Survey says: As businesses push to remain competitive in a recovering economy, leaders are looking toward internal operational efficiency as a means of creating or optimizing external opportunities. A recent KPMG survey reveals that operational issues are the single most pressing concern for CEOs. But with generative AI, 81% of SMBs "lack the skilled talent" to fully leverage AI in the workplace.

Zooming in: The growing focus on AI application comes at a time when companies face increased competition and shifts in consumer demands. 60% of CEOs say gen AI has changed entry-level job skill requirements. While CEOs expect downstream profitability to increase from generative AI, SMBs are focused on immediate efficiency and productivity improvements.

SMB and M&A focus: Generative AI is now a top priority for SMB operations, especially in up-skilling workers and making operations more streamlined. Taking advantage of new technology is the clear benefit for SMBs and SMEs for growth and potential M&A opportunities.

"Businesses that are digitally-savvy are likely to get more out of a transaction [...] 81% of SMBs think generative AI would make their company more valuable to prospective buyers,” said Neil Blair, partner and President of KPMG in Canada Corporate Finance Inc.

Why it matters: The practical application of AI is the leading question for businesses globally. How organizations up-skill workers to use AI, and in turn, how AI up-skills workers will be the answer. Embracing a generative future is key to gaining a competitive edge for talent and growth in a re-emerging economy.