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Almost one in four SMEs have already invested in emerging technology solutions, while a further 20 per cent plan to in the future, according to a NAB report.
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A quarter of SMEs investing in AI, automation, NAB data reveals
20 March 2024
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Many Australian SMEs are already actively investing time or money in emerging technology solutions such as artificial intelligence, machine learning and other forms or automation to help their businesses run, according to a NAB SME Business Insights report.
Almost one in four or 23 per cent of SMEs have already invested, while a further 1 in 5 (20 per cent) have not yet done so but are planning to.
However, almost 1 in 2 or 49 per cent have not invested and are unlikely to do so, and just under 1 in 10 (8 per cent) are unsure about whether to invest in these technologies.
Investment was most prolific in South Australia and Western Australia where 3 in 10 (30 per cent) have invested, and least so in NSW (21 per cent) and VIC (20 per cent).
SMEs consider the main benefits of AI technology solutions to be productivity increases and reduction in administrative tasks.
Around 40 per cent said they believe AI will make their business more profitable while around a third think it will reduce the need to employ staff.
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“Most SMEs in all sectors believe the main benefits of emerging technology solutions businesses will come from productivity gains, except Manufacturing and Construction where most think they will benefit from reduced administrative task,” the report stated.
“The survey also found a much higher number signalling gains from productivity increases in Finance & Insurance (82%), Business Services (78%) and Health Services (72 per cent), particularly when compared to Construction (47 per cent).”
Most SMEs in all sectors believe the main benefits of emerging technology solutions businesses will come from productivity gains, except Manufacturing and Construction where most think they will benefit from reduced administrative tasks. The survey also found a much higher number signalling gains from productivity increases in Finance & Insurance (82 per cent), Business Services (78 per cent) and Health Services (72 per cent), particularly when compared to Construction (47 per cent).
The main barrier according to around half of SMEs overall is the need for training.
“A third lack time (36 per cent), don’t understand the technology (35 per cent) or find cost (32 per cent) were problematic,” the report said.
“Around 3 in 10 (28 per cent) SMEs simply did not know how to start. Very few - only 7 per cent - saw no barriers to using emerging technologies.”
Awareness or understanding of AI and how it can potentially help business is widespread among Australian SMEs - though the level of understanding or awareness varies considerably.
“Encouragingly, almost 3 in 10 (28 per cent) SMEs overall said they understand the concept of AI and how it could potentially assist businesses in the future. In addition, a further 15 per cent indicated they have a clear understanding of AI and are keen to explore its possibilities,” the report said.
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