AI is being increasingly adopted by businesses in the UK, but there’s a risk that smaller businesses will miss out on the opportunities it presents.
The lightning speed at which AI has developed in recent years, and the increasing presence it is having in our day-to-day lives, is clear. It is being adopted in a wide range of sectors, including supporting the development of new medicines, making farming more efficient through better provision of data, and identifying perpetrators of crime.
Among businesses, AI is already being used to assist with data analysis, developing content for social media, and as a sounding board to test out ideas. Tasks that might have taken hours in the past can now be completed within minutes with the help of AI. It is saving time for people, organisations and businesses, releasing them to be more productive and more efficient. With all of these benefits, surely all businesses are using it regularly?
This doesn’t appear to be the case. A recent British Chambers of Commerce survey of 1,200 businesses, predominantly SMEs, found that 43% of firms had no plans to use AI technology. Among the smallest companies (with fewer than 10 employees), this rises to 47%. However, among larger organisations (more than 250 employees), this falls, with only 17% saying that they had no plans to use AI technology.
Looking into some of the barriers as to why AI is not being used, some businesses have highlighted lack of relevance, investment cost, reliability, lack of understanding, and risks around scams or privacy. In short, smaller businesses are unsure how AI can significantly benefit their business and, at the same time, avoid any unnecessary risk.
So, what’s the solution? We need more awareness, training, advice and support. Firms need to know what AI is and how they can use it effectively, and safely. There must be access to reliable, effective and up-to-date training to help them maximise the benefits. To boost business growth, Government must ensure that firms have the right support in place and that the business voice is represented in policy-making.
While there are, undoubtedly, a huge number of benefits of AI, the challenges that it presents cannot be ignored. Issues around accuracy, intellectual property, bias, and threats of scams and cyber attacks need to be taken seriously.[1] There’s an urgent need for consistent and expert training, with the Government leading by example, so that these risks can be mitigated.
Helping firms to engage with Government will ensure that Ministers and officials know what’s needed for AI to benefit businesses and their workforce. We need an AI Champion for SMEs, right at the heart of Government, to advocate for the needs of business and provide targeted support where needed. Business concerns could be flagged to policymakers and addressed quickly, and at an early stage. With around 5.5 million small businesses in the UK, ensuring that their views are heard in Westminster is vital.
If we get this right, and if SMEs can get the support they need to adopt AI and benefit from it, we can ensure that all businesses are able to stay on this digital journey and continue to thrive.
[1] Some examples of the risks of AI:
https://www.gov.uk/government/publications/ai-regulation-a-pro-innovation-approach/white-paper https://www.forbes.com/sites/rscottraynovich/2023/06/22/the-top-five-real-risks-of-ai-to-your-business/
