According to government statistics, 34% of midsize businesses and 15% of SMEs have already deployed at least one type of artificial intelligence technology.
Business management, e-commerce, and marketing are the areas where AI is most utilized, whether or not companies are AI-aware.
These statistics follow projections that the use of AI technology will grow at a dizzying pace, with annual spending expected to exceed £35 billion by 2025.
AI is also projected to eliminate 85 million jobs and create 97 million new roles by 2025.
Is artificial intelligence taking over?
These statistics sound dystopian, but according to a report from the Ministry of Science, Innovation and Technology, the AI revolution will be a gradual change, not a technological big bang.
For example, there is still a widespread reluctance to adopt AI technology due to knowledge gaps and low public trust.
The government is now AI Whitepaperwhich aims to create a strong policy program to regulate AI.
Additionally, skill gaps make it difficult to hire the right people to use new technologies. In fact, she is the only one in 10 of the world’s workers who have the in-demand artificial intelligence skills.
Nonetheless, it is recognized that AI is an opportunity for growth. According to government statistics, an average of 269 new AI companies have registered each year since 2011.
Since 2016, AI companies have also generated £10.6 billion in AI-related revenue, employed more than 50,000 people in AI-related roles and secured £18.8 billion in private investment.
Where are small businesses located?
AI adoption is growing and generating benefits over time, but only 39% of SMEs believe AI will have a positive impact.
This is because SMEs encounter funding and product development gaps when implementing AI projects, leaving large pieces to larger companies.
Of the 3,710 UK AI companies currently registered, 28% are SMEs and 60% are micro-enterprises. but, 71% of total AI revenue (£7.6bn) were created by large companies, despite representing just 4% of the AI business population.
Together, SMEs account for just over a quarter (£2.8bn) of AI revenue.
The disparity in contributions between SMEs and large tech firms reflects how different capital allocations are. Most importantly, it demonstrates a risk-averse attitude that remains a stumbling block for small businesses seeking venture capital investment in the UK.
As a result, AI SMEs will increasingly rely on external funding to support the development of AI products and services.
Democratizing the AI Revolution
The spread of AI is probably unstoppable. But it seems reasonable to be concerned that SMEs are merely supporting players in the beginning of a new technology era.
“As each sector becomes more aware of AI and use cases, more people will start to dabble, which will become a catalyst for other sectors,” said an academic insider in a statement to the DSIT report. ‘ said.
However, for this to happen, each sector needs funding and access to the right tools. Stakeholder and business feedback in the DSIT report suggests that SMEs need more funding, the right tools, and public sector engagement to accelerate adoption.
Whether by improving access to R&D tax breaks for SMEs or by providing more support to secure venture capital for AI-related projects, policymakers will play an important role in democratizing AI adoption in the UK. play a role.
