Tech bosses have told LBC they fear small businesses could be left behind unless they embrace the ever-growing use of artificial intelligence.
Research carried out by ANS (ANS.co.uk) in Manchester shows smaller companies are being hampered by a lack of expertise and high costs, but with a growing expectation by customers for AI utilisation.
Kyle Hill, Chief Technology Officer at ANS, told LBC: "AI is happening to people, but they aren't as ready to adopt it as we think they could be. We're seeing with the younger demographic especially, the digitally native as we like to call them, just expecting that AI technology to be part of their everyday and some of the older generation not necessarily embracing it.
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"So really those sort of drivers are key when we look at smaller businesses in particular. They are very cost sensitive as the research suggests, so being able to drive those operational efficiencies at productivity is going to have a big gain for them in the long term. The challenge we're seeing is identifying those initial scenarios to generate those productivity gains."
The research carried out by ANS sampled more than 1,000 IT decision makers and shows UK businesses are still facing major challenges when it comes to adoption. Lack of expertise is the top barrier (35%), with high costs (30%), and uncertainty around ROI (25%) followed closely behind.
Significantly, the research reveals stark disparities between the challenges faced by large and small businesses. Larger businesses, often equipped with greater financial resources, are primarily concerned with regulatory compliance (34%) and data security (31%) due to the management of sensitive customer data and more stringent legal requirements.
Meanwhile, smaller businesses face more fundamental challenges, with high costs (22%), uncertain ROI (25%), and lack of expertise (27%) standing as key barriers, emphasising a stronger need for financial support and skill development.
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Mr Hill told LBC: “AI is no longer just a buzzword – it’s rapidly becoming a cornerstone of digital transformation. With recent announcements on the UK Government’s increasing investment in the technology, demand for AI adoption will definitely be on the rise. But our research shines a light on the major challenges that still stand in the way for businesses of all sizes, which must be tackled before they consider scaled AI adoption.
“The first step for businesses, and the wider government initiatives, should be looking at the barriers and understanding how to tackle them. Discussions at the board level are critical in driving investment and adoption. The more companies discuss AI, the more likely they are to integrate AI into their operations and realise its benefits. Tackling these barriers now, rather than later down the AI adoption pipeline will enable businesses to maximise the value of AI in a safe and responsible way.
"AI is actually quite revolutionary and it is going to reach all corners of our lives and the way that we interact with things, it's just popping up in so many different scenarios. There's so much investment and innovation going on that it really is going to be game changing."
