Artificial intelligence (AI) is a set of technologies that are able to simulate human intelligence and perform complex functions. Popular subfields include machine learning, computer vision and image recognition, data management and analysis, natural language processing (NLP) and language generation, reinforcement learning, etc.
According to surveys, AI adoption in the UK is quite low compared to other countries. The UK’s office for National Statistics Business Insights and Conditions Survey (BICS) reports that only 16% of businesses use AI such as chatbots, spam filters, facial recognition, voice assistants, personalized shopping, autonomous vehicles and robotics.
About 78% of businesses said these AI tools did not apply to their business. Similar stats from a 2022 study by the Department for Digital, Culture, Media and Sport (DCMS) show that only 15% of UK small businesses have adopted at least one AI technology, about 2% are currently piloting AI in their business while 10% plan to adopt it in the future.
Now, let’s discuss AI adoption in small businesses.
Why there is a reluctance to adopt AI.
Many people aren’t willing to trust and accept AI systems in their daily lives and business applications. This is quite obvious in the UK as the majority have refused to adopt AI technologies. However, emerging market countries, such as India, China, Brazil and South Africa, have the highest levels of trust and enthusiasm for AI in the workplace.
Some believe that AI can produce accurate information as well as automate processes but they are concerned about privacy and security. Among businesses that use AI in the UK, about 40% use external AI solutions, 40% develop their AI in-house, and 20% choose to outsource their AI. Many companies are skeptical about using third-party AI.
These tools can help to improve efficiency, save costs, automate workflows, reduce human error, etc. But a large majority of businesses seem to believe the risks may outweigh the benefits of AI systems. The risks typically include cybersecurity breaches, bias and discrimination, deskilling and job loss, data privacy, compliance, etc.
Which industries said AI technologies aren’t applicable to their business?
Only a small percent of businesses use AI technologies in the UK, however, they only consist of certain sectors and large businesses.
Some industries such as arts, entertainment and recreation, transportation and storage, and construction said that AI technologies don’t apply to their business.
Micro businesses (with less than 10 employees) are least likely to use these AI tools. But businesses with very large workforces (250 people) are more likely to use these tools.
The IT and telecommunications and legal sectors have the highest adoption rates. While companies in health, retail, and hospitality are said to have the lowest adoption rates.
Why small businesses should consider using more AI and automation tools.
An easy way to adopt AI technology is by using chatbots and generative AI. ChatGPT is very popular and it has captured the market but there are many other AI chatbots. Below are the categories of AI applications for businesses:
- Customer service experience: These tools help to provide 24/7 support, automate ticketing creation and routing as well as suggest replies to agents.
- Sales and marketing: They can help to personalize ads and organic content. It also automates tasks such as scheduling meetings, sending emails, etc.
- E-commerce and retail: These can include virtual shopping assistants, product recommendations, pricing optimization, logistics optimization, etc.
- Finance and accounting: AI can be used for invoice and payment processing, financial audit schedules, finance information analysis, fraud detection, etc.
- IT and HR support: These tools help to organize requests and route to tech and HR agents. It also suggests useful knowledgebase articles to users, and helps to analyze articles for the user.
- Data analytics: AI helps to analyze large datasets, discover patterns, detect market trends, and make better decisions across every business aspect.
How AI can benefit small businesses.
Small businesses are competing against large enterprises with more resources at their disposal so they need to be equipped with automation tools. According to a report by Constant Contact, 91% of small businesses say that AI technologies help to save time and work more efficiently.
For example, online marketing yields better results when you use AI to target customers, personalize content and optimize campaigns. It can also support sales people who are trying to close deals and generate more revenue.
AI-powered tools in customer service help to reduce long waiting times, provide 24/7 support, suggest help center articles, and collect feedback. It also helps to manage contacts and streamline interactions on CRM platforms.
Recap: AI adoption in the UK
There are numerous benefits of artificial intelligence but many UK businesses are skeptical about using these technologies and some think it isn’t applicable to their businesses. However, AI and automation tools help to engage customers, boost strategies and compete more favorably, improve processes and make better decisions.
David Prior
David Prior is the editor of Today News, responsible for the overall editorial strategy. He is an NCTJ-qualified journalist with over 20 years’ experience, and is also editor of the award-winning hyperlocal news title Altrincham Today. His LinkedIn profile is here.
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