Most small businesses aren't reviewing their own AI usage properly
British SMBs are struggling for AI visibility, and that extends to both who's using what and how much it's costing them.
A new study by Pax8 has revealed that many small and medium-sized businesses (SMBs) in the UK are struggling to effectively manage their use of artificial intelligence (AI). Over a third (39%) of UK SMBs have encountered unexpectedly high AI bills, indicating a lack of sufficient visibility into their AI consumption. Moreover, fewer UK organizations have a formal internal AI review process compared to their counterparts in Germany (32%) and the US (36%).
Only around half (54%) of UK SMBs are currently developing their own AI, putting them significantly behind the US, where 81% of businesses are engaged in AI development.
Additionally, only 12% of UK SMBs have dedicated AI budgets, and a significant number (19%) cannot even distinguish AI spend from other technology-related expenditures. This lack of clarity on AI spending makes it difficult for these businesses to determine the return on investment (ROI) of their AI initiatives, with only 16% feeling confident in doing so – a stark contrast to the 45% of businesses in Sweden that express confidence in measuring AI ROI.
Security concerns are the primary barrier preventing wider AI adoption among UK businesses, but the report suggests that this presents an opportunity for software vendors and IT service providers. Pax8's EMEA CEO, Harald Nuij, emphasizes the importance of businesses that can provide SMBs with the necessary visibility, security, governance controls, and cost management options.
The report highlights that the current state of AI adoption among UK SMBs highlights the need for trusted providers to help these organizations integrate AI capabilities seamlessly into their operations.
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