UK SMEs warned to prioritise AI, cyber & skills by 2026

UK small and medium-sized enterprises will face growing pressure in 2026 to overhaul their technology strategies, according to new forecasts from Converged Solutions Group. The company expects artificial intelligence, cybersecurity and skills shortages to reshape how smaller businesses work with managed services providers.

Converged Solutions Group said many SMEs still approach technology as a collection of tools rather than as a structured strategy. The firm warned that this attitude will carry increasing risk in the coming year as digital systems underpin more core operations.

AI adoption gap

The company forecast that artificial intelligence will be "everywhere" in the SME market in 2026 as tools and platforms proliferate. It warned that most firms will remain unprepared to use the technology effectively.

Converged Solutions Group said the main barrier will not be access to AI software. Instead, it expects a lack of clean, structured and accessible data to limit practical use. The firm said poor implementation will increase the chance of compliance issues, flawed decision-making and productivity losses.

The company advised SMEs to invest in data readiness, governance, architecture, people and integration in advance of AI roll-outs. It said teams need a clear understanding of business goals before they assess where AI could play a role.

The group also cautioned managed services providers against promoting AI as a simple, plug-in solution. It said MSPs should focus on building reliable foundations in client environments before they introduce advanced tools.

Rising cyber pressure

Converged Solutions Group expects cyber threats to keep escalating in 2026, alongside tighter regulatory expectations. It said the UK is beginning to align more closely with the EU on business compliance requirements.

The firm predicted that a failure to address cyber compliance will carry a greater risk of penalties as well as reputational damage. It said SMEs should view cybersecurity as a basic operational requirement in the same category as payroll or tax.

The company warned that many smaller businesses will still treat security as optional. It said organisations need a well-tested cybersecurity and business resilience plan that fits their specific operations and places resilience at the centre.

Converged Solutions Group said MSPs should support clients in meeting minimum compliance standards and in maintaining appropriate operational practices. It added that providers may need to disengage from customers who refuse to comply.

Hybrid work strain

The group said remote and flexible work patterns will remain "here to stay" in 2026. It noted that many SMEs still rely on outdated technology, obsolete policies and fragmented systems to manage distributed workforces.

Converged Solutions Group linked modern working patterns with increased dependence on cloud-native platforms, zero-trust security models and unified communications. It said MSPs must first understand a client's current set-up before proposing changes.

The firm said this assessment may lead to difficult discussions about sunk costs in legacy technology. It argued that these conversations are necessary if organisations want practical and sustainable hybrid work arrangements.

Skills as 'currency'

The company described digital skills as the "new currency" for SMEs. It said technology investments without matching capability represent wasted spend.

Converged Solutions Group warned that adopting systems such as AI without sufficient knowledge can distract staff, strain budgets and heighten security exposure. It said smaller firms will struggle to recruit and retain specialist talent unless they commit to upskilling and explore new ways of funding and structuring training.

The group said each new technology should have a defined purpose in terms of business productivity. It advised executives to focus on training and measurable output when they integrate new tools.

The company also recommended that leadership teams appoint internal champions for new systems. It said MSPs should work with customers to bridge skills gaps, explain the role of new technologies, and ensure redundant systems are decommissioned when appropriate.

Sustainability criteria

Converged Solutions Group expects sustainability requirements to influence technology procurement more directly in 2026. It said carbon-conscious operations are moving from preference to obligation for many SMEs.

The firm predicted more scrutiny of digital sustainability, including energy-efficient hardware and green hosting services. It said businesses also need to examine the materials and waste linked to their technology use.

The company highlighted the role of plastics and petrochemicals in global supply chains. It cited estimates that around 6% of total oil consumption goes into plastics production, including raw materials and manufacturing energy, with demand forecast to grow significantly by 2060 if recycling technology does not advance.

Converged Solutions Group said the circular economy is becoming more important in both domestic and workplace settings. It urged businesses to look at the full impact of their practices, which includes reducing the use of petrochemical-derived materials and products.

The firm said MSPs should seek to lower their dependence on petrochemicals in their own supply chains. It pointed to plastic use, transportation and shipping emissions as key areas. It added that providers should work with customers on changing ordering and consumption patterns and on offering repurposing, upcycling and recycling as part of their services.

From talk to delivery

Converged Solutions Group said many SMEs still view technology change as aspirational. It argued that the coming year will leave less room for experimentation without clear plans.

"As always this isn't about tools: it's about people, planning, readiness and following through. SMEs must stop dabbling and start designing their tech strategy around structured data, secure systems, and skilled people. MSPs must stop just selling products, and start being reactive and leading on service. Ultimately, 2026 is the year to stop talking about "digital transformation" and start delivering it, with discipline, urgency and purpose," said Lucy Harvey, PR & Communications, Converged Solutions Group.