The question of whether AI will replace employees breaks down in practice into a more precise question: which tasks within a job can it take over. Most positions consist of dozens of different activities, and it is a part of them, not the whole, that tends to be automatable – typically repetitive processing of text and documents, preparing materials, searching documents and routine communication. What remains is decision-making under uncertainty, relationships with customers and suppliers, accountability for the outcome, and dealing with exceptions, of which small companies have the most. The practical consequence is that savings do not appear automatically – if the freed-up time is not used elsewhere, costs stay the same. It equally holds that for decisions affecting people, regulation requires human oversight, so full replacement is not possible there, either technically or legally.
See also: AI Adoption by Employees, Human oversight of AI, Return on AI investment.