AI adoption in SMEs is a catalyst for growth
Efficiency, and enhanced customer experience, driven by increasing investments in diverse AI applications and requiring a strong focus on modernized IT infrastructure, security, and ethical considerations.
In the rapidly evolving landscape of digital technology, Artificial Intelligence (AI) is no longer the exclusive domain of large enterprises. A recent survey commissioned by Schneider Electric reveals a booming adoption of AI across small and medium-sized businesses (SMEs), driven by the desire to drive growth, enhance customer experience, and cut costs.
According to the survey, nearly one in two SMEs are preparing to make substantial investments in AI over the next five years. Specifically, 48% of businesses indicated a company-wide adoption of AI, while 45% preferred a more gradual, project-by-project integration approach.
“These findings paint a clear picture: AI is no longer just for big businesses, and organisations of all sizes and sectors are looking to leverage the technology to meet their growth, efficiency, and customer satisfaction targets,” said Joe Craparotta, Vice President of Schneider’s Secure Power division.
This shift is not surprising as AI’s presence is already embedded in many platforms that businesses use today. The challenge and opportunity now lie in fully unlocking AI’s capabilities to improve business outcomes further.
The survey, which included 500 respondents, also highlighted a notable increase in IT budgets year-on-year for two-thirds of businesses. Of these, around half plan to implement AI by purchasing off-the-shelf solutions tailored to their specific needs. Conversely, only 16% intended to build their AI tools, predominantly among larger enterprises.
The primary motivations for adopting AI are achieving growth, enhancing customer experience, and managing costs. The most common forms of AI being deployed include:
1. Generative AI (63%)
2. Application Embedded AI (39%)
3. Quality Control
4. Visual Inspection
5. Robotic Process Automation (RPA)
These technologies are being applied across various industries to streamline operations, enhance decision-making, and improve overall efficiency.
Addressing Security and Data Integrity Concerns
Despite the promising potential of AI, the survey identifies security and data integrity as significant hurdles, with 42% of respondents expressing concerns. Such scepticism is warranted; however, the survey emphasizes that there are already real use cases demonstrating significant results. Businesses that delay integrating AI risk falling behind their more proactive competitors.
To ensure successful AI adoption, the survey recommends that businesses and IT leaders:
1. Modernize IT Infrastructure: Assess and upgrade existing IT infrastructure to handle the increased demands of AI. This includes ensuring data storage centers are capable of managing the additional strain.
2. Ethical and Security Considerations: Approach AI projects with a strong focus on ethical, environmental, and security concerns. Strong leadership in these areas is crucial to achieve optimal AI outcomes.
“This isn’t ‘hype’. It is just the observable and provable reality… these are developments that business and IT leaders should not be ignoring,” the survey stated.
The future of AI in business is not just a trend but a transformative reality. SMEs that embrace AI stand to gain a competitive edge through improved efficiency, superior customer experiences, and cost savings. However, this journey requires careful planning, robust IT infrastructure, and stringent attention to security and ethical considerations.
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For more insights and personalised consulting on AI adoption and digital transformation, contact us today. Let’s build a smarter, more efficient future together.
