A new report suggests that UK small and medium-sized enterprises (SMEs) have the potential to generate up to £78.1 billion in economic value through greater adoption of artificial intelligence (AI). Despite widespread awareness of AI’s benefits, many SMEs face significant barriers to implementation, including skills gaps, lack of clear guidance, and concerns over costs.
The study, commissioned by Microsoft and WPI Strategy, highlights an AI readiness gap among UK SMEs — 55% recognize AI’s potential benefits, yet 46% admit to lacking the necessary expertise or understanding. Without targeted support and investment, many risk falling behind competitors already leveraging AI to improve decision-making, customer service, and operational efficiency.
Industry voices emphasize AI’s critical role in enhancing customer experience, especially during economic uncertainty. Zoe Kelleher of AND Digital noted that AI can deliver smarter personalization and predictive insights, helping businesses retain customers and build loyalty amid turbulence.
The report calls for policy initiatives to improve AI accessibility and literacy among small businesses, including clearer pathways to adoption, affordable tools, and sector-specific awareness campaigns. Stuart Harvey of Datactics stressed that high-quality data is essential for AI success — fragmented or poor data can limit impact, making data governance a strategic priority.
Given that SMEs constitute over 99% of UK businesses and employ more than half the workforce, unlocking AI’s full potential is vital for sustainable growth and global competitiveness. Industry experts urge immediate action from SMEs and policymakers to convert awareness into tangible results, ensuring the UK’s economy remains future-ready.
