AI benefits UK SMEs but generational divide slows full adoption

AI adoption in the workplace is progressing at a slower rate than expected, with older generations in particular facing challenges in adapting to new technology.

Research from Employment Hero, collected from 1,000 business leaders and 1,200 employees representing UK small and medium-sized enterprises (SMEs), indicates that almost a third (32%) of professionals surveyed have never used AI in their work environment.

The Work That Works report explores generational divides and overall trends in AI uptake, showing younger employees in SMEs are substantially more likely to use AI tools frequently. The data reveals 39% of millennials (Gen Y) said they use AI daily or several times a week, with Gen Z close behind at 30%. Usage among older generations drops notably, as only 17% of Gen X and 13% of baby boomers report using AI at least several times per week.

Younger employees ahead

These figures suggest a clear generational divide in workplace technology engagement. The report's insights highlight that while AI is beginning to transform working patterns, this transformation is not occurring evenly across age groups within UK SMEs.

For those who have adopted AI, the impact on work processes is already visible. Two-thirds (66%) of AI users reported improvements in the quality of their work, and 62% said AI use made them feel more creative. The same proportion - 62% - also felt less overwhelmed by their workload since beginning to use AI. Additionally, 57% of respondents reported procrastinating less with AI, while 51% noted they worked fewer hours after incorporating AI tools into their daily routines.

Institutional support lacking

Despite these perceived benefits, only 24% of the entire respondent group believe their company is making significant investments in AI capabilities. This suggests a gap between individual experimentation with AI and formal organisational efforts to support widespread adoption of such tools.

"For technology to drive meaningful change, it needs to be in the hands of everyone. That means investing not just in access to tools, but in the training, support and confidence people need to actually use them. Closing the AI advantage gap is essential - not just for the success of individual companies, but for improving productivity across the UK economy. We need a trickle-down, human-centred approach to AI adoption. One that starts with leadership, but quickly and intentionally reaches every corner of the business."

These remarks from Kevin Fitzgerald, Managing Director at Employment Hero, reflect concerns that without organisational commitment to training and support, the positive impacts of AI may remain restricted to early adopters, particularly those in younger demographics.

Productivity and well-being

Early adopters of AI in SME settings are indicating not just greater productivity but improvements in well-being. The report's findings that a majority of regular AI users report working fewer hours and feeling less overwhelmed suggest that AI can help balance workloads and reduce workplace stress, provided employees are able and willing to make use of these technologies.

However, the report also makes clear that these benefits are not being shared equally, highlighting the need for more inclusive approaches to AI training and access in the workplace. The call from Fitzgerald for a "trickle-down, human-centred approach to AI adoption" points to the necessity of workplace cultures and leadership teams actively promoting and supporting AI learning across all workforce segments.

The survey included business owners and employees from organisations with fewer than 1,000 staff, and was conducted across a representative range of industries, regions, and demographics in the UK, providing a cross-sectional view of SME attitudes and experiences.

The insight that only around a quarter of SMEs are significantly investing in AI points to a broader sectoral challenge for those seeking to accelerate productivity gains and workplace satisfaction through technology. Current trends suggest that while some employees - largely younger - are benefitting from AI now, broader institutional adoption may be required to close gaps and ensure benefits are shared across workforces of all ages.