Just 18% of small firms reported they use artificial intelligence (AI) in some or most of their business processes, while more than half have not adopted the technology at all, according to a survey published by Ireland’s Small Firms Association (SFA).
Adoption remains limited and uneven across sectors
The SFA surveyed 404 companies it classifies as small businesses (those employing fewer than 50 people). The findings show a divided picture: only a minority are using AI, a small share plan to explore it soon, and a large cohort has yet to start any investigation.
- 18% use AI for most or some business activities.
- 31% have not started or looked into AI — an increase of 11 percentage points on the prior year.
- 11% plan to look into AI in the next six months.
- 4% say they have no plans to use AI at all.
The SFA highlighted that uptake is concentrated in financial and professional services, where 51% of firms reported some use. By contrast, retail, hospitality and manufacturing trail behind.
Skills, time and money are the main constraints
Among firms not using AI, the SFA identified several barriers:
- 31% cited a lack of technical expertise.
- 28% pointed to insufficient time to investigate AI options.
- 17% said lack of finances prevented adoption.
These constraints suggest many small businesses face practical hurdles beyond awareness — they lack the in-house capability, staff capacity or budget to move from curiosity to deployment.
"Research shows that barriers remain to adopting AI," the SFA said. "For those who do actively use customised or strategic AI, the rewards are undeniable."
Most users rely on generic tools; few build bespoke systems
Of the small minority that do use AI, the vast majority depend on off‑the‑shelf services. The SFA reported that 92% of AI users rely on generic models and tools such as ChatGPT, Microsoft Copilot and Google Translate. Only 30% said they customise existing models for their needs and a mere 7% have developed their own AI tools.
| Metric | Share |
|---|---|
| Survey sample | 404 small firms |
| Use AI (some/most) | 18% |
| Have not investigated AI | 31% |
| Rely on generic AI tools | 92% of AI users |
The SFA noted that where small firms have tailored or strategically adopted AI, measurable benefits follow: 76% reported higher efficiency and 55% said AI improved decision‑making. A small share — 8% — said it was too early to judge the effects.
Why this matters for business and jobs
Though the survey is of Irish firms, the patterns are familiar to many markets: smaller companies frequently lack the specialised skills and spare hours to evaluate new technologies, and they often prioritise immediate cashflow needs over investment in long‑term productivity tools. That leaves a middle ground where off‑the‑shelf AI is used for routine tasks, but deeper, strategic adoption is rare.
For policy‑makers and business support organisations, the results underline two priorities. First, targeted skills and advisory support can help firms move beyond generic tools towards customisation that brings stronger productivity gains. Second, measures that reduce the time and cost of experimentation — from subsidised pilots to shared technical resources — can lower the threshold for small firms to trial AI safely.
For households and workers, the SFA’s numbers indicate that immediate disruption to jobs in the small‑business sector is unlikely while adoption remains limited. But the benefits reported by active users — faster processes and better decisions — suggest a potential productivity dividend if barriers are addressed.
The SFA’s survey does not prescribe policy, and it does not report on specific technologies beyond naming common generative tools. It does, however, offer a clear snapshot: many small firms are still at the start line when it comes to AI, and closing the gap between basic use and strategic adoption will require practical interventions aimed at skills, time and cost.
WE NEWS does not provide financial advice.
