A survey conducted by venture capital firm Index Ventures and Slush refutes concerns that artificial intelligence (AI) will reduce jobs in startups. Instead, four out of five startups expect their workforce to grow or remain stable over the next five years. AI skills, however, are highly valuable, offering nearly a 10% salary premium for startup employees. Among startup workers, 64% self-educate on AI topics, dedicating an average of four hours a week to learning.
European startups view AI primarily as a driver of growth. According to the survey by Index Ventures and Slush, 49% of startup representatives believe AI will increase headcount over the next five years. Another 29% expect it to stay the same, while only 10% foresee reductions.
The survey, which included 600 European startups (76% of which were founders), alleviates fears that increased AI adoption will lead to significant job cuts in startups.
Founders acknowledge that AI can automate certain tasks but see it as an enabler for doubling growth, enhancing efficiency, expanding teams, and creating new jobs.
According to Index Ventures’ earlier Scaling Through Chaos report, founders spend 50% of their time on people-related matters—a figure expected to remain unchanged in the AI era as they intensify recruitment efforts and focus on bridging AI skills gaps, especially in design and product development.
“We anticipate that the efficiency gains brought by AI will lead startups to grow faster than ever. Contrary to common fears, AI is accelerating recruitment across many sectors. This gives founders the opportunity not only to scale their businesses but also to aim for bolder visions,” says Hannah Seal, a partner at Index Ventures.
Half of Startups Expect AI to Boost Recruitment in Design and Product Development
Nearly half of startups believe AI will create new job opportunities, particularly in design and product development. About 34% of respondents predict the largest growth in engineering roles, with specialists in large language models and AI being the most sought-after. Another 15% see significant headcount growth in product teams, as startups aim to hire product managers capable of contributing across areas like language model development and infrastructure building.
While most startups expect AI to increase workforce numbers, some foresee reductions in specific functions. When asked to identify teams most likely to experience cuts, respondents pointed to design (18%), marketing (18%), and customer service (15%).
“AI doesn’t necessarily reduce the headcount in functions like marketing but provides new scalability opportunities. It enables us to scale operations across over 50 countries, generating localized content for various channels. Traditionally, scaling has been challenging as growing teams rapidly can dilute expertise. AI allows us to scale while keeping teams compact and focused on high-level skills,” comments Antoine Le Nel, Chief Marketing and Growth Officer at Revolut.
AI Skills Drive Salary Growth
AI skills have proven valuable, with employees possessing such expertise earning nearly 10% higher salaries than their peers. As startups invest in AI, employees are responding by upskilling. Startup workers spend around four hours weekly on AI training, often on their own initiative.
Leadership sets the tone, with 60% of employees citing a “AI-first” culture driven by their leaders as a motivating factor for their learning. Among respondents, 64% rely on self-study, while 29% receive training from their employers.
Despite this proactive learning culture, startups report skill gaps in areas like engineering (36%), sales (23%), and product expertise (12%), with similar gaps seen among entry-level professionals.
“AI has made some of our teams 100–200% more efficient. While an established company might use this efficiency to reduce headcount and boost profitability, startups are all about growth. For us, the question is how to use this efficiency to continue scaling quickly. AI makes every hire more valuable, accelerates onboarding, and generally drives growth. We’re now focused on recruiting for roles where AI can deliver the most significant benefits,” says Joel Nordstrom, CEO of Atlar.
