Nearly a third of small and medium-sized enterprises have adopted AI solutions: Survey – Singapore News
SINGAPORE – A recent survey conducted by a local data protection and governance company has revealed that nearly one-third of small and medium-sized enterprises (SMEs) are incorporating artificial intelligence (AI) into their workflow. However, a concerning 20 per cent of these businesses have failed to establish internal policies to govern the use of AI in their workplaces, leading to potential privacy and security issues.
SMEs are increasingly turning to AI services for various tasks, including crafting proposals, creating websites, and generating customizable artwork. The adoption of AI not only aims at saving labor costs but has also resulted in a remarkable boost in enterprise productivity, with an approximate increase of 50 per cent.
Notably, generative AI has found significant application in educational settings, as evidenced by the Edtech Asia Summit, where one software company reported receiving three times more inquiries about AI-powered teaching assistants compared to the previous year.
Despite the evident advantages of AI integration, concerns surrounding issues like privacy breaches persist. The lack of appropriate internal policies governing AI usage within businesses raises potential risks, including copyright conflicts and data breaches.
In order to fully harness the benefits of AI while safeguarding privacy and security, it is essential for businesses to establish comprehensive internal policies, said Dr. Linus Tan, CEO of the data protection and governance company that conducted the survey. By doing so, SMEs can ensure responsible and secure integration of AI technologies into their operations.
A New Zealand software company’s data highlights that over the past year, around 20 per cent of small businesses have encountered heightened security and privacy issues following the implementation of generative AI.
In response to these challenges, some local businesses have taken proactive measures by implementing their own security protocols to safeguard against potential data leaks while utilizing AI services. This includes maintaining strict access controls and regularly monitoring AI systems to identify any vulnerabilities.
The survey underscores the pressing need for SMEs to establish comprehensive internal policies that address the ethical and privacy considerations associated with AI adoption, ensuring the responsible and secure integration of these technologies into their operations.
AI adoption brings about significant opportunities for SMEs to enhance their productivity and efficiency. However, it is crucial for businesses to strike a balance between leveraging AI’s potential and managing the associated risks.
By establishing internal policies, SMEs can protect themselves from potential legal and reputational consequences while fostering an environment that values privacy and ethically sound practices when it comes to AI implementation.
The survey findings serve as a reminder for SMEs to prioritize privacy and security as they incorporate AI solutions into their workflows. Building trust among customers and stakeholders is paramount, and this can only be achieved by adhering to robust internal policies that strike a balance between innovation and responsibility.
As the prevalence of AI continues to grow in the business landscape, it is imperative for SMEs to stay up-to-date with industry best practices and ensure compliance with relevant data protection regulations. By doing so, SMEs can navigate the AI-driven future with confidence, seizing the opportunities that these technologies offer while safeguarding the privacy and security of their customers and businesses.
