Small firms increase cybersecurity, eye AI adoption in 2025

A new survey of small business owners in the UK has found increased investment in cyber security and a growing intention to adopt artificial intelligence in business functions during 2025.

The survey, carried out by Bionic and involving 500 UK-based small and medium enterprise (SME) owners, examined attitudes toward cyber security threats and the implementation of AI technology across various sectors.

According to the findings, more than half of those surveyed (53%) reported an increase in their spending on cyber security measures during 2024, with 8% stating they had increased spending significantly and 45.4% recording a slight increase. A further 42.4% said they had made no increase in spending, and 4.2% were unsure about their organisation's outlay.

Industry-specific analysis revealed that the IT and communications sector reported the highest rate of increased spending, with 10% of respondents from that sector stating they had increased spending significantly and 52% suggesting a slight increase. The health and social care sector, alongside transport and logistics, also reported higher levels of increased investment in cyber security.

Despite the increased focus on security, 80% of surveyed businesses said they were not targeted by a cyber attack in 2024. This contrasts with UK government figures from the same period, which reported that 50% of businesses had experienced some kind of cyber attack, most commonly via phishing attempts.

Addressing the apparent discrepancy, Laura Court-Jones, Small Business Editor, commented: "In contrast to our research, the UK government statistics show 50% of businesses reported some kind of cyberattack in 2024, with the most common being basic phishing attacks. This could indicate there is a lack of awareness around the types of cyberattacks small businesses could face. Something as simple as a malicious link in a phishing email could easily go missed by many. And with cyberattacks becoming increasingly common, and SMEs as easy targets, business owners should educate themselves and their employees on what to look out for to keep their business safe."

On the adoption of AI, 74% of SME owners said they intended to incorporate artificial intelligence into their business functions to some extent during 2025. Of these, 38.6% indicated they were moderately likely to adopt AI, 25% said they were very likely, while 10.4% described themselves as extremely likely to implement AI. In contrast, 19.2% of those polled said they would not be likely to use AI at all, and 6.8% were unsure.

When asked about their main concerns regarding the use of AI in business, inaccuracy emerged as the most prominent issue, cited by 24.8% of respondents. This was followed by knowledge gaps within the workforce, highlighted by 22.8%, and the lack of regulation, noted by 19.8%. Other concerns included the perceived expense of AI (10.8%), the belief that there is no room for AI in their business (8.8%), fears regarding job replacement (8.6%), and concerns about damaging customer relationships (4.4%).

Commenting on the reasons behind these concerns, Les Roberts, Senior Content Manager at Bionic, said: "Privacy and security could also be an issue, as handling customer data through AI could increase the risk of breaches or misuse. Some business owners may fear that AI could reduce the personal touch that sets their business apart, especially in customer service. There may even be a simple resistance to change - adopting new technologies can be intimidating, particularly if the current processes are working well enough. These factors combined can make small business owners hesitant to embrace AI despite its potential benefits."

The report also notes that among those tending towards AI adoption, a quarter (25%) were "very likely" to start using AI in their operations this year. However, concerns over regulatory frameworks, workforce capability, and potential inaccuracies remain key barriers for many contemplating technology integration.

The Bionic SME Insights Report concludes that cyber security investment and AI adoption are set to influence strategic decisions for UK small businesses in 2025, though awareness and knowledge gaps could affect the pace and effectiveness of these changes.