Drivers of AI adoption and investment intentions: Insights from Irish SMEs

In this paper, we use novel survey data to consider factors impacting the adoption and intentions to invest in artificial intelligence (AI) by Irish micro-,small- and medium-sized enterprises (SMEs). More specifically, we explore the effects of firm characteristics, barriers to adoption and investment (such as access to finance, security and cost concerns) as well as self-reported knowledge, awareness and understanding of the benefits of AI. We find knowledge-related barriers are informative in explaining differences in current adoption and investment intention rates, whereas operational barriers such as access to finance, security concerns or skills, have a strong impact on shaping future intentions to invest. From a policy-perspective, our results suggest that raising firms’ awareness of the benefits of AI to their business and sector, as well as providing a stable and certain regulatory and security environment, can enhance AI take up among SMEs.