David Broderick
Director, Small Firms Association
Learn how small businesses are embracing AI to boost productivity, cut costs and automate operations despite staffing and scaling challenges.
Commerce has evolved over the centuries, but it has been guided by notable technological turning points. Gutenberg’s printing press revolutionised communication in the mid-15th century. Electricity powered new machinery, leading to the rise of mass production.
Digitalisation saves time
As the millennium dawned, ecommerce platforms opened new revenue streams through online sales. AI can outstrip all these advancements, and it has the potential to do so within the next 12 months.
Many small businesses are facing AI and accelerated digitisation. The obvious benefits of using AI tools are streamlining operations, improving customer experiences and automating routine tasks such as scheduling and inventory management. Crucially, for small business owners who tend to be quite time poor, AI adoption can free up valuable time.
Recent research on small firms and AI
Research from the Small Firms Association (SFA), recently conducted by Amárach, shows that nine out of 10 firms are using AI for one or more business processes. The most popular uses for AI are for automation of simple tasks and data analytics reporting.
Of those using AI, two-thirds of respondents said they use AI for sales and marketing functions, with the second most popular use being data analytics at 44%. When non-users were asked about the barriers, the most common reason, at 30%, was the lack of staff and IT resources.
Three out of 10 firms expect AI to
have a significant impact on their
business in the next five years.
Sentiment for AI tools
The sentiment around adopting AI tools is more positive than negative, particularly among providers of financial and professional services. The same research found that 28% of business owners say that they are enthusiastic, while 39% are either curious or interested.
AI can boost business resilience
Looking into the future, the survey found that three out of 10 firms expect AI to have a significant impact on their business in the next five years. At a time when small businesses need to cope with rising labour costs, high energy bills and compliance costs amid economic uncertainty, the adoption of AI has immeasurable potential to enhance productivity, cut costs, improve efficiency and create more expansion opportunities.
