TLDR: A recent study by Irish digital growth consultancy LeanBPI highlights a significant shift in small business operations, with 61% of small enterprises now considering generative artificial intelligence (AI) as essential. The research, conducted among businesses with fewer than 20 employees, indicates that generative AI tools are enhancing efficiency, reducing the need for additional hires, and empowering smaller firms to compete more effectively with larger rivals.
A groundbreaking report from Irish digital growth consultancy LeanBPI reveals that a substantial majority of small enterprises, specifically 61%, now regard generative artificial intelligence (AI) as indispensable to their business operations. The findings, based on a comprehensive survey of small business owners employing fewer than 20 individuals, underscore the transformative impact of AI technologies such as chatbots and text-to-image models across the small business landscape.
The study highlights several key benefits driving this widespread adoption. A remarkable 67% of respondents reported that generative AI is significantly improving their operational efficiency. Furthermore, 60% indicated that these AI tools are easing the pressure to hire additional staff, a critical advantage for resource-constrained small businesses. The positive impact extends to workload management, with 70% of small enterprise owners noting that generative AI lightens the burden for them and their teams. Crucially, three-quarters (75%) of those surveyed believe that generative AI is instrumental in leveling the playing field, enabling them to compete more effectively with larger organizations.
Despite the growing recognition of AI’s importance, the overall deployment of AI within small businesses is not yet universal. While 62% of small businesses are actively using AI chatbots like ChatGPT and Gemini on a daily basis, 14% are not utilizing them at all, and 13% perceive them as irrelevant to their specific business needs. The report also found that less than half (41%) of respondents are currently using AI to automate tasks, and a notable 47% still believe that AI is better suited for larger enterprises.
Several barriers hinder broader AI adoption among small businesses. Trust emerged as a significant concern for 44% of owners, while 30% cited cost as a prohibitive factor, feeling priced out of deploying essential AI tools.
The research, conducted by Censuswide on behalf of LeanBPI, coincides with the launch of the consultancy’s Digital Recovery Plan. This new initiative is specifically designed to assist small enterprises that have previously encountered difficulties with digital adoption, offering diagnostics of existing digital systems and bespoke recovery programs.
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John O’Shanahan, managing director of LeanBPI, commented on the findings: “With extensive experience working with small businesses, particularly in partnership with the country’s Local Enterprise Offices, we have seen first-hand that digital is too important to just have one stab at it. As our research at LeanBPI shows, generative AI is now an essential tool for small enterprises. It enables tangible benefits that don’t just level the playing field but even provide the competitive edge to thrive against larger organisations. Failing once is not a sign that a business should give up entirely; navigating new technology is complex and time-consuming.” This statement emphasizes the critical role of generative AI in fostering competitiveness and resilience within the small business sector.
