Small and medium-sized businesses across the UK are increasingly adopting artificial intelligence (AI) tools to increase productivity and efficiency, according to new research highlighting the growing appeal of technology to poor time entrepreneurs.
A study led by Professor Ross Brown of St Andrews Business School found that small and medium-sized UK businesses can achieve productivity gains of 27-133% using AI tools. The findings are based on interviews with around 10,000 companies conducted by the Bureau of Business and Trade, suggesting that AI could address the UK’s longstanding productivity challenges.
“AI could offer small business shortcuts that offer quick productive wins, such as planning lotus for staff and reducing food waste in small restaurants,” Brown said. “These solutions are inexpensive and relatively easy to implement.”
The findings are supported by recent data from Fairle, an independent retailer wholesale market. This found that 83% of the 300 surveyed SMEs used AI tools, with more than one in three using them every day. Only 10% said they were not interested in adopting technology.
One such recruit is Kate Tompsett, owner of Happy & Glorious, a Canterbury-based British-made gift shop. With only two part-time staff, we use the AI platform ChatGpt to support our marketing efforts, from creating product descriptions to drafting blog posts.
“I think the product description is really boring, especially when you have the same tote bag in eight colors,” she explained. “Each Google needs something unique, and ChatGpt helps me get started.” She constantly rewrites content to maintain the tone of her voice, but Tompsett described AI as “a kind of mini me” that makes life easier.” She is currently considering using it for scheduling and business planning.
Charlotte Stubbs, who runs Creativity, a gift shop in the coastal town of Shellingham, Norfolk, takes a more careful approach. Her sister uses AI tools built into social media platforms such as Instagram, Facebook and Tiktok to increase visibility. This helped to promote the sale of popular items such as Jellycat Soft Toys.
However, Stubbs is skeptical of its reliance heavily on AI. “When you’re a small business like me, I know what stock I need and when I need it, I don’t need a computer to tell me it,” she said.
Despite the different levels of adoption, the trend is clear. AI is becoming a valuable tool for small businesses, especially when used to tackle time-consuming tasks that do not require specialized technical knowledge. For many owners, the technology offers aid, or at least a head start, in implementing lean, agile operations in the increasingly digital world.
