Small businesses across the UK have faced a challenging year in 2024, with rising costs, hiring difficulties and consumer spending pressures. To keep operations going, some owners resorted to using personal savings and cutting costs. Now, the integration of artificial intelligence (AI) is a growing consideration despite concerns about its use.
That’s according to research from Bionic, a provider of expert comparison services for SMEs. A survey of 500 UK small business owners revealed that 74 percent plan to incorporate AI into their business functions during 2025. A quarter of those surveyed said they were “very likely” to introduce AI this year.
However, the survey found that the main concern about AI integration is the challenge of inaccuracy, cited by 25 percent of respondents. Knowledge gaps in their workforce were identified as the second biggest issue at 23 percent, followed by the lack of regulation at 20 percent.
Business owners have concerns over how well AI would function and whether their staff possessed the skills needed to work with the technology. Privacy, security and cost were also mentioned as additional considerations, as well as concerns about the potential impact on customer relationships and job security.
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Cybersecurity spending and AI adoption
In response to increasing digital threats, more than half (53%) of the surveyed small business owners increased their cybersecurity spending in 2024. Interestingly, 80 percent reported they were not targeted by a cyberattack last year. This contrasts with government statistics showing that 50 percent of businesses in the UK reported some form of cyberattack during the same period, with phishing attacks being the most common.
Laura Court-Jones, Small Business Editor, said that this could indicate there is “a lack of awareness” around the types of cyberattacks small businesses could face.
“Something as simple as a malicious link in a phishing email could easily go missed by many,” she said. “And with cyberattacks becoming increasingly common, and SMEs as easy targets, business owners should educate themselves and their employees on what to look out for to keep their business safe.”
The survey results suggest that many small businesses might still underestimate the nature of online threats. This could leave them exposed as cybercriminals continue to evolve their tactics.
AI and the future of SME operations
Despite concerns, 74 percent of the surveyed business owners indicated they intend to integrate AI into their operations during 2025. This suggests a growing acceptance of the technology, tempered by caution about its possible drawbacks.
Les Roberts, Senior Content Manager at Bionic, said that using AI to handle customer data can lead to breaches in privacy and security.
“Some business owners may fear that AI could reduce the personal touch that sets their business apart, especially in customer service,” Roberts said.
“There may even be a simple resistance to change – adopting new technologies can be intimidating, particularly if the current processes are working well enough. These factors combined can make small business owners hesitant to embrace AI despite its potential benefits.”
Alessandra Pacelli is a journalist and author contributing to HRreview, where she covers topics including labour market trends, employment costs, and workplace issues.
- Alessandra Pacelli
- Alessandra Pacelli
- Alessandra Pacelli
- Alessandra Pacelli
