Figure 3. The gap widened as generative AI became broadly available

Solo-type business applications indexed to 100 in Q1 2022

Both groups are indexed to 100 in Q1 2022. AI-exposed sectors include Professional Services, Information, Education, and Finance and Insurance. The comparison group includes Construction and Wholesale Trade. The vertical line marks Q1 2024. Solo-type business applications are an author-constructed proxy calculated as total business applications minus high-propensity business applications. The measure captures applications without the characteristics the Census Bureau associates with near-term employer formation; it is not a direct count of realized solo businesses.
Chart: Liya PalagashviliSource: U.S. Census Bureau, Business Formation Statistics (BFS)