New report highlights hesitance among employers in introducing AI
Half of small and mid-sized enterprises (SMEs) in Australia and New Zealand have yet to incorporate artificial intelligence into their operations in the wake of security concerns surrounding the technology, according to a new report.
The report, conducted by Peninsula Group in August 2024, found that around a quarter of SMEs in Australia (24%) and New Zealand (26%) see security risks as their number one concern regarding AI.
These security concerns come in the wake of high-profile breaches in organisations, said David Price, CEO at Peninsula ANZ and BrightHR ANZ.
"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," Price said in a statement.
Other major concerns about AI in Australia include the risk of losing intellectual property, while work quality and/or productivity is a key concern in New Zealand.
The findings come as SMEs in ANZ are "more likely to use AI regularly" compared to respondents in Canada, Ireland, and the United Kingdom, according to the report.
It found that the most popular use of AI for ANZ small businesses is for administrative tasks, including creating meeting agendas, summarising documents or resources, and drafting emails or communications.
"It's clear that while small businesses are slowly dipping their feet in the water when it comes to adopting AI, their concerns about the risks it carries are stopping them from diving straight in and widely implementing new technologies," Price said.
Despite the growing implementation of AI, however, SMEs in ANZ believe that the technology will not replace their workforce for now.
According to the report, 47% of Australian and 53% of New Zealand respondents have assured employees that they are irreplaceable in their business.
The report noted, however, that 22% of employers in ANZ believe that AI will replace jobs in their organisation in the future.
"As the cost of doing business rises in 2024, employers are understandably assessing where they can decrease overheads, speed up processes, boost productivity, and ultimately, boost profits," Price said.
"So, it's no surprise to see SME business owners and employers voice the prediction that some positions will become redundant as AI is increasingly adopted."
Peninsula Group's report surveyed SMEs in Australia, New Zealand, Canada, Ireland, and the UK. In ANZ, a total of 484 respondents were polled for the report.
