Small businesses are widely using artificial intelligence tools, but their adoption of more advanced systems remains limited, according to a new survey.
Research commissioned by the Small Firms Association (SFA) and conducted by Amárach Research found that most of the 404 companies surveyed were using AI in some form. However, the majority relied on ready-made tools rather than systems developed specifically for their businesses.
Some 92% of firms said they were using off-the-shelf AI models, including products such as OpenAI’s ChatGPT and Microsoft’s Copilot. By comparison, only 30% said they were using customised AI models designed around their individual business needs.
The proportion using tailored systems has increased from 22% last year, suggesting that more small firms are beginning to move beyond basic AI applications.
Businesses that had adopted customised systems reported a range of benefits. Almost two-thirds said the technology had improved business efficiency, while close to half reported faster service delivery to customers.
However, many companies that had not adopted tailored AI said they faced practical barriers. Nearly one-third said they lacked the technical expertise needed to develop or introduce such systems.
A further 28% said they did not have enough time to investigate how the technology could be used effectively. Financial constraints were also an issue, with 17% of firms identifying a lack of funding as a barrier.
The SFA has called on the Government to make greater use of existing funding and training programmes, including resources available through the National Training Fund, to help smaller companies develop their AI capabilities.
SFA director David Broderick said small businesses were already facing rising operating costs and needed support to make effective use of new technology.
“AI has the unmatched potential to dramatically boost productivity and lower overheads,” he said, while pointing to shortages of time, technical staff and funding among small businesses.
Broderick said smaller companies would need assistance if they were to compete with larger corporations that have greater resources to invest in technology.
The survey highlights a gap between widespread access to AI tools and deeper business adoption. While most firms can now use commercially available applications, far fewer have moved towards customised systems that could be integrated more closely with their operations.
The SFA said targeted training and financial support could help close that gap and allow more small businesses to use AI for productivity, customer service and other areas of their operations.
