The latest SME Growth Index Report by non-bank business lender ScotPac has found that only 15 per cent of Australian SMEs have implemented Artificial Intelligence (AI) technology in their business or plan to do so soon, while 85 per cent have no plans to use AI anytime soon.
The report further revealed that 51 per cent of SMEs are aware of AI technology but had not yet fully grasped its potential benefits or impacts and 28 per cent of SMEs said they had no knowledge of AI technology. Meanwhile, four per cent of SMEs said they felt AI was either a competitive threat or cybersecurity 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 report also noted that while most SMEs surveyed did not provide an answer as to what areas of their business AI will likely influence, the top three applications identified by those who responded were: customer service, identifying new business opportunities, and sales/business development management
ScotPac CEO, Jon Sutton, commented that while the application of AI technology among SMEs was low for now, several factors pointed to that situation changing rapidly.
“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,” Sutton said. “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.
“However, the potential for AI to increase SME productivity while reducing wage bills and contractor costs will be a compelling proposition for many businesses,” he added.
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,” Sutton said. “The good news for SME owners is that specialist advice on relevant AI applications and implementation is becoming more readily available.”
