The rapidly growing AI adoption is transforming small and medium-sized businesses (SMBs) across the Asia Pacific, with 63 per cent of SMBs using or experimenting with AI. Among those leveraging AI, 90 per cent report revenue growth, according to a recent report by customer service management vendor Salesforce.
The study, which surveyed 3,350 SMB leaders across 26 countries, highlights that 75 per cent of SMBs globally are either experimenting with or actively implementing AI, citing its ability to boost revenue, productivity, and customer satisfaction. Singapore is a leader, with 94 per cent of SMBs actively deploying or testing AI solutions.
The report revealed a stark contrast between growing SMBs and their more stagnant counterparts. Thriving businesses placed a key focus on AI capabilities, while less successful ones focus mainly on cost.
Across the Asia-Pacific, the top three AI use cases are automated service chatbots that can reduce response times, marketing campaign optimisation to improve digital and offline campaigns, and generation of new content.
However, the integration of AI comes with challenges. SMB leaders highlight the difficulty of keeping pace with the technology and staying ahead. Forty-two per cent of respondents worry that their company may fall behind if it does not keep up with AI advancements.
In the region, 63 per cent of SMB leaders say keeping pace with changing technology is a major challenge, and 40 per cent say that their companies lack the time to master the ever-growing array of tools in their tech stack.
Data quality is another pressing concern, with 72 per cent of Asia-Pacific SMB leaders believing that improving their data would lead to increased revenue.
Yet, as SMBs strive to unlock AI’s potential, trust remains a top priority. Consumer trust in AI remains low, and SMBs are keenly aware of the risks associated with rapid technological change.
In the Asia-Pacific, 74 per cent of SMB leaders are willing to spend more on technology from trusted vendors. Their top concerns around AI include security risks, where protecting sensitive data remains a top priority; the lack of strategy or use cases; and poor data quality.
“SMBs in Singapore are already seeing clear benefits from AI despite having fewer resources than enterprises, proving that growth and innovation are not limited by size,” said Sujith Abraham, senior vice-president and general manager for Salesforce in ASEAN.
“As AI agents evolve with unprecedented levels of intelligence, they can empower SMBs to build a limitless workforce across business functions,” he added.
The findings might help to give renewed energy for AI efforts in 2025, a year when many businesses believe AI projects will have to deliver results after early experiments. Some businesses are even rethinking their investments in AI in the new year, according to some reports.
The uncertainty is not unusual for a nascent technology’s adoption stage. A separate IDC report highlights the growing interest in generative AI (GenAI) among SMBs and midmarket segments in the Asia-Pacific (excluding Japan).
While businesses recognise GenAI’s potential to revolutionise various industries, they are still exploring how to capitalise on the benefits of this technology.
To navigate this landscape, companies are relying on their technology providers/suppliers to embed GenAI into their offerings, to access ongoing support and updates without investing heavily in internal resources.
