US business applications surge as AI and deregulation boost entrepreneurship

Treasury Secretary Scott Bessent warned that the rapid increase in U.S. business formation deserves more attention, noting that July saw 578,926 new applications, an 8.1% jump from June and the strongest month in the Census Bureau’s series. AI tools are enabling founders to launch with fewer staff and lower expenses, particularly in professional, scientific, technical and information sectors. Surveys from Gusto and research by Nasdaq confirm that a majority of new founders used AI, and many plan to expand hiring.

The Trump administration’s deregulation agenda, including a rule requiring agencies to repeal ten existing regulations for each new one, and tax measures like permanent 100% bonus depreciation, are presented as further catalysts. Economists stress that young firms are key drivers of job creation and productivity, suggesting one outlet policy and technology mix could broaden entrepreneurial participation.