The Impact of AI on Small Businesses: What the UK Figures Show

The ONS runs a regular survey of UK businesses. In its article on AI in UK businesses (opens in a new tab) (published 20 July 2026, with survey data up to June 2026; checked October 2026), it reports that 28% of businesses with 0 to 9 employees use at least one AI technology. That compares with 49% of those with 250 or more employees. So most very small firms do not use AI yet.

Across businesses with 10 or more employees, the ONS says use has risen from around 12% in late 2023 to around 35%. It also says larger firms are more likely to have adopted AI.

That does not mean AI is an "essential" for every small business. More than seven in ten of the smallest firms are getting by without it. It does mean that use is growing, so it is worth knowing what it can and can't do for you.

Think about the jobs you repeat every week. These are usually the best places to look first:

• Writing a first draft. Emails, quotes, descriptions and social posts can start from an AI draft, which you then check and edit yourself.
• Summarising and sorting. Long emails, notes or documents can be turned into short lists.
• Answering the same questions. If customers ask the same few things, AI can help you write clear, reusable replies.
• Spotting repeated admin. Copying details between tools, or typing the same information twice, is often better solved by connecting the tools you already use. I cover this under business automation for small firms.

AI is not right for every job. It can get things wrong, so a person should read anything that goes to a customer. If you aren't sure where to begin, my guide on where to start with AI in a small business goes through it step by step. If you'd like help working it out for your own business, I offer AI consulting, starting with a call.

Before you try AI, think about these:

• Cost and time. Bringing AI into your business, often called AI integration, takes money and time. The ONS says cost is reported as a constraint across all size bands, affecting around 7% to 14% of businesses. Check what a tool costs before you commit, and see whether it offers a trial.
• Skills. Lack of expertise is one of the most cited barriers in the same survey. You do not need to be technical to start, but you do need time to learn what a tool does well and badly.
• Privacy. Think about what customer information you type into a tool. If you aren't sure, leave personal details out and check the tool's own privacy information first.
• Quality. AI can sound confident and be wrong. Check facts, prices and names before anything is sent or published.

The ONS figures show that AI use among small firms is growing, but most of the smallest businesses still don't use it. It can help with drafting, sorting and repeated admin, as long as a person checks the results. It is a tool to try on one job at a time, not a must-have. If you would like to talk through what could work for your business, get in touch.