{
  "id": 983399,
  "title": "Is AI really helping your SMB? Study finds a quarter of execs can't explain what their AI actually does",
  "url": "https://urgent.news/2026/08/15/is-ai-really-helping-your-smb-study-finds-a-quarter-of-execs-cant",
  "topic": "ai",
  "section": "AI",
  "published": "2026-08-15T07:00:00.000Z",
  "source": {
    "name": "TechRadar",
    "slug": "techradar",
    "url": "https://www.techradar.com/pro/is-ai-really-helping-your-smb-study-finds-a-quarter-of-execs-cant-explain-what-their-ai-actually-does"
  },
  "original_language": "en",
  "account": "A recent study has revealed that a quarter of business executives struggle to explain the workings of the AI systems they employ, potentially putting their small and medium-sized enterprises (SMEs) at risk. The survey, conducted by Startup.co.uk, found that 25% of business leaders find it difficult, and 12% find it very difficult, to articulate how AI-generated outputs are derived. This lack of understanding raises concerns about the trust SMEs place in AI for complex financial tasks, including audits, compliance, and financial management.\n\nCustomers and investors are increasingly wary of businesses that rely on unverified AI, as they may perceive it as a risk to their data and security. The survey also highlighted that 85% of small businesses are using AI for financial tasks, with 37% employing AI for accounts payable processes, 32% for audit and compliance, and 31% for managing expenses. While AI can offer benefits such as fraud detection and performance insights, the inability of leaders to explain AI logic could lead to significant legal and compliance issues, such as breaching GDPR regulations.\n\nWith fines of up to £17.5 million or 4% of global turnover for verified GDPR breaches, businesses must ensure they understand the processes behind AI systems. The study suggests that blindly trusting AI with sensitive financial data is a risky gamble, as the implications of data misuse could be severe. Therefore, business leaders need to improve their understanding and communication of AI's functionality to mitigate potential risks and maintain compliance with data protection laws.",
  "summary": "An incredible 25% of business leaders are unable to explain AI-generated outputs, while a worrying majority rely on AI for vital financial tasks, including expenses and payments",
  "key_points": [
    "25% of business executives struggle to explain AI systems' workings",
    "85% of small businesses use AI for financial tasks",
    "GDPR breaches could result in fines up to £17.5 million"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}