AI Adoption Gains Traction Among SMEs, BGF Survey Shows

A recent survey by BGF of business leaders across its 400-company investment portfolio found that AI is being widely embraced by small and medium-sized enterprises (SMEs), with an overwhelmingly positive outlook. An impressive 89% of respondents viewed AI as an opportunity for growth, while only 7% saw it as a potential risk.

Key findings from the survey included:

• • Significant Potential: 64% of SME leaders rated AI as a major opportunity for their business, with an additional 25% seeing it as a possible advantage.
  • Budget Allocation: One-third of companies have already dedicated budgets to AI, and nearly 40% plan to do so within the next year.
  • In-House Expertise: Over half reported having the necessary AI skills within their teams.
  • Generative AI Adoption: A quarter of respondents are currently using generative AI in production, while just 11% have not yet considered it.

Simon Steward, BGF’s head of digital, emphasized that AI adoption is crucial for SME competitiveness and expressed optimism about the readiness of SMEs to integrate AI tools, citing their intuitive design and easy integration with existing systems. Steward attributed this adaptability to the forward-thinking nature of SMEs, which are often eager to adopt innovative approaches for growth.

Prominent areas of AI applications include customer service, data analytics, and content creation. SMEs are leveraging tools such as chatbots and virtual assistants to automate processes and introduce services that were previously out of reach. AI also supports operational efficiency, enhances competitiveness, and bolsters SMEs in fields where they previously lacked expertise, such as marketing and data analysis. Additionally, some businesses are now using AI in areas previously outsourced, including training and recruitment.

Case Studies in AI Adoption

Panthera BioPartners, a clinical trials company supported by BGF since 2022, has been exploring how AI can streamline patient recruitment, improve trial accuracy, and shorten study timelines. CEO Stuart Young highlighted the transformative potential of generative AI for advancing the company’s operations, particularly with recent developments in large language, image, and video generation.

Medigold Health, an occupational healthcare provider, has also harnessed AI to innovate. Since BGF’s 2017 investment, Medigold launched ‘Paradigm,’ an AI-driven module aimed at optimizing medical reporting and clinician workflows. CEO Alex Goldsmith reported that assistive technology has improved efficiency, raising clinician retention by 58% and enhancing job satisfaction. Clinical innovations director Jonathan Behr added that since its March launch, Paradigm has enabled over 70,000 case reports and reduced consultation time, allowing more patients to be served.

Investment and Concerns

While 25% of SMEs remain hesitant to invest in AI due to competing priorities or uncertainties about its application, many remain enthusiastic. However, some flagged concerns, including fears that AI might lower entry barriers in markets, intensifying competition. Around 15% cited worries about cyber threats and data breaches, with the rapid evolution of AI technology, data governance issues, and upskilling costs heightening caution among certain businesses.

The survey was based on responses from 84 SMEs funded by BGF, which has invested around $5.1 billion in over 600 companies since its establishment in 2011, making it the UK’s most active investor.

Have you read?
The Daunting CEO Agenda: What it Means for Communications.
How to Write Attractive Book Proposals? Jennifer Scott Pens Some Tips.
The Psychology Tool Leaders Can Use to Increase Productivity.
Generative AI Offers Major Benefits for Independent Workers.
7 things I didn’t know about flying business class.