A new study reveals that small and medium-sized businesses are increasingly turning to AI for competitive advantage, but face obstacles like infrastructure limitations and data security concerns. Managed Service Providers play a vital role in assisting SMBs with effective AI adoption.
AI Integration Seen as Crucial for SMB Growth, Study Finds
Denver, June 10, 2024 — Small and medium-sized businesses (SMBs) aiming to stay competitive in an evolving market landscape are increasingly looking towards artificial intelligence (AI) as a pivotal asset, according to a new report. The “2024 AI Buying Trends for SMBs” report, conducted by global analyst firm Channelnomics and released by cloud commerce marketplace Pax8, highlights both the growing adoption of AI technology and the barriers these businesses face in harnessing its full potential.
Widespread AI Implementation with Significant Barriers
The study surveyed SMBs globally, revealing that 88% have successfully implemented at least one AI system. Despite this, many businesses are struggling to realise the complete value of their AI investments due to issues such as insufficient infrastructure, poor data hygiene, and security concerns.
Ryan Walsh, Chief Strategy Officer of Pax8, remarked, “While there is a positive trend towards AI adoption among SMBs, the lack of sufficient infrastructure and adequate data management underscores the vital role Managed Service Providers (MSPs) play in navigating these complexities.”
The Urgency of AI Adoption
The report underscores the urgency for businesses to incorporate AI technologies. Over 80% of global SMBs perceive a risk to their competitive standing if they neglect AI adoption. Notably, 49% fear falling behind their competitors without adequate AI integration. Despite these apprehensions, many SMBs also recognise the long-term benefits of AI, including improvements in operational efficiency, data analysis, customer engagement, and overall business process optimisation.
Strategic Investments in AI
A substantial majority, 96%, of the SMBs surveyed expressed readiness to invest in additional AI tools and systems within the next year. Furthermore, 64% plan to expand their AI implementation in the next two years, citing motivations like faster adaptation to market changes, reducing operational costs, and entering new markets.
Challenges in AI Integration
However, the path to effective AI integration is fraught with challenges. Insufficient infrastructure was identified as the leading hurdle by 42% of respondents. Additionally, data privacy and security concerns were mentioned by 40%, and in North America, 38% pointed to difficulties in integrating AI with existing systems. A lack of in-house skills and expertise remains a notable issue, affecting 33% of the businesses surveyed.
The Role of Managed Service Providers
Given these obstacles, many SMBs are increasingly reliant on MSPs for support. The report notes that 58% of businesses are partnering with solution providers to independently implement AI systems. In North America, 68% of businesses cited technical integration challenges as the primary reason for seeking external help, followed by support services (64%) and training (53%).
Larry Walsh, CEO of Channelnomics, highlighted the MSPs’ critical role, stating, “MSPs not only bridge gaps in technical expertise but also act as strategic advisors, providing tailored AI solutions and comprehensive support to enable SMBs to transform their operations.”
Conclusion
As AI continues to reshape business operations, the findings of the “2024 AI Buying Trends for SMBs” report indicate a clear trend toward increased adoption despite significant challenges. MSPs are poised to be pivotal partners in this journey, offering the expertise and solutions necessary for SMBs to navigate the complexities of AI integration.
For further details, the full SMB AI Buying Trends report can be accessed online.
About Pax8 and Channelnomics
Pax8 operates as a cloud commerce marketplace that connects SMBs with partners and vendors through AI-powered insights and product support, serving over 30,000 managed service providers globally. Channelnomics provides research, market analysis, and strategic guidance to technology vendors and service providers.
