Artificial Intelligence (AI) continues to dominate the business headlines, with new tools and developments appearing almost daily. Yet despite the growing attention, many small businesses are still hesitant to embrace it.
Why are businesses holding back from using AI?
The report, based on responses from more than 1,300 micro and small businesses across the UK, highlights that many organisations recognise the importance of digital technology, yet far fewer have successfully introduced AI into their everyday operations.
The reasons are understandable. More than half of businesses surveyed cited cost as the biggest barrier, while many also pointed to a lack of skills, concerns around data privacy and security, and simply not having enough time to explore the options available.
There were also significant differences between sectors. Information and technology businesses were far more likely to be using AI than businesses operating in construction or agriculture, while larger SMEs were considerably more likely to have adopted AI than sole traders or very small businesses.
Perhaps the biggest concern is that many of the smallest businesses risk being left behind, despite often having the most to gain from improving efficiency.
The biggest challenge isn't the technology
From speaking to business owners, one issue comes up time and time again.
Many businesses start by asking, "Which AI tool should we use?" when the better question is, "What business problem are we trying to solve?"
Introducing AI simply because everyone else seems to be doing it rarely produces meaningful results. Like any investment, AI should support your business objectives rather than become an objective in itself.
Whether your goal is reducing administration, improving customer service, speeding up internal processes or giving your team more time to focus on clients, having a clear purpose should always come first.
Before investing in new software, it's also worth looking at the technology you already use. Many everyday business applications now include AI features that are often overlooked. Microsoft 365 includes Copilot, Google Workspace offers Gemini, Xero has introduced Jax to assist users, and Apple is rolling out AI features across Siri and its Mac devices. You may already have access to powerful AI tools without paying for additional subscriptions.
Making AI work for your business
If you're considering introducing AI into your business, a structured approach is far more likely to deliver long-term value than rushing into the latest technology. Here are a few practical principles worth following:
1. Start with clear AI objectives
Think carefully about what success looks like before choosing any AI software. If you know exactly what you're trying to improve, selecting the right tools becomes much easier.
2. Review your existing AI processes
AI cannot fix inefficient or poorly designed processes. Before automating anything, understand how your current workflows operate and identify where technology could genuinely save time or improve quality.
A useful exercise is to map out each stage of a process and identify whether it is human-led or could be AI-assisted. Challenge every task that currently relies on manual input by asking, "Does this genuinely require a lengthy amount of time?" The aim isn't to remove people from the process, but to reduce repetitive work while keeping human involvement where it adds the greatest value.
3. Start small with AI tools
Rather than introducing AI across the whole business, trial it on one task or within one department before rolling it out more widely.
For example, AI could draft meeting notes, summarise lengthy documents, help answer customer enquiries or create first drafts of marketing content. These low-risk tasks allow your team to build confidence while you measure the benefits before expanding its use.
4. Bring your team with you
Employees need to understand why AI is being introduced and how it will help them. Training is essential, not only on how to use AI tools but also on their limitations. AI can occasionally produce inaccurate information and should always be used alongside human judgement.
The businesses seeing the greatest return from AI are not replacing staff. Instead, they are removing repetitive administrative work so employees can spend more time supporting customers, solving problems and focusing on higher-value activities.
5. Review your AI approach regularly
The AI market is evolving rapidly. Tools that seemed impressive a year ago may no longer represent the best solution. Regularly reviewing what you're using, what it's costing and what value it's delivering will help ensure your investment continues to pay off.
Put sensible AI policies in place
As AI becomes more widely used, businesses should establish clear guidelines for employees.
A simple AI policy can help ensure confidential information is handled appropriately, personal data is protected and AI-generated content is reviewed by a member of staff before it is shared externally or relied upon for important business decisions.
Having clear expectations from the outset allows employees to use AI confidently while reducing unnecessary risks.
Quick AI wins to get started
If you're new to AI, don't feel you need to transform every part of your business overnight. Start by using it for everyday tasks such as:
- Drafting emails
- Summarising meetings or lengthy reports
- Creating first drafts of policies and procedures
- Analysing spreadsheets and identifying trends
- Brainstorming marketing ideas and social media content.
Starting with smaller, lower-risk tasks allows your team to become familiar with AI while delivering immediate time savings.
AI should support people, not replace them
One of AI's greatest strengths is its ability to handle repetitive tasks, analyse large amounts of information and generate ideas quickly.
However, it cannot replace experience, commercial judgement or the relationships that businesses build with their customers.
The most successful businesses are likely to be those that use AI to support their people, freeing them from routine administration so they can focus on work that creates real value.
Take a look at Matt’s blogs discussing the benefits of different AI tools here.
Talk to LWA about using AI in your business
If you'd like advice on introducing technology in a practical and cost-effective way, our innovation expert, Matt Jones, would be happy to help. Contact him on 0161 905 1801 or you can email matt@lwaltd.com with ‘AI advice needed’ in the subject header.
To view the full insights report from Enterprise Nation, please click here: https://www.enterprisenation.com/learn-something/one-in-five-small-businesses-regularly-use-ai-new-enterprise-nation-research-finds/