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A recent global survey has put into question whether small to medium-sized businesses are actually adopting artificial intelligence within their operations. The Peninsula Group Survey revealed that while some businesses in Australia and New Zealand are starting to use it, half haven’t incorporated AI into their operations yet. Conducted in August 2024 across five countries […]
A recent global survey has put into question whether small to medium-sized businesses are actually adopting artificial intelligence within their operations.
The Peninsula Group Survey revealed that while some businesses in Australia and New Zealand are starting to use it, half haven’t incorporated AI into their operations yet.
Conducted in August 2024 across five countries – Australia, New Zealand, Canada, Ireland, and the UK – the survey found that security risks are the number one concern, an issue for 26 per cent of Kiwi businesses.
“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,” says David Price, CEO at Peninsula and Bright HR Australia and New Zealand.
“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.”
Ai’s full integration into the industry is a gradual process. Issues like high initial costs, data quality issues, skill gaps, cultural resistance, and regulatory challenges hinder the complete adoption of AI.
Reputational impacts, the risks of breaking laws, the loss of intellectual property, and the impact on work quality and productivity were other considerations for businesses, which all saw a year-on-year increase compared to the last survey.
Australians and New Zealanders were more likely to use AI than small- and medium-sized businesses in Britain and Canada.
The risk of losing intellectual property and an increased margin of error tied in second place are key worries for Australian respondents. However, 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.
The use of AI remains low across small and medium businesses around the world. Despite a 50 percent year-on-year increase, only 1 in 10 SMEs say they regularly use AI in their workplace.
The survey found the most popular use of AI for small businesses in both Australia and New Zealand was for administrative tasks.
Specific uses include creating meeting agendas, summarising documents or resources, and drafting emails or communications.
53 percent of New Zealanders agreed that people are irreplaceable within business. A quarter of Kiwis believe that AI will replace jobs at their company at some point in the future.
“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,” Price adds.
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.
“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.”
