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Hungarian SMEs’ competitiveness hinges on fixing internal weaknesses and adapting to AI

At a Portfolio conference on SME competitiveness, speakers argued that customer acquisition, workforce organization and risk management are being reshaped by algorithms and AI.

Hungarian SMEs’ competitiveness hinges on fixing internal weaknesses and adapting to AI

At a Portfolio conference in Kecskemét titled "Merre tovább hazai kkv-k? Versenyképesség 2026-ban" (Where next for domestic SMEs? Competitiveness in 2026), speakers argued that customer acquisition, workforce organization and risk management are being reshaped simultaneously. The common thread: algorithms and AI are changing how buyers decide, so firms that identify internal weak points, clean up their data and processes, and present themselves as structured, trustworthy providers to AI systems will gain a competitive edge.

Changing customer behavior and marketing

Péter Szeder, digital strategy director at Initiative Media, said consumers increasingly ask complex questions rather than type a few keywords — for example, "which provider would you recommend nearby?" — and algorithms, AI systems and search-engine answer modules increasingly guide their choices. For SMEs this means mere online presence or product pages are not enough; companies must appear structured, expert and trustworthy for search engines and AI tools to judge them as relevant answers.

Szeder emphasized consistent brand-building, leadership credibility and systematic customer-data collection. AI tools can produce near-term gains (e.g., automating email responses), but longer-term advantage goes to companies that build systems from their own data assets and expert content.

"Human with the machine" — practical examples

Baranyi Márton, project lead at Portfolio Group, used the kentaur-s chess analogy: the strongest performer is neither the human nor the machine alone but the pair that collaborates best. Case studies presented included:

  • Fehérvári Krisztina, CEO of Poliext, described a 35-year-old family-owned plastics-processing company that now employs 183 people. They implemented an AI-based meeting and project management system that began by extracting action lists and decision points from leadership meetings and has evolved into a searchable knowledge base supporting daily management and production coordination.

  • Kata Illés, co-founder and AI architect at Indivizo, explained how AI can support recruitment by turning hard-to-measure interview situations into structured data. She stressed AI should not replace human hiring decisions, particularly in high-risk HR areas; it should provide better questions and decision support. Indivizo gives developers dedicated time to experiment with AI and build prototypes rather than simply imposing new tools on day-to-day work.

  • Benedek Pál, co-founder of Nexly, warned that for many SMEs the precondition to AI is still basic digitalization. Companies should first map what software, data and processes exist; AI cannot leap over disordered operations.

Panelists noted that most firms use AI to increase capacity and efficiency rather than to cut headcount. Success requires more than openness: systematic pilot projects, internal learning time and aligning technology with people and culture.

Supply chains: hidden costs and dependencies

Moderated by Nikolett Virág, CEO of VND Research, a panel looked at supply chains as systems of elements and interdependencies. Firms are most vulnerable where dependencies are strongest. An often-underestimated cost is dependency: an irreplaceable supplier, raw material or key employee influences prices and managerial choices even before actual disruptions occur.

Three companies illustrated typical vulnerabilities:

  • Mariann Beh, founder-owner of Bazsalikomos Kert és Pékség, described a 25-person artisanal bakery. Small businesses struggle to balance high quality, manual labor and affordability as rising ingredient and energy costs cannot always be passed to customers.

  • Zsanett Julis, supply chain director at Kecskeméti Konzerv Kft., presented an export-oriented private-label food producer’s view. The company largely produces for export with fixed prices and annual tenders, while weather (affecting raw material quantity and quality), energy, packaging, freight and labor all exert constant pressure. She noted Kecskemét’s strong industrial region means many firms draw from the same local labor pool, increasing competition for blue-collar workers and turning hiring into an operational risk.

  • Sándor Szűcs-Szabó, CEO of Rollsped, described reality in transport. The company’s international fleet numbers 70–75 vehicles and its domestic fleet 30–35. He singled out fuel costs, the euro exchange rate and driver shortages as major risks. Fuel clauses can mitigate some price volatility, but delayed contract adjustments force firms to absorb losses; volatile euro moves create problems where revenues may arrive in euros while many costs are in forints. Driver shortages mean dependence on third-country workers and sometimes direct managerial interventions to ensure services run.

All three stressed digitalization and automation are survival tools, but not purely technological fixes: bridges must be built between experienced long-tenure workers and new digital systems. Virág urged companies to map their operations on an A4 sheet and mark the weakest point; often competitiveness improves most by addressing one clearly identified critical weakness rather than by large, unfocused investments.

Practical takeaways for SMEs

Conference recommendations to improve competitiveness included:

  • identify and prioritize internal weak points;
  • cleanse and structure customer and operational data;
  • create a credible, well-structured online presence that AI tools and search engines can parse;
  • secure digital foundations before layering AI solutions;
  • run small pilots and allocate time for organizational learning.

The conference concluded that competitiveness increasingly depends not only on market position but on internal operational order, data quality and the ability to work with AI.


Related reference date cited in the coverage: 2026.10.13.