9 out of 10 Small Businesses Use AI tools, mostly for automation and analytical functions

• Small Firms Association conducts nationwide survey on AI usage in small business sector
• Barriers to adoption include a lack of staff and resources
• Government must work with business on skills and supports that address barriers to identifying and pursuing AI opportunities.

Research from the Small Firms Association (SFA), shows that 9 out of 10 small firms surveyed are using artificial intelligence (AI) for one or more business processes. The nationwide survey was recently conducted by Amárach. The most popular uses for AI were reported to be automation of simple tasks (66 percent of respondents) and data analytics reporting (44 percent of respondents).

The main barrier to deeper adoption of AI, is the lack of technical expertise followed by time pressures and a lack of a clear business strategy.

The sentiment around adopting AI tools is broadly positive, particularly amongst providers of financial and professional services. Over two thirds of businesses said that they are either enthusiastic or curious about using AI tools.

Three quarters of small businesses surveyed have either started or are planning to investigate business use cases for AI. The retail sector respondents had the highest proportion of those that have not started or have no plans to use AI.

Commenting on the AI research, David Broderick, Director of the Small Firms Association said:

“AI is the defining technology of our time, and it will fundamentally shift how business is done. While the survey shows that small businesses are interested and curious about it, AI adoption remains shallow among small firms as it is mostly confined to content generation and simple data analysis, rather than innovation, product development, or decision-making. Therefore, many businesses have not yet explored its full potential.

“Small Businesses will need to adopt AI strategically to keep up with large businesses to survive. At a time when various business costs are spiralling, AI has the potential to boost productivity, enhance efficiency and ultimately lower operational costs.

“Government should work with business to leverage an unlocked National Training Fund (NTF) to fund investment in up/re-skilling programmes in digital and AI. A digitally ready labour force is key to maintaining our competitiveness and digital/AI inclusion.

“The government also must ensure that Digital for Business and the Grow Digital Voucher supports further digital and AI adoption and increase private sector access to innovation supports, particularly the R&D tax credit.”

ENDS

Notes to Editor:

• Please see the full AI survey report on our SFA Small Business Survey page.
• The Small Firms Association proudly represents a diverse membership of businesses employing up to 50 employees: homegrown and spanning every sector of the economy with members found in every town and every city in Ireland.
• For further details or interviews, please contact SFA Public Affairs Lead, Jonathan McDade at jonathan.mcdade@sfa.ie or 0876253551