Many businesses using AI to save time, but do they know what they're doing?
Xero found almost two-thirds of small and medium businesses were already using AI.
Small and medium businesses in New Zealand are increasingly turning to artificial intelligence (AI), according to technology firms HP and Xero. Despite the potential for time-saving benefits, many firms are still learning through trial and error, according to a recent study. Almost two-thirds of these businesses are already using AI, with an average time-saving of about one working day.
However, businesses are cautious about privacy, security, accuracy of AI responses, and the time required to set up the tools correctly. James Bergin, Xero's executive general manager of technology research and advocacy, highlighted that while small firms are reporting productivity gains from AI, these benefits have not yet been clearly observed across the wider economy. He emphasized the need for practical guidance and simple rules around security, governance, and appropriate use of AI.
HP New Zealand managing director Shannon Harris suggested that businesses do not necessarily need extensive policy documents to start benefiting from AI. Instead, they require basic principles for security, governance, and appropriate use. Harris emphasized the importance of "guardrails and frameworks" over lengthy policy documents to help businesses utilize AI without slowing them down, especially when handling sensitive customer or financial information.
Bergin also pointed out the necessity for businesses to understand the limitations of different AI tools, particularly in scenarios where accuracy is critical. The AI tool, he referred to as "accountable intelligence," should handle routine tasks and point to useful information, with business owners or advisers retaining responsibility for final decisions. This approach aims to leverage AI for routine tasks while ensuring human oversight for critical decisions.
The study underscores that while the availability of AI capabilities is a significant opportunity, the real challenge lies in effectively turning this technology into practical applications. Harris stressed that the key to successfully integrating AI into business operations lies in understanding the specific business problems and applying human judgment to the results.
Confidence in AI technology is crucial for small firms to transition from experimentation to meaningful adoption, which could significantly enhance productivity and economic growth in New Zealand.
Written by urgent.news from RNZ Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
