Artificial Intelligence (AI) is no longer a distant prospect for small businesses — it is already here, reshaping day-to-day operations and opening up new opportunities for growth.
According to new research from YouGov, 31% of UK SMEs are actively using AI-powered tools, while a further 15% say they plan to adopt them in the near future.
Just as AI has transformed wider society — with ChatGPT famously becoming the fastest-growing app in history by reaching 100 million users in just two months — business adoption is accelerating. The challenge now lies in knowing which tools to use, and how to balance automation with human oversight.
One reason for rising adoption is the sheer availability of AI solutions. Many businesses already have access through existing subscriptions. For example, Microsoft has embedded its Copilot AI assistant within Word, Excel, PowerPoint, Outlook and Teams, giving users the ability to draft documents, analyse data and streamline communication.
Kirstie Kavanagh, a tech consultant and AI enablement expert, said: “If you’ve got an enterprise-level Microsoft 365 Business Structured Account, you probably have a lot more in that than you realise. But remember: the AI is simply a copilot, not the pilot.”
This distinction underscores the need for SMEs to run internal audits, identifying where AI can complement — rather than replace — human expertise.
Cybersecurity: risk and defence
AI’s rapid development has also made cyber threats more sophisticated. UK SMEs lose an estimated £3.4 billion annually to cyber attacks, with the average incident costing between £3,398 and £5,001.
Yet AI can also help businesses defend against these risks. From monitoring network traffic to flagging potential breaches, AI tools are now being deployed as part of proactive cybersecurity strategies. Still, human oversight remains essential, particularly when it comes to regulation and compliance.
Christiana, co-founder of FlightStory, the content studio launched with entrepreneur Steven Bartlett, stressed the importance of expert guidance: “Any small businesses that want to start experimenting with AI tools should be seeking expert guidance from partners. When it comes to things like GDPR, compliance and cybersecurity, we’re still going to engage partners like Vodafone Business for advice to make sure we’re doing it right.”
Data privacy is another critical consideration. SMEs adopting new tools should review providers’ privacy policies to confirm compliance with GDPR. As Kavanagh advises: “If you’re a UK-based business and the tool stores data in the UK, does it have a GDPR reference within its privacy policy? Then you can tell instantly whether this tool is taking regulation seriously.”
Equally, businesses must have their own internal policies to guide employees on what data can and cannot be shared with AI tools. This helps avoid unintentional exposure of sensitive or confidential information.
For SMEs, AI can deliver measurable gains in productivity, cost savings and resilience — but only when combined with sound human judgement. From automating routine tasks to bolstering defences against cyber threats, the technology’s potential is clear. The key lies in integrating it responsibly, with expert partners and compliance measures ensuring growth is sustainable and secure.
