A lack of training is the main obstacle for less than one third (29%) of small businesses to adopt AI.
According to a survey of 500 SME Leaders across various sectors, 82% are confident in using AI. The average for smaller businesses with limited training budgets is 37%.
More than half (52%) SME’s say that the greatest barrier to AI adoption is a lack in internal skills and knowledge.
Only 12% of companies have invested in AI training for their staff, despite 51% of them agreeing that AI is a key factor in the future of business.
Only 27% of SMEs are confident that they can successfully and safely oversee the implementation of new tools, despite knowing how important AI is to them.
Even though SMEs know about AI tools such as ChatGPT and Otter.ai 33% still report internal barriers for adoption. These include lack of skills, distrust, and strategic uncertainty.
The Institute of Coding commissioned this study and fears that the lack of AI skills and knowledge will create a gap between large businesses and small business.
A national collaboration of universities and charities, led by the University of Bath, has offered free short practical courses to help workers of all levels gain confidence in AI.
Over half of large companies (55%) reported that they use the technology consistently, while only 34% encourage the adoption of AI in SME’s.
The UK Government’s AI Opportunities action plan and TechFirst program aim to train 7 million workers by 2030.
The research shows that 59% of SMEs, and not only large businesses or students, want a national AI skill strategy that is tailored for all levels of career and business size.
Some 75% say that businesses need more guidance about the AI skills they will require in the next 3-5 year.
Professor Rashid Hourizi, MBE, Director of Institute of Coding said: “We are pleased to see that a growing number of micro-businesses and sole traders have a focus on AI. However, the research shows a worrying AI readiness gap which threatens to create two-tiered business economies. The research shows that while larger SMEs have a high level of confidence in their AI abilities, micro businesses and sole-traders in non-tech oriented sectors are left behind.
“This is not just about the success of individual businesses – this is about ensuring that the entire UK can take part in the AI revolution. We cannot afford to exclude the smallest companies from AI adoption, as they are often the backbone of employment and local economies.
The UK is investing in AI with vision and momentum. The benefits of AI won’t be democratised unless sole traders and micro businesses are explicitly included in national delivery plans. The Institute of Coding is not only aligned with UK strategy but is also essential for making it real in every corner of the economic system.”
Further details can be found here: https://instituteofcoding.org/
The original version of this article, Small businesses call for AI training support, first appeared at HR news.
