SMBs take cautious approach to AI adoption, study finds

GTIA has released a study on how small and midsize businesses are adopting artificial intelligence, based on responses from 520 SMB and microbusiness decision-makers.

The findings suggest many smaller companies are taking a cautious approach rather than moving quickly into broad AI deployments. Forty percent of respondents use AI tactically for specific business needs, while 50% were classified as "AI-Invested", meaning they use it for operational functions and some customer-facing applications.

Another 24% said they were evaluating AI through pilot programmes before deciding on wider adoption. The research points to a market where experimentation and practical use are taking precedence over sweeping transformation projects.

Sharon Florentine, Manager and Research Analyst at GTIA, described the mood among respondents as measured rather than enthusiastic. "There is a lot of noise around AI right now, and yet our study shows that SMBs are not buying into the hype and taking a measured approach, testing use cases, establishing guardrails, and focusing on where AI can deliver real business value," she said. "In many ways, slow and steady wins the race to result. The companies laying the groundwork today will be in a much stronger position as AI adoption matures."

The report also indicates that many businesses already see benefits from the systems they have put in place. According to the study, 84% reported positive business impacts from AI tools and platforms, which may indicate a link between greater AI maturity and stronger outcomes.

Security concerns

Even so, security and governance remain central to decision-making. Almost a quarter of respondents, or 24%, cited data security, privacy and compliance concerns among the main barriers to deployment.

Those concerns appear to be shaping how smaller businesses govern AI use within their organisations. The study found that 44% have established acceptable-use policies for AI tools, 40% have introduced employee training and accountability requirements, and 39% have adopted data security and confidentiality requirements.

These figures suggest formal governance is becoming part of AI adoption for many smaller firms, particularly where sensitive information, regulatory obligations or internal risk controls are involved. Rather than treating AI as a standalone software purchase, respondents appear to be placing it within broader technology and workplace policies.

Florentine said the organisations getting the most value are also putting controls around their use of AI. "The organizations seeing the greatest value from AI aren't just adopting the technology, they're putting the right guardrails around it," she said. "ITSPs can help end-users turn governance into a competitive advantage by reducing risk while enabling faster, more confident innovation."

Workforce impact

The study found a more muted effect on hiring and staffing than some broader industry debates might suggest. Around 34% of respondents said AI adoption had not meaningfully affected their hiring or talent strategies.

That suggests that, among smaller businesses at least, AI is more often being introduced as a tool to support existing operations than as an immediate trigger for major workforce restructuring. It also aligns with the report's wider picture of gradual adoption, with companies testing uses, assessing risks and building internal rules before extending deployment.

Role for providers

The findings also highlight demand for outside support. Half of SMB respondents said they already work with a strategic partner or IT service provider on AI initiatives, while another 12% said they were considering external assistance.

When asked where they needed the most help, respondents pointed to employee training and selecting the right AI tools, both cited by 38%. Other areas included integrating AI into existing systems at 31%, assessing cybersecurity and compliance risks at 29%, and developing AI governance policies and guidelines at 28%.

These responses suggest that smaller companies are looking not only for software products but also for advice on implementation, controls and staff readiness. For service providers, the research points to a client base that wants help with the practical steps of adoption as much as with the technology itself.

Overall, the report presents a picture of AI adoption shaped less by headline-making experiments than by incremental business decisions. Across the sample, the emphasis was on targeted deployment, risk management and measured use, with many respondents seeking external guidance as they expand AI into operations and selected customer-facing work.