Most UK firms now use AI as SMEs see roles unchanged

More than half of UK firms are now actively using artificial intelligence, according to research by the British Chambers of Commerce (BCC) and Atos. Small and mid-sized businesses report little change to workforce size so far.

The survey found 54% of firms are using AI, up sharply from earlier BCC research showing 35% in 2025, 25% in 2024 and 23% in 2023.

About 94% of respondents were SMEs. Among SMEs using AI, 95% said it had no impact on workforce size over the past year, and 86% said job roles had remained unchanged.

The findings appear in the Future of Work: AI in the Workplace Report, based on analysis by the BCC Insights Unit and the University of Essex ESRC Centre for Micro-Social Change.

Uneven adoption

Adoption varies by sector and business type. Larger SMEs and B2B professional services firms lead in AI use, while smaller firms, consumer-facing companies and manufacturers are adopting it more slowly.

Most SMEs are using AI to support staff rather than replace them. The headcount and job-role data suggest businesses are adding new tools to existing structures, rather than redesigning teams or workflows at scale.

The research also distinguishes between firms using generic AI and those developing tailored systems. It found that one in ten SMEs are adopting bespoke AI, and they are more likely to expect headcount reductions than those using general-purpose tools.

Another sign of potential change appears as adoption matures: 14% of SMEs investing in AI training anticipate headcount reductions over the next 12 months. The report links this to more advanced AI use and wider restructuring.

Productivity expectations

The report also highlights differences in productivity expectations. SMEs already using AI reported net productivity improvement expectations of +71 percentage points, while firms planning to adopt AI-or unsure whether to do so-were far less optimistic.

It describes this gap as evidence that experience and maturity matter: businesses that have already experimented with AI appear more confident about returns than those still evaluating the technology.

Patrick Milnes, head of policy: people and work at the BCC, said the data shows how quickly AI has spread through the business community.

"Our research shows AI has rapidly moved from the margins of business to the mainstream."

Milnes said businesses are "reaping the productivity benefits" and that, for many SMEs, AI is helping them work smarter, improve decision making and free staff to focus on high-value tasks.

He added that to "future proof both firms and their workforces", government must work closely with business to build AI skills, support adoption and track the impact on workforces. "With the right support in place, AI can be a powerful driver of growth, productivity and opportunity across the UK economy."

Policy proposals

The report sets out recommendations for government and business, including an AI Labour Market Observatory to monitor the impact of AI on jobs and a network of AI champions to support SME adoption.

Other proposals include using Growth and Skills Levy funds to subsidise AI literacy training, and introducing tax credits or grants for business investment in AI technologies and workforce training.

It also urges a national push on AI literacy across education and lifelong learning, with partnerships involving businesses and local authorities.

The BCC has already launched an AI Academy across its chamber network. The programme began in October 2025 and focuses on practical adoption for member firms.

Michael Herron, head of Atos UK and Ireland, said AI will reshape work as adoption spreads.

He said the technology has "great potential" to improve productivity and wealth, but will also have a "fundamental impact" on the workforce. He added that adoption must benefit society and the economy by "putting people at the heart of AI-related change".

Herron said Atos is doing this through "a pioneering approach to AI career paths for graduates and apprentices", reflecting changes in entry-level technology roles. "Some roles will disappear, but many others will be created," he said.

He added that political and industry leaders must help the workforce embrace the "new AI-age" by sharing knowledge, investing in training and skills, and developing strategies to reshape the workforce.

Government response

AI Minister Kanishka Narayan said the government is tracking how AI affects employment, and pointed to new cross-department work focused on the future of work.

Narayan said it is "great to see businesses embracing the opportunities" AI can create, and that the next step is ensuring companies of every size feel confident using it day-to-day.

He said the government has set up a cross-government Future of Work Unit to monitor the impact of AI on jobs, and is helping 10 million people build practical AI skills so businesses can work smarter, stay competitive and spread the benefits across the economy.