Small and mid-sized enterprises (SMEs) in Singapore and across the globe are quickly adopting artificial intelligence (AI) into their operations, yet a significant capability gap persists, with 95 per cent of SME decision-makers admitting they need more training to effectively leverage the technology.
This paradox comes despite 72 per cent of these leaders considering themselves AI experts.
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The findings stem from a global TeamViewer survey, which polled 1,400 business leaders, including 427 from SMEs. The research, conducted in October 2024, highlights a critical challenge for the rapidly evolving digital economies, particularly in Southeast Asia, where SME agility is a key growth driver.
The AI paradox: High adoption, low maturity
While AI is firmly established on the SME agenda, its integration often lacks depth. A notable 86 per cent of SME leaders are comfortable with employees outside of IT using AI tools.
However, this widespread comfort does not always translate into frequent usage. Only every third SME respondent uses AI daily, and just 16 per cent report weekly use.
Despite less frequent use, SMEs surprisingly perceive themselves as more AI-mature than larger enterprises. Thirty-five per cent of SME decision-makers describe their AI usage as “very mature,” compared to only 22 per cent of larger organisations. This disparity between perception and actual proficiency underscores the urgent need for targeted training and support.
The stakes: Automation gaps and business optimism
The consequences of inaction weigh heavily on SMEs. For 28 per cent of SME decision-makers, the biggest fear is increased operational costs due to missed opportunities for automation. This concern diverges from the broader business community, where falling behind competitors (cited by 26 per cent) was the primary worry.
Despite these challenges, optimism about AI’s potential remains high. Seventy-two per cent of SME leaders expect AI to drive the most significant productivity surge of the century, with 76 per cent seeing it as essential for overall business performance. Furthermore, 70 per cent believe AI can help expand job opportunities for parents and caregivers.
Overcoming hurdles: Skills, security, and infrastructure
The report identifies several persistent barriers slowing down AI maturity for SMEs:
Insufficient AI training: More than a third of leaders (38 per cent) cite this as the main obstacle.
Security concerns: A significant 74 per cent are worried about data management risks. Moreover, 65 per cent state they only use AI tools within tightly controlled security frameworks.
Lack of confidence in risk management: A telling 77 per cent admit they would not bet a week’s salary on their organisation’s ability to effectively manage risks like unauthorised AI tool usage.
Infrastructure readiness: Nearly half of SME decision-makers (47 per cent) report not having the necessary systems in place to scale AI as quickly as they would like.
Southeast Asia’s unique challenge and investment outlook
For Southeast Asian SMEs, the diverse digital maturity across countries and sectors presents a unique challenge, necessitating tailored AI strategies. The region’s economic growth is heavily propelled by the agility and innovation of its SME sector, making timely and effective AI adoption crucial for national digital economies.
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Despite the current hurdles, momentum for AI investment is building. Three in four (75 per cent) SME leaders plan to increase their AI investment in the next 12 months, with the same proportion expecting this rise within the next six to twelve months. This signals a clear intent to move from experimental adoption towards more advanced implementation.
Bridging the gap: TeamViewer’s solution
Companies like TeamViewer are stepping in to help SMEs bridge this capability gap. TeamViewer CoPilot, a digital assistant integrated into remote support sessions, helps IT agents stay focused, move faster, and make better decisions. This practical solution aims to improve IT efficiency, reduce downtime, and raise service quality without adding complexity or requiring additional resources.
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The image was generating using ChatGPT.
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