A recent global survey by the Peninsula Group has revealed that small and medium-sized enterprises (SMEs) are divided in their views on the impact of artificial intelligence (AI) in the workplace.

While one in three businesses believe AI has the potential to positively transform their operations, 1 in 10 fear it could be highly detrimental.

The survey, which polled 79,000 businesses across Australia, Canada, Ireland, New Zealand, and the UK, highlighted both the opportunities and concerns that employers face regarding AI adoption. Despite a 50 percent year-on-year increase in AI usage, only 1 in 10 SMEs report regular use of the technology.

Regional differences were also noted, with Australian and New Zealand businesses leading in AI adoption, while Irish employers were the least likely to integrate AI into their operations.

As AI adoption rises, so do concerns. Nearly half of those surveyed expressed worries about the security risks associated with AI—a 60 percent increase compared to last year. Security remains the top concern, with 47 percent of respondents citing it as their primary issue. Other significant concerns included the potential for reputational damage (+183%), legal risks (+183%), loss of intellectual property (+178%), and impacts on work quality and productivity (+158%).

Interestingly, the survey found a 6 percent decrease in the number of businesses that believe AI could transform workplaces, alongside a 19 percent increase in those who view AI as a useful tool that won’t replace traditional methods. Additionally, there was a 21 percent rise in employers expressing fear of the unknown regarding AI.

Among businesses that have integrated AI, most are using it for administrative tasks or creative writing. However, the survey revealed growing concerns over AI’s impact on jobs and intellectual property. For example, one in four UK SMEs now worry about losing intellectual property due to AI, a significant jump from 1 in 20 last year.

Other notable findings include:

  • Less than half of small businesses believe people are irreplaceable in their operations.
  • One in four SMEs anticipate that AI will eventually reduce their workforce.
  • Canadian employers remain the most cautious, with only 23 percent believing in AI’s transformative potential. Over half are either fearful, uncertain, or believe AI could be detrimental to the workplace.
  • Australian employers are twice as concerned about intellectual property loss compared to their Irish and UK counterparts, and three times more than Canadian businesses.
  • 40 percent of UK SMEs are worried about AI’s margin of error, up from 14 percent last year.
  • One in five UK small businesses using AI report a positive impact.

Peninsula Group Chief Operations Officer, Alan Price, commented on the findings: “AI continues to dominate headlines, but it’s clear that businesses are still uncertain about the balance between its risks and potential. As usage increases, so do the concerns. This shows there is still considerable work to be done to reassure SMEs globally.”

Price highlighted the need for more robust safeguards and clarity around AI’s impact on security, productivity, and intellectual property. He also noted concerns about the premature integration of AI, unconscious bias in technology, and the risks associated with AI being “as good as the person programming it.”

“Overall, it appears small business owners recognise AI’s potential but remain cautious about its implications for jobs, traditional working methods, and workforce engagement. While many are not opposed to AI, they are seeking more assurance on security and output quality before fully embracing it,” Price concluded.

The survey underscores the ongoing debate within the SME community regarding AI’s role in the future of work, with many businesses weighing its potential benefits against significant risks.

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Amelia Brand

Amelia Brand is the Editor for HRreview, and host of the HR in Review podcast series. With a Master’s degree in Legal and Political Theory, her particular interests within HR include employment law, DE&I, and wellbeing within the workplace. Prior to working with HRreview, Amelia was Sub-Editor of a magazine, and Editor of the Environmental Justice Project at University College London, writing and overseeing articles into UCL’s weekly newsletter. Her previous academic work has focused on philosophy, politics and law, with a special focus on how artificial intelligence will feature in the future.