Finding the true potential of AI for UK small businesses

“The pace of technological change is speeding up, not slowing down, and it’s crucial that all businesses are part of the digital revolution.”

“Our survey shows the picture is not equal across all sectors and firms aren’t yet using the technology to its full potential.”

Shevaun Haviland, Director General of the British Chambers of Commerce

A recent report from the British Chambers of Commerce and Intuit shows that increasing use of AI among UK small businesses. But The Turning Point For SMEs: Unlocking The Next Level Of AI report also finds that many businesses have yet to unlock the true power of AI.

The state of AI for UK small businesses

Artificial intelligence (AI) is transforming the digital landscape for many businesses. AI is speeding up processes, digging deeper into business data and automating many of the labour-intensive tasks that have been holding back UK enterprises.

So, what does the AI landscape look like in the second half of the 2020s?

• Over a third of SMEs (35%) say they’re actively using AI technology.
• This figure for SME AI usage is up from 25% in 2024.
• 24% of responding firms say they plan to adopt AI in the future.
• Only 33% report having no plans to use AI, down from 43% last year.
• Disparities in AI usage across industries

The report shows that AI adoption is continuing to rise across all industries and sectors. But the research outputs show some key disparities across industry types.

Almost half (46%) of B2B service firms (finance, law and marketing etc.) are using AI. But just 26% of B2C firms and manufacturers are using AI in a similar way. Around 60% of respondents say they’re using AI for content creation and knowledge work.

Are we utilising the true power of AI?

There’s one insightful takeaway from the report that should act as a driver for UK SMEs. Many SMEs feel they’re not yet using AI to its full potential.

Just 11% of responding firms reported using technology to a ‘great extent’ to automate or streamline operations.

• 42% say they’re using AI technology ‘to some extent’.
• 29% saying they’re using the tech ‘to a minimal extent’.
• And 14% responded ‘not at all’ to the question of using AI tools.