The survey of 79,000 businesses across five countries – Australia, Canada, Ireland, New Zealand, and the UK – was conducted, to look at the opportunities and concerns employers have around the use of AI in the workplace.  This is the second year the survey has been run.

Use of AI remains low across small and medium businesses; despite a 50% year on year increase, only 1 in 10 SMEs say they are regularly using AI in their workplace.

Aussie and Kiwi employers are the most likely to use AI regularly, while Irish employers are the least likely.

As the use of AI increases, so do concerns around the risks posed by it. Almost half of those surveyed report concerns about the security risks posed by AI, a 60% year-on-year increase.

Almost half of employers (47%) surveyed cite security risk as their biggest concern around AI in the workplace, up from 30% this time last year.

Significant year on year increases were also seen in concerns around reputational impact (+183%), risk of breaking the law (+183%), loss of intellectual property (+178%), and impact on work quality and productivity (+158%) since 2023.

Meanwhile there has been a 6% decrease in the number of businesses believing that AI has the potential to transform many workplaces, alongside a 19% increase in the number saying AI is useful but won’t overtake traditional ways of working. The survey also found a 21% increase in the number of employers saying they were fearful of the unknown when it comes to AI.

Where businesses have incorporated AI into the business, the majority are using it for administrative tasks or creative writing.

Other key findings include:

• 1 in 3 SMEs believe AI has the potential to positively transform the workplace, while 1 in 10 believe it will be highly detrimental
• Less than 50% of small businesses say that people are irreplaceable in their business
• 1 in 4 SMEs say AI will probably reduce the number of people employed by their company at some point
• For the second year running, Canadians are the most cautious, with only 23% of employers believing AI has the power to positively transform the workplace. 53% are either fearful of the unknown, unsure about negative elements or believe that AI will be highly detrimental to the workplace.
• Australian employers are twice as concerned about loss of intellectual property than Irish and UK employers, and three times more concerned than Canadian employers.
• 40% of UK SMEs worry about the margin of error AI brings, up from 14% this time last year

Peninsula Group Chief Operations Officer Alan Price says “AI continues to dominate the headlines, but it’s clear that businesses are still unsure of the balance between risk and potential. As usage increases, so do the concerns. This shows that there is still considerable work to be done to reassure SMEs around the world.

“While many can see the benefits of AI, there are still significant concerns around security, productivity, and intellectual property that need to be addressed before we will see widespread implementation across businesses. With online security and data protection being a top priority for most employers, this is not a big surprise.

“All employers are looking for ways to speed up processes, improve productivity and, ultimately, increase profits. With costs continuing to rise globally, it’s not surprising to see 1 in 4 small business owners believe that AI will probably reduce the number of people they employ at some point.

“Some of the concerns expressed by respondents around premature integration, lack of safeguards, and AI only being as good as the person programming it are all valid points that need to be addressed. As does unconscious bias in the technology. Several respondents stated they feel AI is ‘racist’, ‘sexist’ and ‘prone to manipulation’, citing concerns around deep fakes and growth in the use of AI to impersonate people or commit fraud.

“Overall, it appears small business owners believe that AI has potential to help businesses with certain things but that it will affect jobs, traditional ways and values that make an engaged workforce. Whilst most are not opposed to using AI, they are looking for more clarity and assurance when it comes to security and quality of output.”

Reseach by the Peninsula Group