More than a third of Irish small and medium sized businesses have already adopted artificial intelligence, as it becomes an increasingly important tool for business success, a new study has claimed.
The research from Eir Evo found that almost half of companies were planning to implement the new technology, with AI proving particularly popular among customer service businesses. The study, which was supported by Microsoft Ireland, surveyed 400 small and medium sized companies across the country.
But a lack of understanding of the technology, investment levels and security concerns are all holding back the adoption of AI, the survey found, despite the benefits companies expected to see from the new technology, such significant efficiencies in time and ultimately money that could be invested elsewhere in the business.
Almost a third said AI could cut up to four hours a week from administrative tasks, with a further 23 per cent believing administrative work could be reduced by more than six hours a week, redirecting spending of up to €5.1 billion.
“Our research demonstrates a clear link between the adoption of advanced technologies, such as cloud-based services and AI, and improved business performance among Irish SMEs. It’s encouraging to see that many businesses are embracing supportive technologies, but there are still barriers to overcome, particularly around investment and knowledge,” said Martin Wells, Managing Director at eir evo. “The study sheds light on the vital role AI and technology integration play in the success of SMEs, offering valuable insights for businesses looking to strengthen their digital strategies, and business performance, in the years to come.”
Another barrier to implementing new technologies was a lack of digital skills among staff, the survey found, with 24 per cent of companies saying their employees lacked the necessary digital skills to support future growth. That was higher in rural areas, where 64 per cent said they felt staff lacked digital capabilities. That indicated a demand for further skills training to help support staff.
Cybersecurity is an ongoing issue too. Almost one in five companies said they had experienced a cyber attack of some kind in the past year, and almost half said they felt unprepared for the threat.
“Digital transformation is reshaping industries, making AI and cloud services essential for SMEs to stay competitive,” said Jonathan Eustace, Small Midmarket and Corporate Lead at Microsoft Ireland. “Eir evo’s research highlights how technology can drive efficiencies and enhance business operations and security. However, almost half of organisations feel unprepared for potential cyber attacks. With the rising cyber threat landscape, prioritising cybersecurity is crucial.”
- Sign up for the Business Today newsletter and get the latest business news and commentary in your inbox every weekday morning
- Opt in to Business push alerts and have the best news, analysis and comment delivered directly to your phone
- Join The Irish Times on WhatsApp and stay up to date
- Our Inside Business podcast is published weekly – Find the latest episode here
