AI is the next major technological advancement. There is huge scope for AI to totally transform how businesses operate, making them more effective and more profitable. But studies show that British small business owners are more wary of AI than their counterparts across the world.
Brits are well known for their scepticism and risk aversion, but could this be a huge mistake, leading them to fall behind international competitors?
What the stats say about AI adoption in British businesses
Despite the uptake of AI in larger businesses being comparable, even potentially higher than their US counterparts, a Gov.uk study found only 15% of small UK companies have adopted at least one AI technology. Given the potentially game-changing impact of AI tools on areas such as marketing, admin and analysis, this is a staggeringly low number.
But why is this the case? It could be down to British business leaders’ expectations on the impact of AI. For example, a British Standards Institution (BSI) study found 69% of business leaders expected manual work to be affected by AI, compared with 90% and 93% in the US and China, respectively. This pattern was repeated in operations, marketing and sales, with the UK lagging behind the US by 10 points or more in each category.
Put simply, British business leaders don’t see the same transformative potential in AI as their peers from other leading economies.
A University of Oxford paper suggests daily use of ChatGPT by the public is 3.5x higher in the US than it is in the UK, with around 40% more people using the tool in something business related. A general lack of use, especially in a professional context could be leading individuals to underestimating the impact of AI in the short to medium term.
How are businesses adopting AI?
There is an array of ways business can integrate AI. Evidently, parts of the world are further ahead than the UK in both how they implement AI and how they see AI changing business and society. Natural language programming (NLP) reduces the barriers to using super advanced AI technology to close to zero. Business owners with no technical knowledge can begin using AI to improve and grow their business.
Self-employed coaches and consultants are creating AI versions of themselves, scaling businesses are automating processes with tools like Make.com and entrepreneurs are leveraging ChatGPT or Claude to produce content. Brand and marketing visuals are being created in minutes with tools like Looka and Midjourney.
For businesses handling lots of data, machine learning and AI data analysis can be game-changing. They can perform more and potentially far more accurate calculations making efficiency savings across multiple departments. For certain-sized companies, this could represent millions of pounds in savings, which likely explains why larger businesses have been more likely to adopt the technology faster.
What should British businesses do about AI?
Small businesses and entrepreneurs based in the UK need to wake up to AI’s potential. General AI use is lower in the UK than the US. Expectations around AI’s impact on work are lower in the UK than the US, China and many parts of Europe. This means the business environment is simply less forward-thinking in the UK and this can seep into the mindset of business owners.
Entrepreneurs and business leaders should be looking overseas for inspiration. What are similar businesses or those operating in the same industry doing with AI in the US? American small businesses are using AI for customer service, with chatbots handling basic queries. They’re streamlining their marketing with AI-powered content creation and social media management. Many are using AI tools for bookkeeping, tax preparation, and financial forecasting.
UK business owners can start small. Pick one area of the business that needs improvement – perhaps something administrative that takes too much time. Research AI tools specifically designed for that task. Test the tool thoroughly, measure the results, and then expand to other areas if successful.
Time to embrace AI or risk falling behind
British businesses pride themselves on quality and innovation, yet many are missing out on AI’s benefits. While careful consideration of new technology is wise, excessive caution could leave UK companies struggling to compete in the global marketplace.
The gap between AI adoption rates in the UK versus other major economies should worry British business owners. As international competitors use AI to cut costs, improve efficiency, and serve customers better, UK businesses risk losing their competitive edge.
The message is clear: UK small businesses need to overcome their AI hesitancy. Start exploring how AI could benefit your business today. The technology is accessible, affordable, and increasingly essential for staying competitive in the global market.