It’s fair to say that workplace AI integration will only become more critical in the short term as more and more businesses adopt this technology across their systems. However, such strategy comes at a cost. How can smaller firms find the money to invest?

The use of AI tools by businesses in all aspects of their work, from back office and software development to planning and marketing, is growing rapidly. Wherever it is being used, it is transforming processes and products. For an increasing number of firms, it is question of keeping up.

What is holding back small firm AI integration?

However, integrating AI into workplace operations has a price tag, not only in terms of hardware, software and training expenses, but also in relation to other issues. A key issue for businesses at present is data security, with concerns linked to the threat posed by cybercrime.

A recent survey by FDM Group revealed that over a third of businesses were stalling over AI adoption because of fears over data security. While AI can help firms combat the activity of cybercriminals, providing a barrier to intrusion, it can also introduce vulnerabilities. And small firms are on high alert with regard to cyber threats.

Cyber-criminals are increasingly targeting smaller firms because the comparatively lower level of security that they have in place. Businesses face a range of risk, including cyber extortion, incidences of which experts are warning could grow rapidly in 2024 (year-on-year growth in such attacks is put at almost 80%).

Investing in AI in the workplace and how alternative lenders can help

Whether it is related to investing in new systems or concerns over cyberattacks, it is clear that cost is a key barrier to greater AI workplace integration at small businesses. Which is perfectly understandable given the market headwinds that they’ve had to face in recent years. But investment is essential for many – so how can they find the money and safeguard cash flow?

Alternative finance can help.

Services such as invoice finance, asset finance and peer-to-peer lending are proving a vital source of capital for small businesses in the current funding climate (with 65% more SMEs experiencing difficulty in accessing finance from high-street banks).

These alternative finance facilities, which offer a more easily accessible, affordable and personalised approach to lending, are helping small businesses survive and target recovery, stability and growth. In particular, invoice finance is allowing firms to secure capital without putting key business relationships at risk. As much as 90% of an approved invoice can be advanced by a finance provider, with the remainder settled by the client.

This profile has helped cement the reputation of alternative finance in the business sector. According to the British Business Bank, it is alternative lenders that are increasing filling the small business funding gap, with asset finance alone rising by 7% to £23.5 billion in 2023. At the same time, a 2024 study shows that more and more SMEs are turning to alternative lenders to access larger-scale finance packages.

Small firm finance options for greater AI adoption

For all the noise around AI at the moment, both positive and negative, it’s advantages for businesses are getting clearer all the time. For many, its adoption is already a must. However, investing in the current climate is a challenge for smaller firms. This is why it is vital that these businesses are aware of all the finance options available to them, including the services of alternative lenders.

To find out more about A&T Business Associates services, contact Tony Hedger on 01903 602211 or tony.hedger@atbusinessassociates.co.uk.