The majority of the UK’s SMEs are largely unconcerned about the prospect of artificial intelligence (AI), with the potential of improved productivity seen as a potential major benefit, according to research from Close Brothers Asset Finance.
The results were obtained from the Close Brothers Business Barometer, a quarterly survey that questions over close to 1,000 UK and RoI SME owners and senior management across a range of sectors and regions.
“The potential impact of the rise of artificial intelligence and the so-called fourth industrial revolution have been discussed and debated for some time now,” said Neil Davies, CEO, Close Brothers Asset Finance. “What our survey tells is that 65% of firms feel that AI is either going to improve productivity or that it’s too far in the future to be worried about.
“The remaining 35% are more apprehensive, citing ethical concerns and the threat to jobs as their reasons for not being advocates of AI.”
Q.14e Does the prospect of artificial intelligence concern you?
|
Yes, because it will take jobs |
13% |
|
Yes, because it opens up a number of ethical issues |
22% |
|
No, because it is likely to improve productivity |
29% |
|
No, because I think it’s still too far in the future to worry about |
36% |
Technology and its role in improving productivity
When asked the question ‘do you think better technology leads to more productivity?’, over half (51%) of SMEs believe better technology will result in more productivity with only 25% saying no; the rest are undecided.
Regionally, Northern Ireland (64%), London (63%) and Wales (62%) were particularly positive, while in businesses with a turnover greater than £10m, this rises even further to 70%.
The sector perspective: Do you think better technology leads to more productivity?
|
|
UK |
Construction |
Engineering |
Manufacturing |
Transport |
|
|
Yes |
51% |
40% |
63% |
57% |
61% |
68% |
|
No |
25% |
35% |
20% |
26% |
21% |
19% |
|
Not sure |
24% |
25% |
17% |
18% |
18% |
13% |
Technology spend
Most SMEs (61%) are comfortable that their technology is up-to-date, with 22% admitting that it is not, while the remaining 17% are ‘unsure’.
“With cashlow a constant concern for businesses, investing in technology is a key decision,” said Neil. “Firm owners understand that employee expectations are rising and that technology can provide competitive advantage; however, this comes at a cost.
“28% of SMEs update their technology every two years, while 23% do this annually. 6% of companies never invest.”
Laptops and desktop computers – combined – account for nearly half of companies’ technology spend, with software third at 18%.
Q: What is your business’s biggest technology spend?
|
Phones |
13% |
|
Laptops |
25% |
|
Desktop PCs |
24% |
|
Software |
18% |
|
Don’t know |
22% |
Q: On average, how regularly do you upgrade your business’ technology?
|
Annually |
23% |
|
Every 2 years |
28% |
|
Every 5 years |
18% |
|
Every 10 years |
2% |
|
Never |
6% |
|
Don’t know |
23% |
For more news from Close Brothers Asset Finance please click here.
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