Tech-smart on a budget: how family businesses can keep pace without falling behind

SMEs can integrate AI without overspending on fashionable tools, while strong cybersecurity does not have to be expensive

Neglecting cybersecurity basics – around multifactor authentication and access permissions, for example – can be extremely costly. Photograph: iStock

Digitalisation, AI adoption and strong cybersecurity are essential for almost every modern business, but they are expensive. How can small to medium sized family businesses keep pace with technology advances without breaking the bank?

For the traditional Irish family business, the “digital revolution” often feels like a storm gathering on the horizon, impressive to look at but potentially devastating if you aren’t prepared, says David Broderick, director of the Small Firms Association. “However, the narrative is shifting away from the turbulent tides of fear to the tranquil climate of opportunity.

“For a family SME with limited capital, the goal is ‘quick wins’. The fastest return on investment most likely comes from process automation. Investment should begin by identifying the paper trails that eat up staff time.” The government’s Grow Digital assessment portal enables business owners to pinpoint exactly where automation – such as cloud-based inventory or automated invoicing – will shave hours off the work week, Broderick says. “This has the potential to save small business owners money and, crucially, time, which is a finite resource these days.”

For most SMEs today, a significant risk lies in overspending on fashionable AI tools without a clear business case, according to Felipe Acuña-Bernal, managing director, Immersify. “AI is powerful and it will reshape how businesses operate, but it is still maturing. The biggest misconception is the belief that AI can replace people. It cannot. AI is a tool, and its value comes from augmenting human expertise rather than replacing it.”

David Broderick, director, Small Firms Association. Picture: Conor McCabe

Where AI delivers real impact in SMEs is when it is embedded into existing workflows in a practical way, says Acuña-Bernal. “It can support marketing teams with content drafting, assist sales teams with research and communications, and help customer support teams respond more efficiently.

“However, it should not be deployed as an unsupervised decision maker. Poorly implemented AI agents can damage trust, particularly in family businesses where relationships matter deeply.” For SMEs, the smarter approach is measured integration, Acuña-Bernal says. “AI should be layered on to strong digital foundations, not treated as a stand-alone initiative.”

Cybersecurity is another issue to be considered. Cybercrime is becoming ever more sophisticated, says Barry Whelan, technology partner, PwC Ireland. More than a third (39 per cent) of global respondents to PwC’s 2026 Global Digital Trust Insights survey reported that their most damaging data breach in the past three years cost their organisation more than $500,000 (€435,000), with some breaches costing more than $20 million (€17.4 million).

“Over half of Irish firms are increasing investment in cyber risk, but there is still more to do on proactive cybersecurity measures. Irish organisations are rethinking their cyber strategies to stay ahead of increasingly complex threats. Cloud vulnerabilities (33 per cent) top the list of cyber threats for companies around the world, followed by attacks on connected products (28 per cent) and third-party breaches (27 per cent).” The most critical cybersecurity measure is multifactor authentication, says Acuña-Bernal. “Most modern cloud platforms offer it, but many SMEs simply do not activate it. Without it, access to a single employee password can expose the entire company’s systems and data.

“Structured access control is equally important. Not every employee should have access to everything, and permissions should reflect roles and be reviewed regularly.”

Acuña-Bernal says strong cybersecurity does not have to be expensive, but neglecting the basics can be extremely costly.

Digital transformation and automation are seen as the top growth opportunities for Irish family businesses, according to the PwC Ireland 2025 Family Business Survey. “Nearly two-thirds (65 per cent) specifically cited experimentation with AI as a key growth opportunity ahead of global peers. However, fewer than half (46 per cent) are currently prioritising investment in digital transformation and AI adoption for long-term growth.”

Barry Whelan, partner, PwC Ireland

Just 15 per cent said they were actively investing in and were early adopters of new technologies such as AI and automation.

Whelan outlines several steps family businesses can take to introduce technological change without alienating staff. The first is cultural: create an environment where questions are encouraged, mistakes are treated as learning opportunities, and knowledge is shared openly.

Leaders should communicate clearly how change aligns with the company’s long-term purpose and values, since staff are more receptive when they understand the reasoning behind decisions. Family businesses should also lean into their natural advantages: flat hierarchies and concentrated decision making allow them to move quickly, while their inherent respect for tradition provides stability during periods of change.

To fund the necessary cybersecurity measures, microenterprises should look to the Trading Online Voucher, which provides up to €2,500 for enhancing digital capacity, says Broderick. “For larger SMEs, the Digital Discovery Grant offers up to €5,000 to hire an expert to build your 18-month digital roadmap. You cannot use AI or secure your perimeter if your data is trapped in disconnected spreadsheets.

“For small business owners that fear the incoming storm, it would be wise to utilise tools and services available from public bodies and other private enterprise, in order to find a prosperous harbour in the tempest.” Invest in AI and its transformative abilities for your business, Whelan advises. “To do this, you need to invest in having good data for AI to function. Most businesses nowadays are either piloting or scaling AI to bring real competitive gains, and companies who do not invest will eventually get left behind.” But it will be important to have the appropriate guardrails in place, “including governance over AI, to ensure AI can be transformative in a controlled, safe and trustworthy way,” Whelan concludes.