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Artificial intelligenceAustraliaLatest NewsIrelandHR Technology

One-third of SMEs think AI can positively transform workplaces

by Kavitha Sivasubramaniam 10 Sep 2024
by Kavitha Sivasubramaniam 10 Sep 2024 Fewer than half of respondents thought people would become irreplacable because of AI
Shutterstock
Fewer than half of respondents thought people would become irreplacable because of AI
Shutterstock

One in three small and medium-sized companies believe artificial intelligence could positively transform workplaces, according to a global study.

The survey by consultancy firm the Peninsula Group also found that one in 10 SME employers think AI will be highly detrimental.

Now in its second year, the research polled 79,000 organisations in five countries – the UK, Australia, Canada, Ireland, New Zealand – to explore employers’ views on the opportunities and concerns around AI in workplaces.

Despite revealing a 50% annual increase, AI usage is still low in SMEs, with only one in 10 regularly using it. Employers in Australia and New Zealand are the most likely to use AI regularly, while those in Ireland are the least likely.

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While use on AI rises, nearly half of those polled highlighted concerns about the related security, showing an increase of 60% year-on-year. Almost half said security risks were their biggest concern around AI usage at work, up from 30% who said the same last year.

Compared to 2023 findings, concerns had also increased around reputational impact (up 183%), risk of breaking the law ( up 183%), loss of intellectual property (up 178%) and impact on work quality and productivity ( up 158%).

Meanwhile, the number of organisations thinking that AI could transform many workplaces dropped by 6%, while the survey found a 19% rise in employers claiming that while AI is useful, it won’t surpass traditional working methods.

The survey also showed a 21% rise in businesses fearful of the unknown in terms of AI. Among those that had introduced it, most had done so for administrative tasks or creative writing.

Additionally, a quarter were concerned about potentially losing intellectual property (IP) because of AI, compared to just one in 20 in 2023.

Peninsula Group chief operations officer Alan Price said: “AI continues to dominate the headlines, but it’s clear that businesses are still unsure of the balance between risk and potential. As usage increases, so do the concerns. This shows that there is still considerable work to be done to reassure SMEs around the world.

“While many can see the benefits of AI, there are still significant concerns around security, productivity, and intellectual property that need to be addressed before we will see widespread implementation across businesses. With online security and data protection being a top priority for most employers, this is not a big surprise.”

The survey further found that less than half of SMEs believe people are irreplaceable at their workplaces while one in four think AI is likely to reduce the headcount at their company at some stage.

For the second consecutive year running, Canadians were appeared to be the most cautious, with under a quarter (23%) thinking AI could positively transform the workplace. More than half (53%) are either fearful of the unknown, unsure about negative elements or think AI will be highly detrimental at work.

In the UK, two in five (40%) worry about the margin of error AI brings, up from 14% this time last year, while one in five SMEs using AI believe it has had a positive effect.

Price added: “All employers are looking for ways to speed up processes, improve productivity and, ultimately, increase profits. With costs continuing to rise globally, it’s not surprising to see one in four small business owners believe that AI will probably reduce the number of people they employ at some point.

“Some of the concerns expressed by respondents around premature integration, lack of safeguards, and AI only being as good as the person programming it are all valid points that need to be addressed. As does unconscious bias in the technology. Several respondents stated they feel AI is ‘racist’, ‘sexist’ and ‘prone to manipulation’, citing concerns around deep fakes and growth in the use of AI to impersonate people or commit fraud.”

Price highlighted that in general it appears small business owners believe that AI has potential to help businesses in some capacity, but that it will affect jobs, traditional ways and values that make an engaged workforce.

He said: “While most are not opposed to using AI, they are looking for more clarity and assurance when it comes to security and quality of output.”

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Kavitha Sivasubramaniam

Kavitha Sivasubramaniam is an experienced journalist, editor and communications professional who has been working in B2B publishing for more than 17 years. After graduating from Bournemouth University with a degree in Multi Media Journalism, Kavitha started her career in local and regional newspapers, before moving to consumer magazines and later trade titles, as well as PR. Specialising in pay and reward, she has been editor of a number of HR publications including Pay & Benefits, Employee Benefits, Benefits Expert, Reward and CIPP’s membership magazine, Professional. In June 2024, she won Pay, Reward and Employee Benefits Journalist of the Year at the Willis Towers Watson media awards. She was also named one of Each Person’s top 20 influential HR bloggers and managed a highly commended content team of the year in 2019.

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