AI Adoption on the Rise Among UK Small Businesses: Unlocking Productivity Gains

Small businesses in the UK are embracing artificial intelligence (AI) tools at an accelerating pace, using them to streamline operations, boost productivity, and drive growth.

Recent research from Professor Ross Brown at the University of St Andrews Business School shows that small and medium-sized enterprises (SMEs) using AI tools can achieve productivity improvements of between 27% and 133%.
The study, based on interviews with nearly 10,000 businesses conducted by the Department for Business and Trade, highlights how AI adoption is transforming the way SMEs operate.

(See full article: Business Matters Magazine – SMEs embrace AI)

How AI Is Helping Small Businesses Boost Efficiency

Professor Brown explained that AI solutions can offer “quick productivity wins” for SMEs by simplifying tasks such as:

• Staff rota planning
• Reducing food waste in small hospitality businesses
• Automating administrative processes

Many of these AI tools are inexpensive, easy to implement, and can deliver immediate efficiency benefits, making them ideal for local businesses and small business owners looking to save time and cut costs.

Small Business Survey: AI Use Becoming Commonplace

Further supporting these findings, a survey by Faire, a wholesale marketplace for independent retailers, revealed that:

• 83% of small businesses surveyed are already using AI tools.
• More than a third are using AI daily to manage tasks.

Popular uses of AI among small businesses include:

• Creating marketing content, such as product descriptions and blog posts
• Optimising inventory management
• Enhancing customer communication

While AI is becoming a daily tool for many, business owners are also wisely cautious about relying too heavily on AI for core strategic decisions, recognising the importance of balancing technology with human oversight.

Why AI Matters for the Future of Small Businesses

AI offers a powerful opportunity for small businesses in the UK to compete more effectively by:

• Saving time on repetitive tasks
• Reducing operational costs
• Improving customer service
• Freeing up resources for growth and innovation

While caution is still warranted — particularly when it comes to decision-making and customer trust — the trend is clear: AI will play an increasingly important role in the future success of SMEs.

Final Thoughts: Embrace AI to Stay Competitive

The rise of AI adoption among small businesses is reshaping the SME landscape in the UK.
Those who take advantage of smart, accessible AI tools can gain a significant edge in productivity, efficiency, and market competitiveness. If you’re interested in learning how AI can help your small business improve productivity and scale sustainably, get in touch with our team — we can guide you on the best tools and practices for success.