There is a growing divide in artificial intelligence (AI) adoption between senior leaders and junior employees in small businesses across the UK, resulting in an “AI advantage gap” in the workplace.
That’s according to research from global employment platform Employment Hero, which was published in the company’s latest “Work that Works” report. The study found that while almost three-quarters (73%) of senior managers use AI at least once a month, only 32 percent of entry-level workers report the same.
Despite assumptions that younger generations are leading AI adoption, the research suggests it is older millennials and senior leaders who are using the technology most frequently in professional settings.
This divide is not limited to age but extends across organisational hierarchies. Senior staff are driving AI usage while many junior workers are left without access or relevant training. The report warns that this imbalance risks creating an uneven playing field where only certain employees benefit from productivity improvements.
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A respondent in the study, identified as a Head of People in a business with 50 to 99 staff, commented, “The installation of AI and making employees aware about how to use it, is the biggest challenge for our business nowadays.”
Unequal rollout of AI linked to lower productivity
While many leaders report positive results from AI, with over half of UK business leaders crediting it for productivity improvements, the report also points to productivity losses where AI is poorly implemented. Employees who feel excluded from AI initiatives report a 50 percent decline in their own productivity.
The study highlights that productivity levels are also significantly lower in businesses that have not introduced AI or have minimal usage. This trend is particularly evident in small businesses, where resources for training and technology investment are often limited.
Companies with fewer than 50 employees were found to be half as likely to implement AI compared to larger organisations. These smaller firms are 28 percent less likely to invest in technology and nearly twice as likely to avoid prioritising technical skills within their teams. Many smaller businesses surveyed described themselves as operating in “survival mode”, which restricts their ability to adopt new tools.
Without targeted support, the report warns that smaller businesses could face widening gaps in productivity compared to larger competitors who are embracing AI at scale.
Challenging myths about AI adoption in the workplace
The research also challenges some common misconceptions about AI in the workplace. Rather than merely acting as a shortcut, the study finds that AI can improve work quality and wellbeing. Among employees who regularly use AI tools, 40 percent say they feel less overwhelmed and 38 percent report delivering better quality work.
These findings suggest that AI may not replace jobs as often feared but instead help employees improve their performance and reduce workload pressure.
Kevin Fitzgerald, UK Managing Director at Employment Hero, spoke of the need for more inclusive approaches to AI adoption. He said, “AI is only delivering productivity gains for some, and that’s a huge problem. For technology to drive meaningful change, it needs to be in the hands of everyone. That means investing not just in access to tools, but in the training, support and confidence people need to actually use them.”
He added that businesses must take a “trickle-down, human-centred approach” to AI adoption that starts with leadership but is designed to benefit all employees equally.
Fitzgerald added, “Closing the AI advantage gap is essential – not just for the success of individual companies, but for improving productivity across the UK economy.”
