Small businesses are increasingly recognizing that artificial intelligence (AI) is vital for their survival and growth over the next five years. A recent report by Small Business Britain and BT emphasizes the need for the UK to enhance support systems to harness AI’s transformative potential, enabling smaller firms to avoid falling behind.
AI: A Key to Small Business Success
The “AI Opportunity for Small Businesses” report, which surveyed 2,000 business owners, reveals that 60% of small firms believe AI will be crucial for their success in the coming years. Notably, 62% of these businesses are already integrating AI into their operations.
Enhancing Efficiency Through AI Adoption
Thanks to AI, small businesses are streamlining operations, automating tedious tasks, and enhancing customer service. These advancements allow businesses to concentrate on innovation and growth. Currently, the most popular applications for AI among small firms include marketing (47%), operations (17%), and customer service (8%).
Challenges Hindering Widespread AI Adoption
Despite its potential, significant barriers hinder the widespread adoption of AI, particularly for smaller firms. Over two-thirds (68%) of entrepreneurs are seeking more affordable AI solutions. Additionally, half of them admit to lacking a solid understanding of these technologies, with 60% requesting practical assistance and support.
A Call for Comprehensive National Support
Recognizing that small businesses are at various stages of AI adoption, the report proposes thirteen actionable recommendations aimed at the government, technology providers, educators, and business networks. These guidelines aim to bridge the existing gap and prevent an ‘AI disparity’ among the country’s 5.45 million small enterprises.
Key Recommendations for Bridging the AI Divide
To unlock the full potential of AI for small businesses, a coordinated approach is essential. This support will enhance productivity, reduce costs, and open new market opportunities. The report’s recommendations include:
- Development of cost-effective AI solutions
- Incentives such as funding, grants, and tax benefits
- Tools to measure return on AI investments
- Expanded educational offerings and practical guidance
- Promotion of accessible, user-friendly AI tools
- A centralized national AI resource hub
- Peer-led mentoring tailored to specific sectors
Need for Clearer Regulations and Sector-Specific Support
The authors of the report also stress the importance of increased regulatory clarity, alongside easily comprehensible guides on compliance and ethical practices.
Voices from the Small Business Community Advocate for Immediate Support
Michelle Ovens CBE, Founder of Small Business Britain, stated:
“AI is transforming industries across the UK and is now a critical conversation for small businesses. We cannot afford to leave any small firms behind.”
The report notes significant benefits for underrepresented founders, highlighting that while 64% of disabled entrepreneurs are already utilizing AI, only 14% feel confident in their understanding of the technology, revealing a significant opportunity for tailored training programs.
BT and Entrepreneurs Champion Inclusive AI Adoption
Dr. Chris Sims, Chief Commercial Officer at BT Business, remarked:
There is an “urgent need for accessible training, affordable tools, and inclusive pathways to AI adoption,” ensuring no small business is left out.
Amelia Peckham, co-founder of Cool Crutches, added:
“Incorporating AI effectively is essential. Businesses must know how to use these technologies correctly, guided by experts.”
Report Launches at National Event in London
The report will be officially launched at a high-profile event at the Science Museum in London, bringing together entrepreneurs, AI experts, and representatives from various businesses.
