SMEs failing to use AI – British Chamber report

The majority of SMEs are still not using artificial intelligence – despite claims from a Midland business leader that it can play a crucial role encouraging new talent.

Research carried out by the British Chambers of Commerce Insights Unit in partnership with specialist recruiter Pertemps Network Group, shows that 43 per cent of firms have no A1 plans in place.

And while 25 per cent are currently using A1, customer-facing businesses are even less likely to adopt A1, with 50 per cent having no plans.

Meanwhile, 42 per cent of companies say they believe A1 will increase their productivity overall, while only two per cent expect it to cause a decrease. 

Carmen Watson, Pertemps Network Group Chair, said the introduction of artificial intelligence could play a vital role helping firms address skill shortages.   

“AI has the potential to significantly benefit many industries but, as our research with the BCC shows, there is still a nervousness about its applications. 

“One of the areas it can help is addressing skills shortages. Our research shows that many businesses do not feel there are measures in place to address the current shortages and ensure they have a talent pipeline for the future. Only by working together, collaborating across all sectors and disciplines, and embracing new technology, can we tackle this. 

“AI will play a crucial role. It can help free up time for experienced professionals who, freed from some of the more mundane and process-driven tasks on their to do lists, can spend time upskilling themselves and, also, mentoring those younger professionals coming through. 

“It remains vital that all employers look at their offering to workers, ensuring they are able to access additional services and support, so that once you have attracted the right talent, the work environment you are offering is inclusive and supportive.” 

Shevaun Haviland (pictured), director general of the British Chambers of Commerce said:  

 “AI technology is fast becoming a key part of the business landscape. It will have a huge impact on employment trends going forward. 

 “Our data is a stark reminder of the challenge ahead to get all firms equipped for the digital future.  

 “It’s encouraging to see 25% of businesses are now using AI – that’s progress from our survey this time last year. But nearly half of firms still don’t have plans to use the technology. 

 “Without direct action by the Government to help SMEs many firms risk being left behind. Businesses need advice and support to make the digital steps forward.  

 “That support on AI will also help firms feel more confident in their future skills planning. The pace of technological change is speeding up, not slowing down. It’s vital that all businesses are given the opportunities to embrace AI.”

The BCC research found overall, 43 per cent of respondents had no plans to use A1, 25 per cent said they were currently using a specific A1 technology, eight per cent were not sure if they were and 24 per cent planned to in future.

B2B companies are most likely to be currently using A1 (33 per cent) with manufacturers least likely (19 per cent). Nearly half of manufacturers (49 per cent) say they have no plans to adopt the technology, with just 24 per cent planning to use it in the future.

The findings form part of the landmark BCC/Pertemps Employment Trends Report 2024, which examines major trends impacting the labour market, including changing skills needs and increasing occupational health requirements.

The report also found that only 11 per cent of responding businesses feel their current training arrangements are allowing them to meet their future skills needs, while 39 per cent say they have seen an increase in the use of occupational health by employees.