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The AI gap is widest in small businesses

Large employers are nearly twice as likely to be using AI as the smallest firms. That gap is the opportunity, not the problem.

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The Office for National Statistics put AI use across UK businesses with ten or more staff at 35 per cent in June 2026, up from 12 per cent at the end of 2023. That is a fast climb by any measure. The more useful number sits underneath it: 28 per cent of the smallest firms are using AI, against 49 per cent of large employers.

Why the gap matters commercially

The Department for Business and Trade put a figure on what adoption is worth to a smaller business: a productivity gain of between 7 and 18 per cent for each digital technology adopted. That is not a projection about the future of work, it is a measured range from firms that have already done it.

Put those two findings together and the position is straightforward. The businesses least likely to have started are the ones with the most headroom, and the cost of starting has never been lower.

Where adoption stalls

The same ONS release found that adopting firms are running an average of 1.6 AI technologies each, barely up from 1.4 two years earlier. Adoption is spreading sideways rather than deepening. Most organisations have tried something once and stopped, usually because nobody owned it after the trial.

That is a skills problem rather than a technology problem, and it is the reason we built the Level 5 units around managers rather than technical staff. The person who decides whether a pilot becomes a process is rarely the person who set it up.

What to do about it

  • Pick one process that is visibly costing time, not a strategy
  • Work out what it costs now, in hours, before changing anything
  • Give one person clear ownership of the pilot and the decision after it
  • Set the success measure before you start, and report against it

Sources: ONS, Artificial intelligence in UK businesses, June 2026. Department for Business and Trade, SME Digital Adoption Taskforce final report, 2025.

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