AI usage in SMEs is up by 50% around the world

Despite a 50% year-on-year increase, only 1 in 10 SMEs say they regularly use AI in their workplace. 

That’s according to a Peninsula Group survey conducted in August 2024 across Australia, New Zealand, Canada, Ireland, and the UK on the perceptions and impacts of AI usage in the workplace.

The survey found that the number one concern around AI is security risks (24% in AU, 26% in NZ) and half of the SMEs in ANZ hadn’t incorporated AI into their operations at the time of the survey.

Interestingly, this response is mirrored in global results with almost half of the employers surveyed (47%) citing security as their biggest concern. This figure is up from 30% this time last year.

David Price, CEO at BrightHR ANZ says, “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. 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.”

“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.”

On top of security issues, a few more concerns have seen a steep year-on-year increase:

• Concern about reputational impact is up by 183%
• Concern about breaking the law also up by 183%
• Concern over the loss of intellectual property went up by 178%
  
• Concern about the impact on work quality and productivity up by 158%

But even while accounting for these concerns, it’s important to note that Australian and New Zealand participants are more likely to use AI regularly compared to their SME counterparts in Canada, Ireland, and the UK.

What are small businesses leveraging AI for?

The most popular use of AI for small businesses in both Australia and New Zealand was for administrative tasks, at 18% and 19%, respectively. Specific uses include creating meeting agendas, summarising documents or resources, and drafting emails or communications.

And if you’re an employee worried about being replaced by AI, you can breathe a sigh of relief because around half of ANZ survey respondents (47% in Australia and 53% in New Zealand) say people are irreplaceable in their business. But 22% of respondents in the region believe AI will replace jobs at their company at some point.

AI has enormous potential to speed up processes, boost productivity, and decrease overheads for small and medium-sized businesses in Australia and New Zealand. But how it can be safely leveraged is still a big question mark for these businesses.

One of the ways businesses can get the answers they need is via Bright BrAInbox, our question-and-answer platform enriched by AI, but backed by experienced employment relations advisers, so you can depend on the answers you receive.

Ask Bright BrAInbox:

Can I have a policy regulating the use of AI within the workplace?

Such a policy could form part of your company IT policies and could set out the circumstances where using AI is permitted, what information can be provided in prompts and the specific tasks it is to be used for. As these policies are highly individual to your business needs, please contact an adviser to discuss this further.

Can I discipline an employee for using AI after directing them not to?

Yes, you can discipline an employee for failing to follow a reasonable management direction. However, there are multiple factors to be considered such as how the direction was given, whether the employee was aware of the direction and when the use occurred. As this matter can be complex, please contact one of our skilled advisors to discuss this matter further.