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Employer Perspectives on AI in SMEs: Policy Insights for Productivity and Sustainable Careers

Author

Listed:
  • Fang, Tony

    (Memorial University of Newfoundland)

  • Harrison, Jennifer

    (EM Normandie Business School)

Abstract

This practitioner insights paper draws on employer perspectives to examine the challenges and opportunities of AI adoption in SMEs and to develop policy insights to enhance productivity and support sustainable careers. Policy insights are derived from a survey of 1,700 business owners, executives, and senior managers, with particular attention to SMEs operating in Atlantic Canada. We find that employers associated AI with productivity and efficiency gains, although adoption remained patchy across firms and regions. Many reported uncertainties regarding future skill needs, emphasized compliance training, and viewed AI primarily as a productivity tool. This paper offers rare employer perspectives on the intersection of AI, productivity, and sustainable careers to inform policy. Policymakers and multiple actors across the sustainable career ecosystem can support SME productivity by strengthening digital capabilities, workforce planning systems, and regional skills ecosystems. Such efforts may help ensure that AI adoption contributes to both productivity and sustainable career outcomes.

Suggested Citation

  • Fang, Tony & Harrison, Jennifer, 2026. "Employer Perspectives on AI in SMEs: Policy Insights for Productivity and Sustainable Careers," IZA Discussion Papers 18837, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp18837
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    Keywords

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    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy

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