Many SMBs are all-in on AI, despite not really knowing what it can do for them
The adoption of artificial intelligence among small and medium-sized businesses in Britain appears to have reached a crossroads. While enthusiasm for AI tools is high, understanding and strategic planning are lagging, new research shows.
A report from NetApp found that only half (51%) of IT decision makers surveyed understand how AI can benefit their operations, and only one in five (20%) have a good understanding of how to use artificial intelligence can utilize.
Despite the uncertainty surrounding implementation, budgets are expected to increase in 2024 as leaders view AI as critical to future success.
SMEs want AI, but don’t know why
About two in three (67%) ITDMs view AI as strategically important; However, concerns around implementation and delivery are increasing, with two in five (42%) claiming that their current AI adoption is unlikely to deliver a return on investment.
Worryingly, 15% of SME participants revealed that they had only adopted AI because they saw it as ‘jumping on a trend’.
Furthermore, it is clear that uncertainty about how companies can reap the benefits of AI is holding them back from investing, with only one in three ITDMS currently reporting that they have adopted AI tools.
Piero Gallucci, VP and GM for UK and Ireland at NetApp, emphasized the need for a more strategic approach to AI adoption:
“It is clear that many companies are running before they can walk to stay competitive. While our industry often has a fail-fast culture, companies need to approach AI more strategically. Bad decisions made now can have lasting consequences for long-term effectiveness.”
The UK’s head of artificial intelligence, machine learning and analytics, Kirsty Biddiscombe, added that AI is only as good as the data that powers it, urging businesses to consider improvements to their data infrastructure rather than focusing on shiny new AI tools.