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SMBs Face Challenges Adopting AI, Automation, and More

Concept of stress with businessman sleeping on a laptop

Nearly half of all SMBs lack a full-time IT employee and most of those with in-house IT only have a small team. As such, they face hurdles in adopting and maintaining advanced technologies like automation and AI.

Written By

Elizabeth Wallace

Jan 2, 2024

Small and medium businesses (SMBs) are embracing AI and automation just like their enterprise counterparts due to the benefits these technologies can deliver. However, unlike larger businesses, many SMBs have significant gaps in technical expertise that impact their operations, according to a recent IDC study.

Specifically, the study found that nearly half of all SMBs lack a full-time IT employee and most of those with in-house IT only have a small team. As such, they face hurdles in adopting and maintaining advanced technologies like artificial intelligence.

To those points, a staggering 49% of all U.S. SMBs operate without a single full-time IT employee. This deficiency in technical expertise is a barrier for SMBs as they grapple with outdated systems and encounter challenges in integrating new technologies. The reliance on external vendors for IT support incurs additional costs and hinders the swift adoption of cutting-edge technologies, including artificial intelligence (AI).

AI adoption slowed by lack of IT personnel

The absence of dedicated IT staff appears to be a significant factor contributing to the fact that 35% of small businesses are not leveraging AI. For those SMBs that do incorporate AI, the focus is primarily on using it within IT to manage various technologies deployed in the business. This includes leveraging data from software applications and automating processes within business applications. This trend highlights the role of AI in streamlining internal processes and improving overall efficiency.

Process automation has taken center stage

Process automation has emerged as the top technology area for U.S. SMBs in 2023. Robotic process automation and process mining are key components of this forward-looking approach. SMBs recognize that automation can significantly enhance operational efficiency and accuracy while minimizing costs. This strategic focus aligns with the broader industry trend towards leveraging technology for improved business processes.

How SMBs are embracing AI and other new technologies

As AI technologies like ChatGPT gain prominence, U.S. SMBs are increasingly turning to chatbots for customer assistance and digital assistants to streamline task management. Beyond customer interaction, SMBs aim to enhance process automation for data extraction and business applications, enabling the automation of repetitive tasks. This shift allows employees to redirect their efforts towards more strategic and creative endeavors, contributing to overall business innovation.

Elizabeth Wallace

Elizabeth Wallace is a Nashville-based freelance writer with a soft spot for data science and AI and a background in linguistics. She spent 13 years teaching language in higher ed and now helps startups and other organizations explain - clearly - what it is they do.