A New OECD Report Finds AI Adoption Rising Among SMEs, But Maturity Lags

A new report by the Organization for Economic Co-operation and Development (OECD) finds that while artificial intelligence (AI) adoption is becoming widespread among small and medium-sized enterprises (SMEs), most firms remain at an early stage, and face persistent barriers to scaling their use. 

The report, titled Empowering SMEs in the age of AI: The 2026 OECD D4SME Survey, was conducted between the fourth quarter (Q4) of 2025 and Q1 of 2026 by the OECD Centre for Entrepreneurship, SMEs, Regions and Cities. The survey gathered 2,018 responses across 12 countries, including Canada, France, Japan, the UK, and the US. Findings are based on country averages to account for variations in sample size. As respondents were reached through online platforms, the sample reflects SMEs with relatively higher levels of digital maturity, and is therefore said to be not fully representative of the broader SME population.

Overall, 61 percent of surveyed SMEs report using at least one AI-enabled application, a higher share than the 17 percent recorded for small businesses and 30 percent for medium-sized firms in 2025, according to the OECD’s Information and Communication Technology (ICT) Access and Usage by Businesses database. Despite this uptake, most SMEs remain at an early stage of adoption. Among AI users, 76 percent are classified as “AI novices,” relying on basic tools for isolated functions. A further 15.3 percent fall into the “AI optimizers” category, reflecting broader use based on lower-complexity solutions, while five percent are identified as “AI explorers,” and just 3.6 percent as “AI champions,” integrating AI more extensively across their organizations. 

This distribution highlights a clear gap between adoption and integration. While 75 percent of respondents use off-the-shelf AI applications, five percent rely on customized solutions, and only 3.6 percent deploy agentic AI. In addition, 56.6 percent use AI for isolated tasks, compared to just 19 percent applying it across multiple functions or at the enterprise level. 

Use cases reflect this pattern. Off-the-shelf tools are most commonly applied to marketing activities, with 70 percent of users relying on them for content creation, followed by document drafting at 56 percent, idea generation at 46 percent, and translation at 34 percent. Among firms using customized AI, the main applications are customer demand prediction, cited by 39 percent, and process automation at 34 percent. Agentic AI, where adopted, is primarily used to automate multi-step workflows such as bookings, invoicing, and marketing campaigns, particularly in sectors like retail where these functions are central. 

The report also identifies a strong link between perceived competitive pressure and AI adoption. Half of respondents say their business risks falling behind competitors without greater use of AI. This concern rises to 77 percent among AI users, compared to 44 percent among non-users, suggesting that firms that view AI as strategically important are more likely to adopt it. Evidence from Japan further supports this relationship, showing that perceived competitive pressure is closely associated with higher AI uptake. 

In terms of impact, 54 percent of SMEs report deriving at least moderate value from AI. Only six percent say it has had a transformational effect on their operations, while 15 percent report a significant impact on efficiency, productivity, or decision-making. A further 33 percent cite moderate benefits, such as reducing manual tasks or improving accuracy. By contrast, 44 percent report minimal or no impact, indicating that while AI is delivering measurable gains, its deeper effects remain limited. 

But as AI adoption increases, so do risks. The report highlights a rise in the scale and sophistication of cyber threats, with attackers increasingly using AI to automate and personalize attacks. By early 2025, AI-enabled phishing campaigns accounted for more than 80 percent of global social engineering activity. Within this context, 22 percent of surveyed SMEs report having experienced a digital security breach. Limited cybersecurity resources leave many smaller firms particularly exposed, underscoring the need to strengthen awareness, skills, and protective measures alongside digital adoption. 

Beyond AI, digital financial services are used by 46 percent of SMEs, primarily for payments, cited by 37 percent of businesses. More advanced tools such as peer-to-peer lending and crowdfunding remain limited, used by just two percent. While firms highlight advantages such as faster approvals and simpler processes, they also report concerns around smaller funding amounts, reduced personalized support, and trust and security. 

More broadly, SMEs view digitalization as a driver of efficiency and growth. Automation is cited by 42 percent of firms as a key benefit, followed by access to expanded markets at 33 percent, improved monitoring at 30 percent, and sales growth at 26 percent. However, progress is constrained by cost and capacity challenges. Maintenance costs are cited by 39 percent of firms, hardware expenses by 37 percent, and training costs by 23 percent, while 38 percent report a lack of time for training as a major obstacle. 

Support gaps remain significant. Around 64 percent of SMEs say they need direct financial support to advance their digitalization efforts, while 35 percent call for simpler regulations and 23 percent for clearer guidance and tools. More affordable and flexible training programs are also a priority, cited by 24 percent of respondents. At the same time, only 16.5 percent report benefiting from public support programs, with 65 percent of non-participants unaware such initiatives exist, pointing to issues around awareness, accessibility, and alignment with business needs. 

The findings underscore that while AI adoption is accelerating among SMEs, bridging capability gaps and strengthening digital resilience will be critical to unlocking its full value.