Only 18 per cent of small businesses in Ireland have reported incorporating artificial intelligence (AI) into most or some of their business practices, with more than half not doing so at all, a recent survey has found.Just four per cent of businesses surveyed by the Small Firms Association (SFA) stated they have no plans to use AI. Meanwhile, a “massive” 31 per cent indicated they have not started or looked into using the new technology – an 11 per cent increase from the number of small businesses that said so last year. The SFA defines a small business as one that employs fewer than 50 people.A further 11 per cent signalled that although they are yet to use AI, they “plan to look into this” in the next six months. The SFA says this “research shows that barriers remain to adopting AI”. 31 per cent of companies that do not use AI blame “a lack of technical expertise” for their hesitation to embrace the new technology, while 28 per cent pointed to a lack of time to investigate it and 17 per cent said a lack of finances is the cause.Uptake of AI services is most common in the financial and professional services sectors, with 51 per cent availing of it for most or some of their practices, and is most uncommon within retail, hospitality and manufacturing industries. The SFA said these findings show “a significant gap remains between basic AI usage and true strategic adoption among small businesses”.Within the 18 per cent of the 404 companies surveyed that do avail of AI services, an overwhelming 92 per cent only use “generic AI tools or models”, such as ChatGPT, Microsoft Copilot and Google Translate, the SFA said.While 30 per cent of users said they customise existing AI models to adapt to their business needs, only seven per cent use AI tools they developed themselves. [ If Elon Musk is right and AI makes jobs extinct, what will we do with our free time?Opens in new window ]“For those who do actively use customised or strategic AI, the rewards are undeniable,” the SFA said. 76 per cent reported an increase in efficiency, with 55 per cent saying it improved their decision-making process. Eight per cent said it was “too early to tell” its impacts. David Broderick, the SFA’s director, called on the Government “to utilise trusted funding channels from the National Training Fund to address technical skill deficits among small businesses.”“AI can make huge gains for a small business’s productivity, but small business owners need assistance in identifying where those gains can be made for their specific needs,” he said.“Speed of delivery and early impact is essential here,” he said. “This needs to be done quickly so that our small firms do not fall behind.”The survey was conducted through an online and telephone questionnaire in April and May of this year by Amárach research. This is the second annual survey of its kind commissioned by the SFA.