Over 4 in 5 SME owners have no plans to use AI: ScotPac
SME owners are aware of AI technology but the vast majority have no plans to adopt it in the near future, the SME Growth Index Report reveals.
Around 85 per cent of SMEs do not plan on implementing the use of AI into their business soon, according to a recent SME Growth Index Report by ScottPac.
The research report was conducted by East & Partners, which interviewed 722 SME enterprises with annual revenues of A$1-20 million.
Only 15 per cent of SMEs surveyed stated that they had adopted AI in their business or were planning to do so soon.
The SME Growth Index Report found that around half or 51 per cent of SMEs were aware of AI technology but did not see the potential benefits or impacts.
Just over a quarter said they had no knowledge of AI technology, while 4 per cent said they felt AI was either a competitive threat or a cyber security risk.
Of the SMEs that have adopted some form of AI technology, twice as many were in a growth phase compared with declining growth SMEs, the SME business lender said.
Among the SMEs that offered a view on what areas of their business AI will likely influence, the top three applications were for customer service, identifying new business opportunities and sales and business development management.
ScotPac chief executive Jon Sutton said while the application of AI technology among SMEs was low for now, several factors pointed to that situation changing soon.
Mr Sutton said that as SMEs become more aware of the application of AI in areas like customer service, marketing, inventory management and education, it is inevitable that adoption rates will increase.
“There is an understandable level of fear and scepticism about some of the impacts of AI technology, including job displacement, data privacy and workflow changes,” he said.
“However, the potential for AI to increase SME productivity while reducing wage bills and contractor costs will be a compelling proposition for many businesses.”
Mr Sutton said one of the main impediments for SMEs in implementing AI technology will be upfront costs.
“Investment in areas like hardware, software, IT talent acquisition and employee education will all be required upfront before AI efficiency gains are realised in the longer term,” Mr Sutton said.
“The good news for SME owners is that specialist advice on relevant AI applications and implementation is becoming more readily available.”
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