AI Adoption Grows Among SMEs Amid Skills Gap

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Small and medium-sized enterprises (SMEs) in the United States are embracing artificial intelligence (AI) to drive productivity and streamline operations. However, many are not investing in parallel upskilling initiatives, creating a gap that may limit the long-term benefits of this technology.

According to a recent survey by Business.com, nearly 64% of small business owners reported using AI tools for functions such as marketing, customer service, and data analysis. Tools like OpenAI’s ChatGPT, Google’s Bard, and applications powered by Microsoft (NASDAQ: MSFT) Copilot are among the most commonly adopted platforms.

However, only 28% of these business owners have provided formal employee training in AI tools, according to the same survey. This mismatch between AI adoption and workforce readiness mirrors findings reported by McKinsey & Company in its 2023 global survey on AI, which warned that the lack of trained personnel is a key barrier to effective AI deployment.

Business.com’s editorial director, Eric Hanson, said: “While small businesses are clearly enthusiastic about the potential of AI, many are missing a critical component of successful implementation: human readiness.”

The findings come as AI adoption rises across industries. A report by the U.S. Chamber of Commerce highlighted that AI usage could increase U.S. productivity by 1.5% annually over the next decade. Yet, without proper training, many businesses risk undercutting the efficiencies AI is designed to deliver.

Experts warn that smaller firms are particularly vulnerable to overlooking training due to budget constraints and a lack of internal expertise.

Jacob Hsu, CEO of software firm Catalyte, said in an interview with Reuters: “Solely focusing on technology without preparing the workforce creates operational bottlenecks and limits scalability.”

Despite financial pressures, AI usage among small businesses is increasingly viewed as essential. Business.com found that:

  1. 44% of SMEs use AI-powered customer service chatbots
  2. 39% use AI for email marketing automation
  3. 22% use AI for inventory and supply chain management

Yet only about 12% of respondents felt “very prepared” to adapt to new AI technologies within their teams. Most cited a lack of time, resources, and knowledge as primary constraints to training.

The challenges are not exclusive to the United States. In the United Kingdom, a recent report by the Federation of Small Businesses (FSB) found that while 38% of its members are exploring AI, only 15% have rolled out skills development plans. The report encouraged government incentives to support digital training in the SME sector.

To address the issue, experts recommend that small firms adopt low-cost, accessible training programmes. Online courses, peer-to-peer learning groups, and vendor-led workshops can provide foundational AI literacy without requiring major financial investment.

The following checklist may help business owners align their AI and training strategies:

  • Audit current use of AI tools and identify core functions
  • Assess employee digital competencies and AI familiarity
  • Develop a basic in-house or online training curriculum
  • Assign AI champions or leads to support team adoption
  • Review and adjust the strategy quarterly based on performance

For policymakers and business networks, closing the skills gap may be the next major frontier in small business digital transformation. Integrating workforce development with technology investment is viewed as critical to ensuring long-term competitiveness in the evolving AI-powered economy.

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