Attributed to Ruchi Sharma, Vice President, UK Commercial at American Express
Do small businesses risk getting left behind by the rise of AI? Or are they fuelling a growing wave of adoption as they embrace the opportunity it offers?
Small businesses tend to have less time and budget to adopt new technologies than larger firms. And while the Government’s own research shows the same early gap in AI adoption, the trend may play out differently in this new era – with the potential for AI to power small business growth.
Lack of time is the biggest barrier to growth
AI is not just popular with SME owners because the tools are so accessible. It also gives owners something immensely valuable: time.
Running a small business requires serious hard work and dedication, with entrepreneurs often working long hours to ensure their business survives and thrives. But it often means they’re spread thin across multiple responsibilities – with limited time to focus on growth.
American Express’ annual Business Barometer research, released last month, found that more than a third (36%) of the SME owners surveyed cited their own lack of capacity as the single biggest barrier to growing their business – with much of that capacity lost to routine work. These entrepreneurs said they spend an average of 11 hours per week on administrative or finance-related tasks, roughly six working days a month that could go on growth.
More than a time-saver
The data shows that there’s a clear and critical need amongst business owners to carve out more time for growth, and they’re already turning to AI to win that time back.
Four in five (83%) are using AI in some form and many see it as a practical way to offload routine tasks, and one in five (21%) would go so far as to say that AI is like having another member of staff.
When I speak to small business owners, this comes up again and again. AI has not replaced their judgement or creativity, it has amplified their capacity, letting founders and small teams operate at a level that used to require a far larger team.
It is not just about saving time. For entrepreneurs, who are often making decisions on their own or solving unfamiliar problems, AI tools are providing a valuable source of information. Among those already using AI, nearly a third (29%) say they have used it to learn new skills or get business advice.
But adoption is still in relative infancy, with nearly one in five (18%) saying AI still feels like a blind spot they know they should be making more of.
Powering the UK’s small business economy
Evidently, there is still a fair way to go to grow AI adoption and unlock this opportunity for small businesses. But the implication of this data is still significant. SMEs are the backbone of the UK economy, and with AI adoption in relative infancy, this presents an important opportunity for small businesses to boost their own productivity and growth – and that of the wider economy.
At American Express, we are committed to backing small businesses – that is why earlier this year, we launched an AI training initiative with non-profit Generation, to help small firms build practical AI skills in their day-to-day operations.
Small business owners are some of the most resourceful and ambitious people I meet. AI gives them the opportunity to turn that resourcefulness into even greater impact. The question, then, is not whether small businesses will be left behind by AI, but how quickly we can help more of them seize its potential. If we get that right, the prize will be bigger than more productive businesses: it will be a stronger, more dynamic UK economy.