New research from CreditorWatch reveals that while larger businesses are rapidly adopting AI and other cutting-edge technologies, smaller businesses are falling behind. Nearly half (47 percent) have not implemented any new tech in the past year.

The findings, part of CreditorWatch’s latest Business Sentiment Survey, show that 35 per cent of businesses have embraced artificial intelligence (AI) to enhance their competitiveness. However, the report also highlights several challenges holding back wider adoption of technology across industries, particularly for small and medium businesses.

Big business embracing AI

Larger businesses are leading the charge when it comes to technology adoption, with 89 per cent reporting they’ve implemented new technologies in the past 12 months. AI is the standout, with industries like Business/Professional Services (49 per cent), Financial Services and Insurance (39 per cent), and Health and Education (34 per cent) taking advantage of its capabilities.

Patrick Coghlan, CEO of CreditorWatch, says these numbers reflect the growing importance of AI in maintaining a competitive edge. “It’s encouraging to see so many businesses adopting AI and other advanced technologies. In today’s economic climate, where external pressures are impacting businesses, digital transformation can help deliver cost savings and give companies an advantage,” he said.

However, smaller businesses are struggling to keep up. Only 38 per cent of small businesses reported implementing new technologies, leaving them at risk of falling behind as the digital landscape evolves.

Tech barriers for smaller businesses

The report points to several key barriers preventing businesses, particularly smaller ones, from embracing digital transformation. Limited financial resources top the list, with 32 per cent of businesses saying cost is the main hurdle. Cybersecurity concerns (27 per cent) and a lack of time or capacity to invest in new technologies (25 per cent) are also holding many businesses back.

Larger companies face different challenges. While they have the resources to adopt new technologies, 31 per cent cited a lack of skilled employees to manage digital transformation. Medium-sized businesses, meanwhile, struggle with strategic direction, with 28 per cent saying they don’t have a clear plan for implementing new technology.

AI making small business life easier

AI is proving useful in a range of industries. According to the CreditorWatch survey, businesses are using AI for tasks like content creation and editing (41 per cent), idea generation (36 per cent), and customer service chatbots (32 per cent). Automating routine tasks (29 per cent) is another common use, helping businesses streamline operations and free up resources for more strategic activities.

Interestingly, smaller businesses are leaning heavily on AI for content creation, with 47 per cent citing it as their primary use case, while larger businesses focus on AI for recruitment (43 per cent) and content creation (40 per cent). Medium-sized businesses are using AI most for customer service, with 42 per cent saying chatbots have improved their customer interactions

Satisfaction with AI is high, but adoption rates not so much

Despite the challenges, businesses that have adopted AI are generally satisfied with the results. Overall, 95 per cent of respondents reported satisfaction, with medium-sized businesses leading the way at 98 per cent, followed by sole traders at 95 per cent, and large businesses at 94 per cent.

However, satisfaction doesn’t necessarily correspond to adoption. While AI is gaining traction, almost half of all businesses surveyed have not adopted any new technologies in the past year, raising concerns about their ability to remain competitive in the long term.

Coghlan suggests that while the benefits of AI and digital transformation are clear, the barriers faced by many businesses – particularly smaller ones – are significant.

“The fact that nearly half of businesses haven’t implemented any of these technologies highlights the ongoing challenges. Limited financial resources, cybersecurity concerns, and a lack of skilled employees are just some of the factors holding them back from realising the full potential of digital transformation,” he said.

The digital divide

As digital transformation continues to reshape industries, the gap between businesses that are adopting new technologies and those that are not is becoming more pronounced. With larger companies moving ahead and smaller businesses struggling to keep pace, there’s a risk of a growing digital divide that could impact competitiveness across sectors.

CreditorWatch’s report emphasises the importance of overcoming these barriers to ensure all businesses can benefit from the efficiencies and advantages that AI and other advanced technologies offer.

For more information about the CreditorWatch Business Sentiment Survey

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