AI Adoption and Growth Potential for Small Businesses

This report by Digital Catapult and the National Innovation Centre for Data (NICD) outlines the insights gained from flagship national programmes regarding the adoption of artificial intelligence (AI) in small and medium-sized enterprises (SMEs) in the UK. It discusses the potential benefits of AI, including productivity gains and enhanced human creativity, while also addressing the uneven adoption across various industry sectors. The report identifies barriers to AI adoption, such as market dynamics, funding access, and organizational constraints. It emphasizes the importance of overcoming these barriers to catalyze SME growth and align with the UK government's economic strategies. The document presents case studies illustrating successful navigation of these challenges and concludes with recommendations for accelerating responsible AI adoption. The report aims to support the UK’s economic objectives by advocating for investment in tools and models that facilitate AI adoption among SMEs.