Small businesses are aware of benefits of using AI, but don’t know where to start

According to a new poll from hiring platform Indeed, around a third of small businesses are scared to implement AI, despite acknowledging the many apparent benefits of doing so.  According to Indeed’s survey of 1,000 business leaders at British small businesses, 41 percent of small firms want to integrate the technology into their business, but don’t know where to start. This paralysis means that small businesses – which make up  over 99 percent of the nation’s total businesses – are missing out on improvements to costs, efficiency and overall work satisfaction that they themselves say it can bring about, the report argues.

Small business owners don’t want to risk any mishaps or interruptions in their business, which is intensifying their anxiety. 38 percent say that the success of the business comes down to them, so they can’t take a risk, while a similar number (39 percent) say that it’s better for them to stick to what they know, which excludes AI. 37 percent also say that the reputational impact of getting it wrong is just too much of a risk.

Employee opinion is another concern for small businesses – 33 percent find it difficult to encourage employees to use artificial intelligence at work and more than a quarter (26 percent) even say that they’ve had direct pushback from their team. Even when employees are onboard with using the technology, concerns remain, as 43 percent of small businesses worry that unauthorised use of AI by employees could hurt the business.

Size matters

Many small businesses feel that their scale means they’re at a disadvantage, with almost half (48 percent) saying they can’t compete with large businesses when it comes to using the tech and 41 percent also think allocating the necessary budget to bring tools on board is easier for large businesses.

Despite these worries, small businesses acknowledge there’s plenty of upside to successful AI implementation, that their fears may prevent them from reaping. In fact, half (49 percent) believe onboarding AI would help take their business to the next level.

Small businesses, who are often bogged down in day-to-day tasks and don’t have time to focus on long-term strategy, say the biggest benefit of onboarding AI is increased efficiency (49 percent) followed by a reduction in time-consuming, low-value work (44 percent). This in turn frees up small business owners to think bigger picture – with almost a third (30 percent) saying that AI will improve innovation and product development, and a similar number (29 percent) saying it will help decision making.

More than 2 in 5 (41 percent) cite cost savings as another potential benefit, showing that while small businesses feel they’re at a disadvantage cost-wise in bringing the technology onboard, in the long-run it could improve their financial position. In fact, almost 2 in 5 (38 percent) believe that AI could improve performance so much that it would lead to better benefits and financial incentives for their employees.

Small business owners also say that AI can make work more enjoyable for them and their team – 43 percent say that AI use will make work more meaningful, as AI will handle mundane tasks. 1 in 3 (35 percent) believe AI will provide a better work-life balance, and a similar amount (31 percent) say it will improve job satisfaction and happiness at work. A quarter (24 percent) even say that AI opens up the door to a four-day work week.

There are even some areas where small businesses feel they have the upper hand compared to larger businesses – 41 percent consider there to be more flexibility and freedom to integrate AI in small businesses. More than 2 in 5 (44 percent) also believe that using AI could level the playing field between small businesses and larger businesses.

To reap the benefits of AI, while avoiding many of the pitfalls of implementation that they fear, small businesses are keen to integrate AI tools that are less complicated, risky or costly. Easy-to-use AI products are paramount to small businesses (40 percent), while 29 percent say they’d like AI features within products or services that the business already uses.

Small business owners acknowledge that they could need outside help – 29 percent say AI integration consultations would be beneficial in their AI journey, while a quarter (26 percent) are keen on government grants and subsidies (26 percent).