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AI technologies increasingly important for small business competitiveness

The Commission's guide: ‘Can Artificial Intelligence help your business?’ has been published to assist small businesses exploring emerging AI technologies.

16 May, 2024

The NSW Small Business Commissioner has encouraged small businesses to explore opportunities to use AI in their business while remaining alert to some of the pitfalls.

In a recent submission to the Select Committee on Adopting Artificial Intelligence, the NSW Small Business Commissioner noted AI technologies are likely to become increasingly important for small businesses to stay competitive, while flagging some of the challenges unique to the small business sector.

“AI has the potential to significantly change the way we do business,” says Commissioner Chris Lamont. “However, limitations on time and resources may prevent small business operators from reaching the full potential of these emerging technologies.”

The Commissioner’s submission noted some small business segments may need additional support and encouraged policy initiatives that enable small businesses to embrace new technologies.

The Commission’s survey results indicate only around 1 in 4 (27 per cent) small businesses have experimented with AI tools with just under 1 in 2 users (43 per cent) reporting a positive or very positive experience. Only 1 per cent of users reported a negative experience while the remaining businesses were neutral. 

“Despite some of the impressive short-term gains, adoption of AI requires consideration of some of the longer-term implications and risks,” said Chris Lamont. “In many applications, AI can assist to complement rather than replace human judgement, and keeping humans involved is a good way to mitigate some of the potential pitfalls.”

The Commission's guide entitled ‘Can Artificial Intelligence help your business?’ provides case studies and information on the possible risks when implementing AI. 

Read the submission here.