Will AI Cut Outsourcing? US Business Startups Slump

Before the pandemic, Americans were starting fewer companies. Experts worried about this drop in business dynamism. Now, a new question arises: Will artificial intelligence (AI) make companies outsource more or less? AI is changing how businesses work. Some firms may use AI to do tasks in-house, reducing the need to hire outside workers. Others might find it cheaper to outsource work to countries where AI tools are used by low-cost labor. This shift could reshape global supply chains. For now, the answer is unclear. But as AI grows, companies must decide: keep work local or send it abroad?