AI adoption among the UK’s small businesses has nearly tripled in the past two years, according to forthcoming research from the Federation of Small Businesses (FSB), although concerns over data security, liability and copyright continue to hold many firms back.
The research found that 55% of small firms are now using AI, compared with just 20% in 2023. However, 92% said they had concerns about the technology, up from 73% two years ago. The biggest worries cited were inaccurate responses (54%), security risks (39%), abuse of intellectual property rights (39%) and a lack of transparency around how AI models are trained (38%).
Despite these concerns, the benefits are becoming increasingly apparent. Nearly six in 10 respondents (59%) reported productivity gains from using AI, while 24% said it had increased revenues and 22% credited the technology with helping to grow their business. FSB estimates that wider adoption could add more than £42bn to the UK economy each year.
Tina McKenzie, Policy Chair of the FSB, said: “There is a healthy realism among small businesses when it comes to AI, and it’s encouraging to see so many already finding practical ways to use it to save time, improve productivity and grow.
“If we can provide that, the prize is enormous. AI has the potential to help small businesses work smarter, reach new customers, develop new products and compete more effectively, unlocking benefits not just for individual firms but for the wider economy too.”
The FSB is now urging the Government to introduce clearer rules around data use, copyright and liability, alongside practical support and incentives to help small firms adopt AI with confidence.
