A new global survey of small to medium-sized businesses (SMEs) has revealed that while some SMEs in Australia and New Zealand are beginning to adopt AI, half of them have yet to incorporate it into their operations.
The survey, conducted by Peninsula Group across Australia, New Zealand, Canada, Ireland, and the UK, found that security risks are the primary concern around AI for approximately a quarter of respondents in ANZ (24 per cent in Australia and 26 per cent in New Zealand) and 47 per cent overall globally.
“While AI offers immense potential to boost productivity and streamline processes, concerns about its risks are growing, especially in the wake of high-profile cyber breaches. Given Australia’s vulnerability, it’s no surprise that small businesses are wary of sharing data with third parties, which is a prerequisite for most AI tools,” said David Price, CEO at Peninsula ANZ and BrightHR ANZ.
Other concerns among the global respondents include reputational impact (+183 per cent), risk of breaking the law (+183 per cent), loss of intellectual property (+178 per cent), and impact on work quality and productivity (+158 per cent).
In the ANZ region, concerns of losing intellectual property and an increased margin of error tied in second place are key worries for Australian respondents. Meanwhile in New Zealand, it was work quality and/or productivity.
“It’s clear that while small businesses are slowly dipping their feet in the water when it comes to adopting AI, their concerns around the risks it carries are stopping them from diving straight in and widely implementing new technologies,” says Price.
Despite the aforementioned concerns about AI, ANZ SMEs are considered to still be the most likely to use AI regularly compared to SMEs in other countries.
AI in the workplace: now and in the future
The survey noted that the most popular use of AI for small businesses in both Australia and New Zealand was for administrative tasks, at 18 per cent and 19 per cent, respectively. Specific uses include creating meeting agendas, summarising documents or resources, and drafting emails or communications.
In addition, 47 per cent of the ANZ SMEs have stressed that people remain irreplaceable in their business, amid fears of AI replacing people in performing tasks. However, 22 per cent believe that AI will replace jobs at their company at some point.
“As the cost of doing business rises in 2024, employers are understandably assessing where they can decrease overheads, speed up processes, boost productivity, and ultimately, boost profits. So, it’s no surprise to see SME business owners and employers voice the prediction that some positions will become redundant as AI is increasingly adopted,” said Price.
AI is perceived as having the potential to positively transform workplaces for roughly a third of ANZ respondents (32 per cent in Australia and 33 per cent in New Zealand). New Zealand SMEs are noted to be more likely to say AI was useful, but that it won’t overtake traditional ways of working, at 29 per cent. This belief was lower in Australia, at 21 per cent.
“Whilst small businesses aren’t completely opposed to using AI, they’re seeking clarity and assurance when it comes to security, productivity, and quality of output. These are concerns that AI developers will need to address if they hope to increase its uptake in the global SME community,” Price concluded.
