IT services firm eir evo says new research it has conducted highlights the strong connection between AI adoption, technological integration, and business success among small and medium-sized enterprises.
Its study, supported by Microsoft Ireland, surveyed 400 SME companies across the country, and revealed key insights into how advanced technologies like AI are transforming businesses.
It found that 35% of SMEs have already adopted AI with an additional 48% planning to implement it within the next 12 months. Key areas where AI is expected to make an impact include customer service (32%), IT (27%) and sales (14%).
The biggest barriers to AI adoption for SMEs are a lack of understanding (26%), lack of investment (23%), and concerns over security (20%), which prevent wider adoption despite the clear benefits.
According to the research, AI is seen as a major time-saving tool for SMEs with 32% of respondents saying that AI could reduce administrative tasks by 3-4 hours a week, with an average saving of 3.8 hours a week anticipated across the board.
Meanwhile, a further 23% estimate that AI could cut over six hours of administrative work each week, enabling businesses to focus on higher-value activities. This time-saving benefit could redirect up to €5.1 billion per year into alternative business areas, eir evo added.
Cybersecurity remains a critical area of concern, with 17% of businesses having experienced a cyber-attack in the past year.
But despite this, 51% of respondents feel somewhat or highly prepared to manage cybersecurity threats, while 49% feel underprepared or very underprepared.
Of those that experienced an attack, 16% lost between €5,000- €20,000, with 2% losing over €20,000, today's research shows.
Martin Wells, Managing Director at eir evo, said the research demonstrates a clear link between the adoption of advanced technologies, such as cloud-based services and AI, and improved business performance among Irish SMEs.
"It's encouraging to see that many businesses are embracing supportive technologies, but there are still barriers to overcome, particularly around investment and knowledge," Mr Wells said.
"The study sheds light on the vital role AI and technology integration play in the success of SMEs, offering valuable insights for businesses looking to strengthen their digital strategies, and business performance, in the years to come," he added.
Jonathan Eustace, Small Midmarket and Corporate Lead at Microsoft Ireland, said that digital transformation is reshaping industries, making AI and cloud services essential for SMEs to stay competitive.
"Eir evo's research highlights how technology can drive efficiencies and enhance business operations and security. However, almost half of organisations feel unprepared for potential cyber attacks. With the rising cyber threat landscape, prioritising cybersecurity is crucial," he added.
David Broderick, Director of the Small Firms Association, said that while many SMEs are progressing in adopting new technologies, there is still a critical need to develop digital skills within the workforce.
"To unlock the full potential of these innovations and drive sustained growth, employees must have the right capabilities. Irish SMEs have shown remarkable adaptability, and with continued investment in skilling, they are well-positioned to thrive in an increasingly digital economy," Mr Broderick said.
"This research highlights the ongoing need for digital training to ensure SMEs remain competitive and resilient in today's fast-changing landscape," he added.
