Business Success and Optimism Linked with SMEs that Implement Advanced Technologies, According to New eir evo Study

eir evo, Ireland’s number one telecommunications and ICT solutions provider, has unveiled new research highlighting the strong connection between AI adoption, technological integration, and business success among small and medium-sized enterprises. The study, supported by Microsoft Ireland, surveyed 400 SME companies across the country, revealing key insights into how advanced technologies like AI are transforming businesses.

Key Findings:

AI Adoption and Technological Integration

35% of SMEs have already adopted AI with an additional 48% planning to implement it within the next 12 months, demonstrating growing interest in harnessing the potential of artificial intelligence.

• Key areas where AI is expected to make an impact include Customer Service (32%), IT (27%), and Sales (14%).

AI Driving Efficiency and Time Savings

AI is also seen as a major time-saving tool for SMEs. According to the research, 32% of respondents believe that AI could reduce administrative tasks by 3-4 hours per week, with an average saving of 3.8 hours per week anticipated across the board. A further 23% estimate AI could cut over 6 hours of administrative work each week, enabling businesses to focus on higher-value activities. This time-saving benefit could redirect up to €5.1 billion per year into alternative business areas.

Cybersecurity and Digital Preparedness

Cybersecurity remains a critical area of concern, with 17% of businesses having experienced a cyber-attack in the past 12 months. Despite this, 51% of respondents feel somewhat or highly prepared to manage cybersecurity threats, while 49% feel underprepared or very underprepared.Of those that experienced an attack, 16% lost between €5,000 – €20,000, with 2% losing over €20,000.

Challenges to AI and Technological Adoption

While the benefits of AI are clear, the research also highlights barriers to adoption. A lack of understanding (26%) and investment (23%) were cited as the top obstacles to AI implementation, alongside concerns over security (20%). Similarly, when it comes to investing in new technology, the upfront cost of investment was a barrier for over half (52%) of respondents, with ongoing costs and uncertainty around the business benefits also cited as key challenges.

Geographical Disparities in AI Adoption and Digital Preparedness

The research also highlights regional differences in technology adoption and digital readiness. Urban businesses, particularly in Dublin and larger counties, are leading in AI implementation, with 52% having already adopted AI compared to just 35% in rural areas.

The research also highlights digital skills as a significant concern for many Irish SMEs, with 24% reporting that their employees lack the necessary digital capabilities for future business growth. This figure rises sharply to 64% in rural areas, where SMEs also face greater challenges around investment costs and understanding new technologies. These findings underscore the need for targeted support to bridge the digital divide and help rural businesses adapt.

Commenting on the research, Martin Wells, Managing Director at eir evo, said: “Our research demonstrates a clear link between the adoption of advanced technologies, such as cloud-based services and AI, and improved business performance among Irish SMEs. It’s encouraging to see that many businesses are embracing supportive technologies, but there are still barriers to overcome, particularly around investment and knowledge.

“The study sheds light on the vital role AI and technology integration play in the success of SMEs, offering valuable insights for businesses looking to strengthen their digital strategies, and business performance, in the years to come.”

Jonathan Eustace, Small Midmarket and Corporate Lead at Microsoft Ireland, said: “Digital transformation is reshaping industries, making AI and cloud services essential for SMEs to stay competitive. eir evo’s research highlights how technology can drive efficiencies and enhance business operations and security. However, almost half of organisations feel unprepared for potential cyber attacks. With the rising cyber threat landscape, prioritising cybersecurity is crucial. At Microsoft, we are committed to helping organisations strengthen their security and navigate their AI journey.”

David Broderick, Director of the Small Firms Association (SFA), said: “While many SMEs are progressing in adopting new technologies, there’s still a critical need to develop digital skills within the workforce. To unlock the full potential of these innovations and drive sustained growth, employees must have the right capabilities. Irish SMEs have shown remarkable adaptability, and with continued investment in skilling, they are well-positioned to thrive in an increasingly digital economy. This research highlights the ongoing need for digital training to ensure SMEs remain competitive and resilient in today’s fast-changing landscape.”

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