UK small businesses urged to accelerate AI adoption to unlock growth potential
Google has warned that many UK SMEs risk falling behind in the AI revolution, with over half admitting they’ve had to pause “game-changing” ideas due to lack of time, resources or skills.
Among the findings:
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Only 31% of SMEs currently use AI tools, despite 86% being aware of their potential
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AI adoption could unlock up to £198 billion in productivity gains across the SME sector
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Key barriers include lack of confidence, data privacy concerns and limited understanding of practical use cases
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Early adopters are concentrated in IT and telecoms, while sectors such as retail, hospitality and manufacturing lag behind
To address this gap, Google, the Department for Business and Trade, and NatWest have launched the AI Works for Business initiative — a nationwide tour offering hands-on workshops to help SMEs integrate AI effectively, boost efficiency and free up time for innovation.
These efforts aim to ensure that technology-led productivity and growth reach businesses of all sizes and sectors across the UK, supporting the government’s vision of a more competitive, digitally enabled economy.
👉 Read more: City A.M. – UK small businesses falling behind on AI, Google warns
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