A new OECD paper, Empowering SMEs in the age of AI: The 2026 OECD D4SME Survey, shows that artificial intelligence (AI) is already widely used by small and medium sized enterprises (SMEs), but that most firms remain at an early stage of adoption and face persistent barriers to unlocking its full potential.
The survey finds that 61% of SMEs report using at least one AI enabled application, reflecting the rapid diffusion of off-the-shelf tools such as generative AI for marketing, content creation and administrative tasks. However, three quarters (76%) of AI using firms are “AI novices”, relying on simple tools for isolated uses rather than integrating AI across their business operations.
Despite the growing use of digital and AI tools, digital security readiness among SMEs remains limited. Nearly half of surveyed firms (46%) report having no or only minimal digital security measures in place, even as their reliance on digital tools increases. Already, 22% of SMEs report having experienced a digital security breach, underscoring growing exposure to cyber risks that can undermine trust, resilience and further digital adoption.
Cost and time pressures continue to be the main obstacles to SME digitalisation. Firms most often cite maintenance costs (39%) and hardware costs (37%), alongside lack of time for training (38%), as key factors preventing them from expanding or deepening their use of digital technologies. These constraints help explain why many SMEs struggle to move beyond basic adoption towards more impactful and strategic digital integration.
The paper also highlights low uptake of public support for SME digitalisation. Only 16.5% of SMEs report having benefited from government support programmes, while 65% of non‑beneficiaries say they were not aware such programmes existed. Administrative complexity and insufficient alignment with firm needs further limits participation, suggesting that improving programme visibility, accessibility and relevance could significantly boost impact.