Most SMEs Still Struggling to Embrace AI

July 25th, 2024

The majority of SMEs are still not using artificial intelligence, despite a growing acceptance by businesses that it will help boost productivity

Research carried out by the British Chambers of Commerce Insights Unit, in partnership with specialist recruiter Pertemps Network Group, shows:

• 43% of firms have no plans to use AI technology
• 25% of businesses are currently using AI
• Customer facing businesses (B2C) are even less likely to adopt AI, with 50% stating they have no plans to use this technology
• 42% of companies say they believe AI will increase their productivity overall, while almost none (2%) expect it to cause a decrease.

The research found that, overall, 43% of respondents had no plans to use AI at all, 25% said they were currently using a specific AI technology, while 8% were not sure if they were, and 24% planned to in future.

There are significant sectoral differences. The new data shows that B2B companies are most likely to be currently using AI (33%). Meanwhile, manufacturing firms are the sector least likely to be using AI technology (19%) – with nearly half of manufacturers (49%) also saying they have no plans to adopt the technology, while just 24% intend to use it in the future. 

The findings are part of the landmark BCC/Pertemps Employment Trends Report 2024, which examines major trends impacting the labour market, including changing skills needs and increasing occupational health requirements. The report also found:

• Only 11% of responding businesses feel their current training arrangements are allowing them to meet their future skills needs.
• Four in ten (39%) say they have seen an increase in the use of occupational health by employees.

Carmen Watson, Pertemps Network Group Chair, said:  “AI has the potential to significantly benefit many industries but, as our research with the BCC shows, there is still a nervousness about its applications.

“One of the areas it can help is addressing skills shortages. Our research shows that many businesses do not feel there are measures in place to address the current shortages and ensure they have a talent pipeline for the future. Only by working together, collaborating across all sectors and disciplines, and embracing new technology, can we tackle this.

 “AI will play a crucial role. It can help free-up time for experienced professionals who, freed from some of the more mundane and process-driven tasks on their to-do lists, can spend time upskilling themselves and, also, mentoring those younger professionals coming through.

“It remains vital that all employers look at their offering to workers, ensuring there are able to access additional services and support, so that once you have attracted the right talent, the work environment you are offering is inclusive and supportive.”

Shevaun Haviland, Director General of the British Chambers of Commerce said:  “AI technology is fast becoming a key part of the business landscape. It will have a huge impact on employment trends going forward.

“Our data is a stark reminder of the challenge ahead to get all firms equipped for the digital future. 

“It’s encouraging to see 25% of businesses are now using AI – that’s progress from our survey this time last year. But nearly half of firms still don’t have plans to use the technology.

“Without direct action by the Government to help SMEs – many firms risk being left behind. Businesses need advice and support to make the digital steps forward. 

“That support on AI will also help firms feel more confident in their future skills planning. The pace of technological change is speeding up, not slowing down. It’s vital that all businesses are given the opportunities to embrace AI”.