SMBs need practical solutions over hype to bridge the gap between AI readiness and reality.

Nearly 70% of small and midsized businesses (SMBs) still remain in the experimental or opportunistic stages of artificial intelligence (AI) maturity, despite growing investment and widespread use of AI tools. The research comes from a new global report commissioned by SAS, a leader in data and AI, and IDC. 

AI for SMBs: Closing the Readiness‑Reality Gap is based on a global survey of more than 1,600 SMB leaders across 28 countries. It not only reveals a critical disconnect between AI aspirations and organisational readiness but offers SMBs a practical roadmap to move from AI experimentation to real business impact. Today’s technology landscape surrounds companies of all sizes with stories of AI’s potential, but many SMBs do not yet have the data foundation, strategy, skills and governance in place to effectively scale AI within their own business to deliver tangible results.  

“To actually make something of their AI strategy, SMBs need to move from disconnected pilots to true alignment of their data, people and resources,” said Daniel-Zoe Jimenez, Vice President, Research from IDC. “Experimenting with the technology is one thing. Deploying it strategically and sustainably is quite another.”  

Although survey respondents hail from small and midsized businesses in several sectors, the report offers deeper analysis for five spotlight industries: banking, insurance, government, health care and life sciences. The report highlights obstacles each of these industries face, from fragmented data and inconsistent execution to regulatory challenges and limited organisation-wide adoption, that hinder the scaling of AI across their organisations.

  • Banking is ahead on AI strategy and governance, but most still struggle to turn pilots into consistent, organisation wide impact.
  • Insurance is actively using AI for real business problems, yet fragmented data and uneven execution keep many from scaling what works.
  • Government organisations show strong planning and oversight for AI, but legacy systems and data silos continue to slow execution.
  • Health care is experimenting with AI to improve efficiency, but data complexity, regulation, and skills gaps keep adoption at an early stage.
  • Life sciences see high AI potential, but complex data environments and regulatory demands limit widespread adoption beyond specialised teams.

The readiness-reality gap  
The majority of SMBs are in what the report classifies as experimental or opportunistic stages of AI adoption. These businesses are using AI in disconnected implementations across their organisations, but they’ve yet to bring those pieces together into a unified strategy. This is the readiness-reality gap, according to the report, where AI aspirations alone aren’t enough to transform intention into outcomes. Key findings highlight that while SMB leaders are increasingly motivated to use AI, many struggle with: 
  • Fragmented data and tools
  • Isolated AI initiatives
  • Limited skills and organisational readiness
  • Insufficient governance and ROI measures 

A practical growth framework 
The report introduces the AI Readiness Index, a framework for evaluating SMBs’ readiness across planning, building, enabling and executing. As they progress across these areas, SMBs navigate four stages of maturity: Experimental, Opportunistic, Structured and Integrated. The Index then provides a clear, diagnostic lens through which SMBs can evaluate how their organisation is progressing and map their path forward to implementing AI to meet their unique business needs. The research underscores the growing need for integrated AI platforms and trusted partners, particularly for SMBs with limited IT resources and greater exposure to change. 

“SMBs don’t need more hype. What they need are results that translate into a meaningful return on their AI investments,” said John Carey, Senior Vice President of Global Channels at SAS. “This research shows that AI adoption is already widespread, but operationalising AI at the company level remains a challenge. SAS outlines a path forward with tools and resources that make sense for SMB customers,” 

Alongside the report, SAS has launched an AI Readiness Calculator for SMBs, enabling organisations to evaluate their current maturity, identify gaps and receive personalised recommendations for next steps based on their size and readiness level.