AI in SMEs: from loose tools to lasting competitive advantage

Why SMBs need to reassess how they deploy AI now - and what, specifically, you can do to stay ahead.

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Where do SMEs stand in terms of AI?

AI is no longer future music. It's here. Worldwide, 78% of organizations are now using AI in at least one business function. And generative AI technology-such as ChatGPT and Midjourney-is on a meteoric rise. Yet McKinsey research shows that many SMBs find themselves in a kind of AI limbo: experimenting with tools, but not yet succeeding in creating value structurally.

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There is a gap between what is possible and what actually happens.

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Many organizations limit AI to isolated applications within marketing or customer service. Think chatbot, automated content generation or data analysis in spreadsheets. Fine steps, but they remain small. They lack direction, coherence and strategy. AI is seen as "something of the IT department," not a steering tool for competitiveness.

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What are the underlying challenges?

That AI is not yet making sufficient impact in SMEs is not a matter of unwillingness. It is a sum of recognizable, often logical challenges:

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1. AI is deployed piecemeal

Without a clear vision and structure, AI gets bogged down in trial balloons. No economies of scale emerge, let alone strategic returns.

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2. Too little top-down control

CEOs and boards are often still wait-and-see. But without leadership at the top, AI remains stuck in the realm of experiments and loose tools.

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3. Uncertainty about ROI

What does AI really deliver? Without KPIs and business cases, it's hard to make choices - or adjust if things are disappointing.

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4. Limited internal capacity

Data scientists, prompt engineers or AI product owners are scarce - and often untraceable for SMEs. That inhibits adoption.

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5. Employee loss anxiety

Without proper communication and training, AI leads to cold feet: "Does it make my job obsolete?"

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The result? Many organizations remain stuck in AI as a gadget rather than AI as a growth accelerator.

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What are the options?

There are roughly three routes organizations can take when it comes to AI adoption:

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1. Tool-first approach

Get started quickly with low-threshold AI tools for text, images, customer contact or dashboards.
Plus: low entry level, immediate applications possible.
Min: no consistency, no long-term benefit, dependence on external platforms.

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2. Use-case approach

Target AI to specific processes or departments (e.g., automate quotations).
Plus: measurable impact per case, manageable.
Min: fragmentation remains, difficult to scale up.

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3. Strategic AI transformation

Embedding AI in the heart of the organization: processes, people, systems and decision making.
Plus: sustainable competitive advantage, lower costs and higher sales.
Min: requires leadership, investment and willingness to change.

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What can SMEs do to gain structural benefits?

McKinsey calls it "rewiring the organization." AI requires more than technology; it is more of a strategic recalibration of how you work, think and create value.

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The key? Treat AI not as a tool, but as a transformation.

At TMC Media, we believe in five concrete steps that SMBs can use to really make a difference:

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1. Make AI executive affairs

Designate a final responsible person at the top of the organization. AI should not be driven from IT, but from strategy.

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2. Develop an AI roadmap

Map out where AI adds value in processes, customer interaction and internal efficiency. Think in quarters, not years.

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3. Redesign workflows

AI only really works when you rethink processes. Not "adding AI" to an old process, but building the process with AI in mind.

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4. Set clear KPIs.

Track the effect of AI on costs, lead times, customer satisfaction and revenue. What you don't measure, you can't manage.

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5. Invest in people and trust

Reskill employees. Show that AI does not replace them, but enhances them. Build trust - internally and externally.

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What does it provide?

McKinsey's research shows that organizations that follow this approach realize significant value faster:

• EBIT increase to >5% with structural use of gene AI
• Cost savings of up to 20% in operations, supply chain and IT
• Faster innovation and improved time to market
• Better customer experience through personalization and faster response
• Higher employee satisfaction, if properly supported

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In conclusion: from tool to asset

AI is not the end, it is the means. But only those who have the end clear will know which path to choose. SMEs don't have to become Google or Amazon. But sitting still is not an option. The organizations that invest in vision, leadership and redesign now are building a sustainable competitive advantage.

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Want to discover together what AI can do for your organization? At TMC Media, we combine strategic insight with hands-on execution. If you would like to receive the entire McKinsey report, please leave a message via the contact page.  

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