AI adoption among UK SMEs is rising rapidly, with 35% now actively using AI, up from 25% in 2024 (British Chambers of Commerce, 2025). Only a small proportion are using AI to transform operations; most are experimenting without realising significant benefits, with just 11% deploying AI extensively to automate or streamline services (BCC, 2025).
Air IT Group highlights the importance of strong operational foundations so SMEs can embed AI, save time and scale efficiently.
Adoption is up – but impact is patchy
Artificial Intelligence (AI) is transforming UK SMEs, but a new report from the British Chambers of Commerce (BCC) shows that many businesses are still struggling to turn AI adoption into measurable impact. The data indicates 35% of SMEs are actively using AI, 24% plan to adopt, and firms with no AI plans have fallen from 43% to 33% – clear signs that AI is viewed as a driver of competitiveness (BCC, 2025).
“AI adoption among SMEs is on the rise. The organisations seeing the biggest productivity gains are those building on solid foundations. Strong processes and good data turn AI from a clever tool into a true business advantage, because AI works best when it enhances well‑run operations.” said Peter Pendlebury, Chief Automation & AI Officer at Air IT Group.
Adoption vs. transformation
SMEs are increasingly using AI for content creation, administrative tasks, research and workflow acceleration – useful applications, but rarely transformative at scale. The BCC found only 11% of SMEs use AI extensively to automate operations or streamline services (BCC, 2025).
Air IT Group argues that SMEs that truly benefit from AI are rethinking their operations:
- Identifying where time is lost each week
- Automating repeatable tasks safely and immediately
- Structuring data and processes to strengthen AI operations
“AI is no longer futuristic; it’s a practical ally for everyday business challenges,” Pendlebury added. “The difference comes from embedding AI into operations, not just using tools sporadically.”
Operational barriers hold back productivity
The BCC identifies several barriers limiting AI’s effectiveness for SMEs: fragmented, disconnected tools; manual and inconsistent processes; scattered or unstructured data; uncertainty about where to deploy AI; and weak security or identity controls (BCC, 2025). These obstacles mean that while AI is being used, it is often not embedded – and therefore not delivering measurable value (BCC, 2025).
The report also flags a structural maturity gap in the market: “There is a widening divide between AI‑ready firms and those struggling to keep pace.” (BCC, 2025). Sector disparities are emerging too, with AI adoption at 46% in B2B services versus 26% in B2C and manufacturing (BCC, 2025).
A recent example comes from Babington, a nationwide training provider. Their team used to spend hours each week manually creating user accounts, disabling leavers and managing routine onboarding tasks. After adopting Air IT Group’s self-service intelligent automation platform, these processes now happen in minutes, even when deadlines are tight.
“Air IT Group’s self-service automation platform has streamlined our onboarding and off‑boarding process, saving us countless hours and ensuring we can meet handover deadlines even at very short notice,” said Harvey Parr, from Babington. “It’s allowed us to free up time and focus more on improving learner experience.”
Strong foundations are the difference between experimentation and impact
“There’s a big difference between using AI and getting value from it. Right now, a lot of SMEs think they’re doing AI because they’ve added a chatbot or content tool. But unless workflows, data and decision-making are rebuilt for AI, the results can ‑be marginal at best.” said Peter Pendlebury, Chief Automation and AI Officer at Air IT Group.
Pendlebury adds: “AI only becomes transformative when it stops being a bolt on and starts becoming part of how the business runs every day. When data is clean, workflows are consistent and intelligent automation takes care of the repetitive work – that’s when SMEs see real transformation.”
What AI‑ready SMEs achieve: Lessons from Air IT Group
Air IT Group demonstrates what’s possible when AI and automation are integrated across operations:
- 95% of self-service requests completed in under five minutes
- 161 million+ automated actions executed monthly
- Over 2,000 automation scripts powering consistent resolutions
- 34% increase in self-service usage after AI-driven guidance
- 1,700+ internal hours of employee time saved each month
These gains allow SMEs to scale efficiently, increase productivity and improve service delivery without additional headcount.
2026 is a turning point for SME competitiveness
With AI capabilities accelerating and adoption gaps widening, 2026 is shaping up to be a pivotal moment for UK SMEs. Those embedding AI into daily operations will gain a clear advantage in cost efficiency, capacity and service quality, while those continuing experimentation risk falling behind.
Air IT Group is helping organisations operationalise AI and automation, modernise systems, and achieve measurable gains across productivity, service delivery, and growth.
“Many SMEs believe they are ‘doing AI’ when in reality they are just layering new tools onto old ways of working. Without fixing how work flows through the business, AI delivers marginal gains at best”
