UK Small Businesses Leverage AI for Growth and Productivity

Small businesses in the UK may be at the forefront of adopting Artificial Intelligence (AI) as a means to boost productivity and growth, according to Ruchi Sharma, Vice President, UK Commercial at American Express.

The Government's research shows that AI adoption has been slower among small firms compared to larger companies due to lack of time and budget. However, this trend may be changing with the growing popularity of accessible AI tools that give entrepreneurs valuable time back.

According to American Express' annual Business Barometer research, more than a third (36%) of SME owners surveyed cited their own lack of capacity as the single biggest barrier to growing their business. This capacity is often lost to routine work, with entrepreneurs spending an average of 11 hours per week on administrative or finance-related tasks.

AI adoption among small businesses is still in its infancy, with nearly one in five (18%) saying AI still feels like a blind spot they know they should be making more of. Nevertheless, the data suggests that SMEs are beginning to harness the potential of AI to amplify their capacity and learn new skills.

As part of its commitment to backing small businesses, American Express launched an AI training initiative with non-profit Generation earlier this year to help small firms build practical AI skills in their day-to-day operations.