- Data from a new report by the AI Chamber shows that 9 out of 10 companies in CEE are already using artificial intelligence and machine learning, with almost every fourth company using it to a significant extent. Almost 63% of surveyed SMEs see AI as support, while 15% see this technology as competition. Only 4% of SME employees are afraid of AI.
- According to the report, over 40% of companies anticipate positive financial effects resulting from the implementation of AI, such as increased revenues and reduced costs. Almost 2/3 of companies are convinced of the beneficial impact of AI and ML on their work. The most frequently indicated areas where AI/ML have a beneficial impact are: IT, marketing/creative creation and customer service.
- 50% of SME representatives are convinced that the competition is already ahead of their company in using new technologies. However, the availability of AI solutions is becoming more and more accessible – according to the announcements of the Ministry of Digital Affairs, the AI Fund is to be launched in 2025, to support 2 million SME champions.
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According to the authors of the report, artificial intelligence is no longer the domain of corporations alone, and the use of new technologies opens up the possibility for SMEs to introduce new business models based on data and algorithms. However, there are threats related to data security and privacy, which companies must prepare for by implementing appropriate security measures and ensuring compliance with regulations. In order to properly use advanced technologies, an appropriate level of employee competence is also necessary, which poses a challenge for companies related to providing appropriate training and staff development.
Using AI pays off for SMEs
According to the survey results, as many as 9 out of 10 small and medium-sized enterprises use artificial intelligence (AI) and machine learning (ML), with almost one in four companies using them to a significant extent. Over 40% of companies also anticipate positive financial effects resulting from the implementation of AI/ML, such as increased revenues and reduced costs. Half of the companies that use AI see the potential of this technology in building a competitive advantage. Almost 2/3 of companies are convinced of the beneficial impact of AI and ML on their work. The most frequently indicated areas where AI/ML have a positive impact are: IT, marketing/creation, customer service, administration, sales, logistics, production and quality control.
More than 50% of SMEs that use AI/ML also anticipate significant changes in their industry as a result of the rapid development of these technologies. The impact of AI is expected to include the introduction of new AI-based products, improved customer service through chatbots, automated processes, and error reduction.
– Today, artificial intelligence is a gamechanger, and not only in business. There is a need to understand how implementing AI-based solutions can help small and medium-sized companies, which play a key role in creating jobs, innovation, and strengthening local economies. Our study confirms that the galloping development of artificial intelligence is already clearly transforming the regional landscape of SMEs – emphasizes Tomasz Snażyk, president of AI Chamber.
AI as an ally of SME employees
The Chamber's report shows that almost 63% of surveyed SMEs perceive artificial intelligence and machine learning as support, 15% see this technology as competition, and only 4% express concerns about AI. Employees of companies who considered AI as a helpful technology most often indicated that AI supports them in their daily work or generally makes it easier to perform tasks. An example is the automation of business processes, which allows SMEs to optimize operations and focus on key tasks. Thanks to machine learning algorithms, companies can provide personalized services, which increases customer loyalty. In addition, data analysis using AI allows you to improve the quality of products and services and increase competitiveness by adapting faster to changes in the market. Advanced AI algorithms also help in prediction and planning, which allows companies to make better-considered business decisions. Additionally, data analysis using AI allows for a quick response to problems and improvements in production processes or service provision. Thanks to this, companies can achieve a significant reduction in operating costs and gain an advantage in a competitive market.
According to the report, SMEs most often use AI/ML for: sales prediction (56%), campaign targeting (55%), resource usage analysis (51%), dynamic pricing (51%), cross-selling analysis (48%), data analysis (36%), task automation (30%), risk management (23%), creating advertisements (23%) and social media graphics (21%), developing new products or services, detecting fraud and abuse (20%) and supporting business decision-making (19%).
SMEs mostly focus on in-house implementations, using their own human resources (38%). Fewer, 27% of companies decide to implement new technologies by external companies that will provide a ready-made solution or maintain it (24%). Consulting from external experts is used by 26% of respondents.
Size Matters – Larger SMEs Appreciate Innovation
According to the report, companies with a local or regional reach and smaller enterprises use AI and ML less often than those with a larger, international reach. The longer a company has been on the market, the more positive its attitude towards AI and the better its assessment of its impact on business: 51% are companies with less than 5 years of experience, 58% – companies with 5-10 years of experience on the market and 62% – companies existing on the market for more than 10 years.
The initiative does not come from the top
According to the AI Chamber report, in as many as 40% of all surveyed companies using AI, management actively supports the use of these technologies. In every fourth company using AI support, management does not impose the choice of tools on employees, and only in 11% of cases does it decide on specific solutions. Nevertheless, 41% of respondents believe that management hinders the development of AI/ML in their company. 48% of surveyed SMEs claim that their company prefers traditional work methods and is resistant to introducing new AI solutions.
SMEs face AI development barriers
Barriers to AI development indicated by SME employees mainly include lack of trust in new technology, employee reluctance and their age. In addition, high implementation costs and limited staff knowledge are also serious challenges. Lack of qualified staff or understanding of the potential benefits that AI implementation in the company can bring and concerns about privacy and data security are also significant factors limiting companies in using this technology.
About 40% of surveyed companies that have not yet implemented AI do not plan to do so in the near future. The main reasons are lack of knowledge or experience in this area, other priorities in the company, lack of demand, and lack of adequate human resources to manage and maintain AI/ML-based systems.
The future of AI in SMEs looks optimistic
According to the report, the last two years have been crucial for the development of AI in SMEs – it was then that almost 60% of small and medium-sized enterprises began to use the groundbreaking technology. At the same time, although innovations are not foreign to them, 50% of SME representatives are convinced that the competition is already ahead of their company in the use of AI/ML technology.
However, the availability of AI solutions is becoming increasingly accessible to SMEs. More and more platforms and tools tailored to the specific needs of smaller companies are appearing on the market, offering them easy access to the potential of artificial intelligence without the need for extensive IT resources. The Polish government also has plans to support AI technology in SMEs – according to the announcements of the Ministry of Digital Affairs, the AI Fund is to be launched in 2025. According to experts from the ministry, the planned AI Fund will have several streams, one of which will be intended for the strategy of using AI in SMEs. The aim is to support 2 million champions in the form of small and medium-sized companies so that at least one million of them increase their productivity by 10-15%. The second stream is to concern implementations and innovations. The AI Fund is to elevate Polish companies to the position of global technology giants.
The AI Chamber 2024 report “The Role of AI in SMEs” is based on a survey conducted among 350 decision-makers (management staff and specialists who have an influence on decision-making in the company) working in small and medium-sized enterprises in Poland, the Czech Republic, Estonia, and Romania.