Generative AI's Impact on the SME Workforce: New OECD Survey Evidence on Skill Gaps, Workload, and Policy Needs
SDG 8: Decent Work and Economic Growth | SDG 9: Industry, Innovation and Infrastructure | SDG 4: Quality Education
Institutions: Ministry of MSME | Ministry of Skill Development and Entrepreneurship | Ministry of Electronics and Information Technology (MeitY)
The OECD report, “Generative AI’s and the SME Workforce: New Survey Evidence”, presents new survey data from over 5,000 SMEs across seven countries on their use of generative AI. As the cornerstone of labour markets, accounting for over 99% of companies and 60% of business sector employment in OECD economies , SMEs’ adoption of technologies like ChatGPT, Copilot, and Midjourney is a critical focus for policymakers.
The primary reported benefit is improved employee performance (65%), and GenAI is actively helping compensate for existing skill gaps (39%) and worker shortages (25.2%) among users experiencing them. While the technology is mostly being used for peripheral, non-core, and simple tasks (e.g., marketing and IT), it has successfully reduced workload for nearly a third (32.7%) of staff. Crucially, the vast majority of SMEs (83%) report GenAI has had no effect on overall staff needs, indicating a preference for task automation and efficiency gains over immediate job cuts.
Policy Relevance and Strategic Path Forward
The report highlights an urgent need for structured policy intervention to maximize GenAI’s potential while mitigating new risks. Currently, half of non-adopting SMEs cite a lack of employee skills as a key barrier, and only a minority of adopting SMEs are providing training or establishing internal guidelines. Furthermore, a majority of non-users are deterred by concerns over copyright, legal issues, and data security.
The strategic path forward must focus on two key areas:
Bridging the Skill Divide: GenAI significantly increases the need for highly skilled workers (20% vs. 9% reporting a decrease), particularly in skills like data analysis/interpretation and creativity/innovation. Governments must offer streamlined support—primarily in the form of training, financial incentives, and information campaigns—to promote AI literacy and help overcome the unit cost and time constraints SMEs face in training investment.
Ensuring Trustworthy Adoption: To overcome legal and data concerns (the most cited barriers after work unsuitability), governments must provide clear, easy-to-access guidance on regulatory compliance and intellectual property rights. Policy interventions that facilitate internal guideline setting and legal research for SMEs will be crucial to ensure GenAI is used safely and responsibly, thereby unlocking the potential for non-users and scaling up trustworthy adoption across the economy.
Follow the full report here: Generative AI’s Impact on the SME Workforce