI in laying off tens of thousands of employees over the past year – was part of what made him decide to leave his old job. Spicer wanted to be proactive, instead of continuing to make about $75,000 a year from full-time audio production and freelance projects, then waiting for AI to replace him.

Realizing that the labor market was also unstable, Spicer turned to starting a business. He sold off his personal assets and withdrew money from his savings account for $40,000, then launched the pilot version of Spotbookr in May 2025. This is a consumer and advertising spending analysis platform, with AI applications.

Based on data from the US Census Bureau, CNBC said Americans submitted 1.56 million applications to register businesses in the period November 2025 to January 2026. This is the highest level in more than 20 years.

In fact, this trend is predictable. When workers have difficulty finding jobs, especially in the context of a stagnant labor market or mass layoffs, they are more likely to establish their own businesses.

However, this wave of startups is different. Fearing future layoffs, some Americans proactively quit their jobs to start a business before being laid off. Many people say AI makes startups easier. Others say they want to decide for themselves when to leave before falling victim to artificial intelligence-related layoffs. Spicer said he himself is an example of both trends.

“Budgets for audio projects are getting lower and lower. I just want to be proactive,” Spicer said.

Starting a business inherently carries many risks. According to data from the US Bureau of Labor Statistics, about 25% of new businesses in the country cannot survive past the first year.

However, workers are increasingly concerned about the risks of working in traditional offices, in a context where experts and business leaders predict major changes in the workforce. In a Resume Now survey late last year of more than 1,000 employed adults in the US, 40% said AI had “replaced, reduced value or duplicated” some part of their jobs. 29% see AI as being able to perform at least half of their daily tasks.

After 5 years working as a software engineer at a large media corporation in the US, Michelle Yeung (29 years old) said she felt unhappy. Yeung earns about $250,000 per year, including bonuses. However, the more AI develops, the more clearly she sees the possibility that this technology can replace her and feels disoriented.

Yeung said that besides AI, there are many other factors that make him dissatisfied with his job. She wants to “switch from only dedicating about 20% of herself to 200% for something”.

In early 2025, Yeung quit his job and used his savings to open Matcha House in East Village, New York in July of the same year. “I really enjoy creating something with my own hands and giving it to customers, while building relationships with them,” she said.

Yeung and Spicer said they currently have no salaries from their new businesses and are accepting reduced spending. Spicer’s girlfriend currently bears most of their living expenses. Meanwhile, Yeung moves to a cheaper apartment and stays with a new friend.

Todd McCracken, President of the Small Business Association in the US, said that employment in businesses is less stable than before, causing many people to want to start their own businesses. The US recorded a sharp decline in the number of new jobs in 2025, with 116,000 positions created compared to 1.46 million last year.

Experts say AI can threaten the employment stability of some workers. However, this technology also makes it easier for those who want to start a business to start. AI can assist in creating a basic website or building a business plan without the need for expertise. In some cases, artificial intelligence can also handle basic tasks that founders previously had to do themselves or hire others to do.

Shahezad Contractor (44 years old) is the founder and CEO of the Cousin’s Food restaurant chain in Philadelphia. Contractor has worked in the information technology field for 24 years. He said the spread of AI in the technology industry was one of the factors that motivated him to quit his job in 2024 to start a business. Last year, Contractor’s startup consolidated revenue was more than 4 million USD.

Contractor said he regularly uses AI, especially large language models like Claude, to generate social media content ideas, build employee training materials, and write copy. “Previously, I had to hire someone to write content,” he said, but AI has helped him fill the skills gap to do it himself. He even uses AI to find new locations for his restaurant system, and also builds financial forecasts for existing stores.

Benjamin Jones – Professor of entrepreneurship and strategy at Northwestern University’s Kellogg School of Management said that AI can assist some small business owners, but does not guarantee long-term success. “More startups means more competition,” he said.

However, Jones believes that starting a business always requires accepting risks and failure. “It’s very difficult to know what will work until you try it. When you start a new business, you’re on an adventure,” he said.