According to new research*, almost 1 in 3 (31%) UK small businesses are scared to implement AI, despite acknowledging the many benefits of onboarding the technology. 

The survey of 1,000 business leaders at British small businesses, 41% of small firms want to integrate AI into their business, but don’t know where to start. This paralysis means that small businesses – which form the backbone of the UK economy (accounting for 99.2% of the nation’s total business population) – are missing out on improvements to costs, efficiency and overall work satisfaction that they themselves say AI can bring about. 

Employee pushback and personal pressure escalate AI worries 

Small business owners don’t want to risk any mishaps or interruptions in their business, which is intensifying their AI-anxiety. 38% say that the success of the business comes down to them, so they can’t take a risk with AI, while a similar number (39%) say that it’s better for them to stick to what they know, which excludes AI. 37% also say that the reputational impact of getting AI wrong is just too much of a risk. 

Employee opinion is another concern for small businesses – 33% find it difficult to encourage employees to use AI at work and more than a quarter (26%) even say that they’ve had direct pushback from their team. Even when employees are onboard with using the technology, concerns remain, as 43% of small businesses worry that unauthorised use of AI by employees could hurt the business. 

Small firms say their size is a disadvantage for AI implementation 

Small businesses naturally have different opportunities and challenges than larger businesses, and AI implementation is no exception. Many small businesses feel that they’re at a disadvantage, with almost half (48%) saying they can’t compete with large businesses when it comes to onboarding AI. Understandably, 41% also think allocating the necessary budget to bring AI tools on board is easier for large businesses. 

AI fears mean small businesses miss out on improved efficiency and happiness 

Despite these worries, small businesses acknowledge there’s plenty of upside to successful AI implementation, that their fears may prevent them from reaping. In fact, half (49%) believe onboarding AI would help take their business to the next level. 

Small businesses, who are often bogged down in day-to-day tasks and don’t have time to focus on long-term strategy, say the biggest benefit of onboarding AI is increased efficiency (49%) followed by a reduction in time-consuming, low-value work (44%). This in turn frees up small business owners to think bigger picture – with almost a third (30%) saying that AI will improve innovation and product development, and a similar number (29%) saying it will help decision making. 

More than 2 in 5 (41%) cite cost savings as another potential benefit, showing that while small businesses feel they’re at a disadvantage cost-wise in bringing the technology onboard, in the long-run it could improve their financial position. In fact, almost 2 in 5 (38%) believe that AI could improve performance so much that it would lead to better benefits and financial incentives for their employees. 

Small business owners also say that AI can make work more enjoyable for them and their team – 43% say that AI use will make work more meaningful, as AI will handle mundane tasks. 1 in 3 (35%) believe AI will provide a better work-life balance, and a similar amount (31%) say it will improve job satisfaction and happiness at work. A quarter (24%) even say that AI opens up the door to a four-day work week. 

There are even some areas where small businesses feel they have the upper hand compared to larger businesses – 41% consider there to be more flexibility and freedom to integrate AI in small businesses. More than 2 in 5 (44%) also believe that using AI could level the playing field between small businesses and larger businesses. 

To help their onboarding, small businesses want easy-to-use AI products and features

To reap the benefits of AI, while avoiding many of the pitfalls of implementation that they fear, small businesses are keen to integrate AI tools that are less complicated, risky or costly. Easy-to-use AI products are paramount to small businesses (40%), while 29% say they’d like AI features within products or services that the business already uses. 

Small business owners acknowledge that they could need outside help – 29% say AI integration consultations would be beneficial in their AI journey, while a quarter (26%) are keen on government grants and subsidies (26%). 

To support small businesses as they tackle AI adoption, Indeed and Small Business Britain will continue their ‘People for Business’ programme, helping small firms overcome challenges in order to fulfil growth ambitions. As part of this programme, small businesses will have access to a free webinar on AI implementation. 

Caroline Barbour, Senior Marketing Manager for SMB at matching and hiring platform Indeed said:  “Small businesses are the backbone of the UK’s economy and it’s imperative that they are able to grow and adapt to new technologies. Small business owners are understandably nervous about tackling AI, but at the same time, acknowledge the many benefits AI usage can bring about for their business. It’s important that small businesses have the support they need to navigate this wave of AI adoption, and are set up with easy-to-use tools, or features that integrate within their existing product suite. 

“The People for Business programme’s free webinar on AI will give small firms the information, support and guidance they need to confidently implement AI, and take their business to the next level.”

Michelle Ovens CBE, founder, Small Business Britain said:  “AI is clearly one of the biggest generational changes on the horizon for the world. Despite the apprehension and overwhelm that many people can understandably feel, it is important small businesses keep the bigger picture in view and lean into the opportunities out there to avoid being left behind. Small businesses certainly need as much support as possible to navigate this journey and better understand and explore the potential AI can bring.”