In 2024, small businesses in the UK faced challenges, including rising costs, difficulties hiring and pressures on consumer spending. Some owners cut costs and used their personal savings to keep the business running. Artificial intelligence (AI), despite its controversial use, is now a major consideration.
According to Bionic, a provider for expert comparison services aimed at SMEs. In a survey of 500 UK-based small business owners, 74 percent said they plan to integrate AI into their business operations by 2025. A quarter of the respondents said that they are “very likely” going to implement AI in 2019.
The survey revealed that 25 percent of respondents cited the issue of accuracy as their main concern with AI integration. The second most important issue was identified by 23 percent of respondents as knowledge gaps within their workforce, followed by lack of regulations at 20 percent.
Businesses are concerned about how AI will work and whether or not their employees have the skills required to use the technology. As well as privacy, security, and cost, there were concerns regarding the impact of AI on customer relationships, and job security.
AI and cybersecurity spending
More than half of small business owners surveyed said they would increase their cybersecurity expenditure by 2024 in response to the increasing digital threats. It is interesting to note that 80 percent of respondents said they had not been targeted by a hacker last year. In contrast, government statistics show that 50% of UK businesses reported some type of cyberattack in the same time period. Phishing attacks were the most common.
Laura Court-Jones of Small Business Editor said this could be indicative of “a lack” of awareness around the types cyberattacks that small businesses may face.
She said that many people could miss something as simple as the malicious link within a phishing e-mail. “With cyberattacks on the rise, and small businesses as easy targets for them, business owners and employees should be educated about what to watch out for in order to keep their company safe.”
According to the survey, many small businesses may still be underestimating online threats. Cybercriminals are constantly evolving their methods, and this could expose them to cybercrime.
AI is the future of SME operations
Despite their concerns, 74 per cent of business owners surveyed indicated that they plan to integrate AI in their operations by 2025. This indicates a growing acceptance for the technology, but with caution over its potential drawbacks.
Les Roberts Senior Content Manager of Bionic said that using AI for handling customer data could lead to breaches in security and privacy.
Roberts stated that some business owners might be concerned that AI will reduce the human touch that makes their business unique, particularly in customer service.
There may be a simple fear of change, especially if your current processes work well. This combination of factors can cause small business owners to be reluctant to embrace AI, despite its benefits.
