New research from the Upwork Research Institute reveals that small and medium-sized businesses (SMBs) are turning market disruption into a competitive advantage by strategically adopting AI and flexible talent models. The study, which surveyed nearly 500 SMB leaders, found that those who maintained steady confidence throughout a volatile 2025 did so by committing to technological innovation and a dynamic workforce.
SMBs using AI to scale report significant growth, with 93% seeing increased revenue.
41% of AI-adopting SMBs reported revenue increases exceeding 10%.
SMBs that avoided a mid-year confidence dip were twice as likely to have fully implemented AI.
Job posts for AI expertise on Upwork rose 44% between January and July 2025.
Upwork's Business Plus offering now includes Uma Recruiter, an AI hiring agent.
The AI agent delivers pre-vetted talent matches from the top 1% of the marketplace in under six hours.
The research identifies a clear correlation between AI adoption and business resilience. SMB leaders who maintained steady confidence were twice as likely to have fully implemented AI across both front-office and back-office functions. Furthermore, 30% of these confident SMBs retooled their operating models with an AI-first mindset. Supplemental research conducted with Zoom quantified this impact, showing that 93% of SMBs using AI to scale reported an increase in revenue, with 41% of those seeing gains over 10%. Additionally, 82% reported cost reductions and 91% saw a year-over-year ROI on their AI investments.
Beyond technology, access to specialized skills was a key differentiator. The study found that 31% of SMB leaders relied on flexible talent to tap into needed expertise, a trend evidenced by a 44% rise in job posts for AI skills on the Upwork Marketplace. The most successful SMBs also embedded a culture of experimentation, with 23% of leaders designating innovation as a core organizational capability, allowing them to approach disruption as an opportunity.
To directly support this SMB growth trajectory, Upwork has enhanced its Business Plus offering. This premium service now provides clients with instant access to the top 1% of talent on the marketplace across more than 125 work categories. A key new feature is Uma Recruiter, an always-on, AI-powered hiring agent that understands business needs and delivers a shortlist of pre-vetted expert talent matches in under six hours, enabling faster and smarter hiring decisions.
The findings underscore a strategic shift among growth-oriented SMBs. “SMBs learned defensive strategies alone were not enough to withstand disruption,” said Dr. Gabby Burlacu, senior research manager of the Upwork Research Institute. “Our research shows the SMBs that played offense by embracing flexible talent, AI tools, and continuous experimentation have positioned themselves for adaptability and long-term growth in the face of whatever uncertainty and disruption comes next.” By combining an AI-powered workforce with flexible human expertise, SMBs are building a formidable edge.
Upwork Inc.’s family of companies connects businesses with global, AI-enabled talent across every contingent work type including freelance, fractional, and payrolled. This portfolio includes the Upwork Marketplace, which connects businesses with on-demand access to highly skilled talent across the globe, and Lifted, which provides a purpose-built solution for enterprise organizations to source, contract, manage, and pay talent across the full spectrum of contingent work. From Fortune 100 enterprises to entrepreneurs, businesses rely on Upwork Inc. to find and hire expert talent, leverage AI-powered work solutions, and drive business transformation. With access to professionals spanning more than 10,000 skills across AI & machine learning, software development, sales & marketing, customer support, finance & accounting, and more, the Upwork family of companies enables businesses of all sizes to scale, innovate, and transform their workforces for the age of AI and beyond.
TechIntelPro empowers B2B technology decision-makers with the latest industry trends, deep insights, leadership perspectives and actionable intelligence to drive both organizational and professional milestones—and thrive on the tech pulse.