Small businesses in UK & Ireland face barriers to AI adoption

Small businesses in the UK and Ireland are eager to adopt digital tools and artificial intelligence (AI), but many are held back by confusion, lack of confidence and inadequate guidance, according to recent research involving over 8,000 European companies.

Adoption barriers

The survey found that more than a quarter of UK and Irish small businesses see uncertainty about which digital tools to use as a significant obstacle when considering AI and related technologies. About 26% of respondents reported lacking the skills or confidence required for digital transformation, while another 20% cited limited time and resources as the main barrier to adoption.

Older, established businesses are particularly hesitant to pursue AI, with reluctance rates reaching 60% among companies operating for more than a decade. For comparison, only 25% of all surveyed businesses report having no current plans to use AI.

Trust issues

Nearly half of small businesses say they trust AI less than work led by humans. The most commonly cited concerns include data security, accuracy, and maintaining a consistent brand voice. In addition, 38% believe that AI will either not make them more competitive or may even diminish their competitive advantage over the next two years.

Despite this, AI technology is already gaining some momentum. According to the findings, almost one in five small businesses are using AI extensively, while roughly a third are experimenting with it in some capacity. However, more than one in five decision-makers feel they do not know enough to make an informed move on the subject.

Demand for support

The need for clear and accessible support was a recurring theme in the responses. Approximately 35% of businesses said that step-by-step guidance would help them progress further with digital tools, and 28% requested clearer advice on which tools to adopt. Around 38% expressed a desire for dedicated training or workshops related to digital technology and AI.

Businesses typically rate their confidence in selecting and using digital tools at just 6 out of 10, signalling the need for improvement in the resources available to them.

Knowledge gap

The survey highlighted a significant knowledge gap. About 30% of small businesses said they do not know which digital tools they should be using, and more than one in four noted a lack of digital skills or knowledge as a barrier. This lack of clarity is viewed as more limiting than a lack of ambition or interest in technology itself.

"Technology, especially AI, has outpaced the capacity of many small businesses to keep up. What we're seeing isn't a gap in ambition or motivation, it's a gap in comprehension and perception. Small businesses understand that AI has the potential be transformative, but the current eco system too often assumes a level of digital fluency that simply isn't there yet. When we simplify the path and make tools genuinely usable, AI stops being intimidating and starts becoming a catalyst for creativity, efficiency and growth. The opportunity isn't just to help small businesses adopt AI, but to empower them to shape what's possible with it," said Claudio Corbetta, Group CEO, team.blue.

Half of the respondents across Europe stressed the need for more accessible training and step-by-step support to aid their digital journey. In the UK and Ireland, the picture was consistent with broader European trends.

"Digital tools only matter when they empower the people behind them," said Jonas Dhaenens, founder and president, team.blue.