'It's clear that businesses are still unsure of the balance between risk and potential'
As high as the hype around generative artificial intelligence (GenAI) may be, employers seem to be losing interest in it – citing numerous concerns about the technology, according to a recent report.
Overall, one in three small- and medium-size employers believe AI has the potential to positively transform the workplace, while just one in 10 believe it will be highly detrimental, reports Peninsula.
Still, only 1 in 10 SMEs say they are regularly using AI in their workplace, and that’s despite a 50% year-on-year increase.
About two in three (65%) SMEs in Canada haven't incorporated AI into their workplace, according to Peninsula.
Interest in generative AI among executives appears to be waning, according to a previous report from Deloitte.
What are the concerns about AI?
Almost half of SMEs report concerns about the security risks posed by AI, a 60% year-on-year increase, according to Peninsula’s survey of 79,000 businesses across five countries – Australia, Canada, Ireland, New Zealand, and the UK.
Almost half of employers (47%) cite security risk as their biggest concern around AI in the workplace, up from 30% this time last year.
Since 2023, significant year on year increases were also seen in concerns around:
- reputational impact (+183%)
- risk of breaking the law (+183%)
- loss of intellectual property (+178%)
- impact on work quality and productivity (+158%).
"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,” says Peninsula Group COO Alan Price.
"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.”
While 60% of employers believe AI is significantly boosting productivity, only 44% of employees report experiencing a noticeable increase, according to a previous report.
How does AI affect employers?
Meanwhile, there has been a 6% decrease in the number of businesses believing that AI has the potential to transform many workplaces.
There has also been a 19% increase in the number saying AI is useful but won't overtake traditional ways of working.
Also, there has been a 21% increase in the number of employers saying they were fearful of the unknown when it comes to AI.
"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,” says Price.
"Overall, it appears small business owners believe that AI has potential to help businesses with certain things but that it will affect jobs, traditional ways, and values that make an engaged workforce. Whilst most are not opposed to using AI, they are looking for more clarity and assurance when it comes to security and quality of output."
There are also legal considerations when it comes to using AI for human resources work, according to a previous report.
