Australian & Kiwi SMBs increase AI investments for growth

Companies in Australia and New Zealand are notably increasing their investment in artificial intelligence (AI), recognising it as a pivotal driver for growth and innovation. This insight emerges from a comprehensive survey of 500 small and medium-sized businesses (SMBs) commissioned by Schneider Electric, a player in digital energy management and automation transformation.

The poll indicates a significant upsurge in AI adoption, with nearly half of the respondents planning substantial increases in AI spending over the next five years. Furthermore, two-thirds have already escalated their IT budgets this year. AI’s role is seen as instrumental, especially in enhancing growth, improving customer experiences, and managing operational costs.

According to the research titled "The essential guide to understanding AI for SMB and Mid Market leaders in Australia and New Zealand," 48% of Australian organisations are opting for a company-wide approach to AI with robust investment levels. Meanwhile, 43% identified embedded AI as the top priority for this year. These findings highlight a strategic shift towards integrating AI into core business operations.

Key areas of focus identified in the survey include infrastructure, data management, security, personnel, processes, goal setting, and collaboration with service partners. Schneider Electric's study also illuminates essential considerations for AI investments, such as the usage of edge computing, cloud services, and private data centres. This diversified approach suggests that the future of AI infrastructure will likely blend edge environments with traditional on-premises and cloud-based solutions.

Despite the enthusiasm for AI integration, challenges remain. Security and data management surfaced as prominent hurdles, with over 42% of respondents pinpointing these issues as significant obstacles. These concerns underscore the necessity for robust security frameworks and efficient data management strategies to facilitate seamless AI adoption.

The survey further reveals that 80% of SMBs recognise the need to include edge computing within their AI strategies, although many acknowledge that their existing edge infrastructure requires upgrading. Up to 10% of AI initiatives are anticipated to incorporate edge computing, reflecting its growing importance in the holistic deployment of AI technologies.

Customer experience (CX) technology emerged as the top investment priority for Australian businesses, with modernisation and security following closely. A notable portion of respondents also projected that AI-generated content, particularly film and video, would exert the most immediate and significant impact on their operations.

Joe Craparotta, Vice President of Secure Power at Schneider Electric, emphasised that AI’s reach extends beyond large enterprises to smaller businesses across varied sectors. "AI is already built into many platforms businesses use," Craparotta noted, "but now there is an opportunity to unlock its capabilities to improve business outcomes."

Craparotta also highlighted AI's potential to aid organisations in making smarter decisions, particularly in areas related to operational efficiency, electrification, and digitisation. He expressed a hope that the research will enable SMBs to harness AI for sustainable and efficient business practices.