A recent survey conducted by BGF among business leaders from its 400-company investment portfolio reveals a strong trend of AI adoption among small and medium-sized enterprises (SMEs). The findings indicate that 89% of respondents view AI as a growth opportunity, with only 7% perceiving it as a risk.
Key insights from the survey show that 64% of SME leaders consider AI a major opportunity, while 25% see it as a potential advantage. Additionally, one-third of the companies have allocated budgets for AI, and nearly 40% plan to do so within the next year. Over half of the respondents reported having the necessary AI skills within their teams, and 25% are currently utilizing generative AI in their operations.
Simon Steward, BGF’s head of digital, highlighted the importance of AI for maintaining competitiveness among SMEs. He expressed confidence in SMEs' readiness to adopt AI tools, which are designed for easy integration into existing systems. This adaptability is attributed to the innovative mindset prevalent in many SMEs.
AI applications are primarily focused on customer service, data analytics, and content creation. SMEs are increasingly using chatbots and virtual assistants to automate processes, enhancing operational efficiency and competitiveness. AI is also being employed in areas such as marketing and data analysis, as well as in functions previously outsourced, like training and recruitment.
Case studies illustrate successful AI integration. Panthera BioPartners, a clinical trials company, is leveraging AI to streamline patient recruitment and improve trial accuracy. CEO Stuart Young emphasized the transformative potential of generative AI in their operations. Similarly, Medigold Health has launched ‘Paradigm,’ an AI-driven module that optimizes medical reporting and clinician workflows, resulting in a 58% increase in clinician retention and improved job satisfaction.
Despite the enthusiasm, 25% of SMEs remain cautious about investing in AI due to competing priorities and uncertainties. Concerns include the potential for increased competition as AI lowers market entry barriers and fears of cyber threats and data breaches. The rapid evolution of AI technology and associated costs for data governance and upskilling also contribute to this caution.
The survey included responses from 84 SMEs funded by BGF, which has invested approximately $5.1 billion in over 600 companies since its inception in 2011, making it the UK’s most active investor.
