Quarter of SMEs have never used AI

New research from Uswitch has found that nearly a quarter of entrepreneurs (23%) are pushing back against the use of Artificial Intelligence (AI) in their small businesses. Among the 29% who see AI as a threat, over half (52%) say they fear it could replace their jobs.

When asked what’s influencing their stance, 27% of SME owners said they feel some pressure to adopt AI because competitors are doing so, followed closely by pressure from the media (26%), advisers (13%), employees (11%) and even friends and family.

Trust and understanding are also major factors. Half of SME owners (50%) said they don’t trust AI to make financial decisions, and 17% think that their employees don’t fully understand how AI works.

AI isn’t just a technological shift, it’s a shift in mindset, and small business owners are divided on where they stand. Of the 29% of entrepreneurs who think AI could pose a threat to their business. The data shows that 37% say it introduces data and compliance risks whilst 30% say their customers might not like AI-driven services.

When it comes to critical business functions, trust in AI is still low among SME owners. Nearly half say they distrust AI in areas like finance (50%), hiring (49%) and legal decisions (47%), in a multiple-choice survey question.

While some business owners are concerned about a lack of understanding, with 17% of them believing their employees don’t fully understand AI, 34% say their employees are optimistic about using the technology. This suggests a need not only for clearer guidance and training but also for harnessing that enthusiasm to implement new tools effectively.

Yet, beneath the worry, there’s curiosity. 76% of entrepreneurs want to learn more, and 27% feel genuinely excited about AI’s potential – if they can use it the right way.

Asked by Uswitch SME about her views on AI, Yasmin Waters, a 28-year-old small business owner and travel consultant based in Manchester with Travel Counsellors, said “As a small business owner and ‘one woman band’ I’ve found AI to be really useful at secondary research tasks and descriptive tweaks on quotes (hotels, for example). I also find it useful with my social media management.

“One area where I am precious about AI is when it comes to replacing human creativity (copywriting/editorial, graphics, video editing), because I think stretching our minds through creative means should be admired and celebrated as much as possible. A true sense of originality is becoming increasingly rare, so where possible – and when I have the time – I try to write in my own words.

“One area that does fill me with dread when it comes to AI is water usage. I genuinely do care about this planet and I’m aware of the extensive resources required to cool servers etc. I really hope, soon, tech giants take responsibility and find plausible solutions.”