Smaller Canadian businesses are the least sure about AI — why are they hesitant to adopt it?

More about Canadian SME's hesitancy

The main concern for Canada SMEs using AI at work is the risk it poses to security (35%) – which may naturally lead to why the remaining 65% of companies in Canada may not take the chance in incorporating it into their operations.

At the same time, The study revealed that 41% of SMEs in Canada believe that AI will not replace or reduce the number of employees in the business.

Australian employers are twice as concerned about loss of intellectual property than Irish and UK employers, and three times more concerned than Canadian employers.

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AI attitudes among SMEs

While Canadian SMEs may be the most ambivalent towards the benefits of AI, Australian and New Zealand employers are most likely to use the technology regularly, while Irish employers are the least likely. A majority of respondents that are using the tool, deploy it to take over administrative tasks or for when creative writing is needed.

One of the most significant concerns about AI across all employers is the threat of cyber security breaches or attacks, with almost half of employers (47%) surveyed expressing this sentiment, up from 30% this time last year.

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

However, somewhat jarring is that only less than 50% of small businesses say that people are irreplaceable in their business.

"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,” Price said.

"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."

Peninsula – a global HR, employment law and health & safety advisory and consultancy firm – surveyed 79,000 businesses for this report.

Sources

1. Peninsula Canada: Canadian SMEs least sure about AI, global survey finds (Sept 10, 2024)