How Do Professionals in SMEs Engage With AI and Regulation? An Interview Study in Austria

As Artificial Intelligence (AI) technology is becoming more widespread, small to medium sized enterprises (SMEs) are beginning to use it extensively. This paper presents the results of an interview study with eight CEOs or co-founders of SMEs. We explore the practical applications of AI technologies within these SMEs and their anticipation of forthcoming European AI regulations, specifically the AI Act. Additionally, we also investigate attitudes and dispositions towards voluntary codes of conduct as outlined within it. This study aims to shed light on the operational, regulatory, and ethical dimensions of AI integration within SMEs. It reveals that SMEs favor third-party AI systems, particularly those based on Large Language Models (LLMs), due to their convenience and minimal integration effort. Additionally, SMEs are keenly aware of their need for external support to navigate upcoming AI regulations, emphasizing the importance of tailored interventions to ensure compliance and optimal use of AI technologies. Lastly, SMEs view voluntary codes of conduct as outlined in the AI Act as a testament to a company's commitment to go beyond mere legal compliance, thus reinforcing trust. Based on our findings, we propose three design implications for the HCI community: convenient AI integration, post-adoptive regulatory support, and proactive ethical design.