Amazon Web Services (AWS) recently unveiled significant insights into artificial intelligence (AI) adoption in Vietnam, revealing a promising yet uneven landscape for small businesses. As the country embraces technology, 18% of its businesses reported adopting AI as of 2024, a substantial increase from 13% in the previous year, marking a 39% growth rate. However, the usage tends to remain basic for most, highlighting both the potential for future advancements and the challenges that small business owners may face in leveraging AI effectively.
The research, conducted in collaboration with Strand Partners, surveyed 1,000 business leaders and a representative sample of the public. It underscores that while many Vietnamese businesses are embarking on an AI journey, most are concentrating on basic applications like efficiency and process streamlining. A scant 35% of startups and only 11% of large enterprises have ventured into creating new AI-driven products.
“While 18% of businesses reported they have adopted AI, most of the deployments remain basic despite the rapid adoption over the past year,” noted Nick Bonstow, Director at Strand Partners. This discrepancy reveals a potential divide, creating a ‘two-tier’ AI economy where nimble startups pull ahead, with 55% already utilizing advanced AI applications compared to just 41% of large enterprises.
The financial incentives for AI integration are compelling. More than 60% of businesses using AI observed revenue growth averaging 16%, while around 58% anticipated cost savings of about 20%. These figures present a clear motivation for small business owners to explore AI options. However, the path to deeper AI adoption is stifled by a significant skills gap.
Fifty-five percent of businesses cited a lack of skilled personnel as the primary barrier to AI implementation. This shortage raises questions about global competitiveness, especially as AI literacy is projected to be essential for half of all future jobs. Alarmingly, only 24% of companies feel that their current workforce’s skill set is sufficient for AI tasks, prompting many to consider boosting salaries for AI-skilled candidates by 40% to attract the right talent.
The survey also touched on regulatory concerns. Many businesses hope for a stable regulatory environment that enhances consumer confidence, with 71% expecting compliance-related costs to rise in the next three years. This regulatory landscape could heavily influence small businesses’ capacity to adopt AI sustainably.
AWS emphasizes the importance of addressing these concerns. Key recommendations for overcoming existing barriers focus on building industry-specific digital skills programs and establishing straightforward, pro-growth regulations. Moreover, with 69% of businesses more likely to adopt AI if government initiatives support them, it’s critical to accelerate public sector digital transformation, particularly in healthcare and education.
AWS’s commitment to fostering AI growth in Vietnam is evident through various initiatives, such as the rollout of local AI training programs and the introduction of Edge locations to enhance digital services. Over 100,000 individuals have received training in cloud and AI since 2017, while the ‘AI Ready’ initiative offers free courses tailored to meet local language needs.
“Vietnam businesses show strong AI innovation adoption, demonstrating significant economic potential. However, critical barriers remain,” stated Eric Yeo, Country General Manager, AWS Vietnam. Addressing these challenges will be vital for ensuring that small business owners can fully harness AI’s potential, contributing to a more robust economic landscape.
As small business owners contemplate the integration of AI into their operations, recognizing both the opportunities and challenges is essential. While the current trend shows basic adoption, the ongoing developments within the regulatory and skills landscapes could usher in a new era of advanced AI applications. With careful planning and resource investment, small businesses can position themselves at the forefront of Vietnam’s AI evolution.
For more details on the study and its implications, visit the original press release here.
Image Via BizSugar
