From the article:

Jump-started by the pandemic, when a confluence of factors including mass layoffs and remote work led to a flood of business creation, and supercharged by the rise of artificial intelligence, start-up activity is booming after a decades-long slump.

Americans filed 5.7 million applications last year to start new businesses, according to the Census Bureau, the most in the two decades the government has kept track. New business applications through the first half of this year continued to climb.

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The strong run of business creation is one of the most surprising and welcome economic developments of the post-pandemic era. New businesses help drive innovation and productivity growth. Although many fail or remain small, some could develop into giants that spur job growth for years to come.

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Data on the number of business formed each year lags, so it will take time to determine whether the increase in new business applications translates to a rise in real-world businesses and hiring. In 2023, the most recent year for which the data is available, half a million businesses formed, according to the Census Bureau. That was down slightly from the previous year but broadly consistent with an upward trend.

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More recently, there are signals that A.I. is adding fuel.

A recent paper from economists at the University of British Columbia and the Stockholm School of Economics found that generative A.I. was “spurring entrepreneurial activity” in the United States, both by giving rise to new ventures built around the technology and by making it cheaper to start enterprises.

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According to a recent report from Gusto, a small-business payroll and benefits service, nearly 60 percent of founders on its platform who started businesses last year said they used A.I., and half said the technology made it cheaper and faster.

The technology appears to be greasing the path for entrepreneurs, removing some barriers and allowing them to get their enterprises off the ground more quickly. Chatbots are effectively serving as virtual collaborators that can answer questions, carry out tasks and write code.

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Census data shows that the rise in business applications has been driven by start-ups that are not likely to hire workers rather than by those that are. That, some economists believe, is more evidence that A.I. is eviscerating obstacles to entrepreneurship.

Ernie Tedeschi, the chief economist at Stripe, a financial tech firm, said the government’s data, as well as an analysis of Stripe users, indicated a jump in solo entrepreneurs who might be using A.I. for tasks that once required human employees.

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Other factors could be stoking the rise in start-up activity.

The low-hire, low-fire labor market that has persisted for much of the past two years could be causing some unemployed workers to turn to other sources of income. The high-flying stock market and lofty home prices could be encouraging business investments. E-commerce platforms such as TikTok Shop could be producing a new category of third-party sellers. Swelling business creation could be a reflection of optimism in the country’s trajectory. It is also possible that A.I. is making it easier to fill out applications.