A new report from Viatel Technology Group and Amárach Research reveals that cybersecurity is the foremost barrier to AI adoption among Irish small and medium-sized businesses (SMBs), threatening to stall the momentum of this transformative technology.
The report, titled “AI Horizons: Insights into AI Adoption, Security and Risk in Irish SMBs”, paints a picture of a market eager for AI, with 80% of Irish SMBs anticipating some level of adoption within the next 12 months, yet cautious due to significant security risks.
One of the key points highlighted is the rise of ‘Shadow AI’, which refers to staff using AI tools and systems without the knowledge or approval of IT departments or central management. This practice creates governance gaps, increases the attack surface, and heightens security risks, making it difficult for organisations to manage AI integration effectively.
Irish SMBs are also conscious that cyber attackers are leveraging AI, a factor that is escalating their sense of vulnerability. A significant 66% of organisations report that the use of AI by cyber attackers has increased their perceived risk level. Furthermore, 13% of businesses report suspected AI-related security incidents, suggesting potential vulnerabilities are already present.
Lisa Hunt, Microsoft Practice Director at Viatel Technology Group, emphasised the importance of cybersecurity in AI adoption: “Cybersecurity is no longer a side consideration, —it’s central to every AI conversation we’re having with Irish businesses. At Viatel, we’re helping organisations build AI frameworks that are secure from the ground up. That means putting in place rigorous governance, safeguarding sensitive data, and ensuring compliance at every stage. Our approach is practical, proven, and tailored to the real-world challenges Irish SMBs face.”
The findings indicate that security concerns (38%) are cited as the top barrier to successful AI implementation. This is followed by a lack of technical expertise (35%) and the absence of a formal AI policy (33%). The research underscores the critical need for robust, trustworthy AI solutions, alongside clear guidance and education on data protection and cybersecurity best practices.
However, security defences among Irish SMBs remain modest. Only 44% of organisations express confidence in their current security protocols. Alarmingly, 23% report having no AI security measures in place, while another 20% are not aware of any. Current security measures focus heavily on the human element, including employee training and guidelines (23%), approved AI tools lists (18%), and regular security audits of AI tools (17%).
The report concludes that addressing these fundamental security concerns is essential for Irish SMBs to confidently embrace AI and realise its full potential. Robust AI solutions, clear governance guidelines, and comprehensive education on data protection and cybersecurity best practices are crucial for overcoming these barriers and ensuring a successful, secure AI journey.
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