Generative AI and the SME Workforce: New Survey Evidence

Abstract

This study presents new survey evidence on the adoption of generative AI by SMEs in seven OECD countries. It finds that nearly one-third of SMEs are using generative AI, primarily to improve employee performance and address labor shortages. While the technology helps compensate for skill gaps, it also raises the bar for required worker skills. The report highlights that job displacement is currently minimal, with most firms reporting no change in staff numbers. However, barriers such as legal concerns, data privacy, and a lack of internal expertise hinder wider adoption. The findings underscore the need for policy interventions to help SMEs navigate the transition and close the digital divide with larger enterprises.