Harvard study: AI startups have smaller teams and hire fewer junior staff

A new study from Harvard Business School and INSEAD shows that AI-native startups have 25% smaller teams, about 13% more engineers, and 15% fewer junior employees and managers compared to non-AI-native startups.

The study defines two types of AI-native companies: those using AI to boost employee productivity in areas like coding and sales, and those embedding AI into core products so customers can automate tasks that once needed human teams.

Data also reveals a 20% higher demand for senior experts in AI-native startups, highlighting a shift in workforce structure driven by technology. The findings are based on Y Combinator and US venture-backed startups from 2020 to 2024.