SMEs see artificial intelligence potential but ‘fail to capitalise on new tech’

DCM Editorial Summary: This story has been independently rewritten and summarised for DCM readers to highlight key developments relevant to the region. Original reporting by Irish Times, click this post to read the original article.

The majority of small and medium-sized businesses (SMEs) believe artificial intelligence (AI) can transform their business for the better, but a fear of making mistakes and a lack of skills are hampering adoption, notes fresh research.

The study, which was carried out for Google, found a third of microbusinesses – under 10 employees – were not using any AI tools, compared to 7 per cent of SMEs with 50 to 250 employees, and 20 per cent of all small businesses are not using AI for business tasks yet.

That was more common among companies in business for more than 16 years, with only 11 per cent of those in business less than five years failing to utilise the new technology.

The research, which questioned 400 businesses, highlighted the gap between knowledge and action on AI. Thirty per cent of companies said a fear of making mistakes was behind their reluctance to adopt AI, while 27 per cent said a lack of skills was an obstacle. Cost was also a factor, with 24 per cent of businesses citing it.

More than half of businesses said they felt they were behind competitors in adopting AI, with microbusinesses, longer-established firms and non-exporters most at risk.

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Google has also partnered with the Local Enterprise Office network to launch AI Works for Ireland, a series of regional events to equip SMEs with AI skills.

The events will take place in Galway, Cork and Monaghan in the coming weeks. As part of the venture, up to 10,000 AI scholarships will be on offer, giving workers across the country practical training in real-world AI use cases.

“Irish SMEs are clear about the opportunity AI presents, but this research shows many are being held back by uncertainty rather than ambition,” said Vanessa Hartley, head of Google Ireland.

“AI Works for Ireland is about closing that gap – providing practical, trusted support that helps businesses move from awareness to action, and from experimentation to real impact.”

The initiative was also welcomed by Minister of State for Digital Transformation Niamh Smyth.