October is traditionally the point of the year when British companies sharpened their pencils and set financial priorities for the year. It's time for the leadership team to review performances, plan investments, and match the budget with the government's fall statement. I feel the process is different this year. The fall statement was pushed back until November 26th, and was unusually late. For many boards, it delays planning. Furthermore, uncertainty about the fiscal environment can be uncomfortable, but it offers opportunities. It offers the opportunity to ask how ready your business is, especially to employ the surrounding artificial intelligence.
This is the second article in my series exploring AI adoption in small and medium-sized businesses. Last month I looked into why many boards know about AI issues, but only a third is using it. This month we want to see more of the preparation, not only if leaders are familiar with AI, but if their business is using it strategically and confidently.
Preparation and recognition
Being familiar with AI is the best ever. A recent YouGov poll shows that 86% of small business leaders say they are AI-savvy. However, when asked what number they actually use, the number is only 31%. Recognition is not comparable to preparation. The danger for leaders is to assume that awareness is sufficient.
Because AI preparation is more than a tool. It's about leadership integrity, people, data. When you're sitting with the board, you say, “I don't know where to start.” Or: “We'll wait and see.” But waiting is not neutral. This means that we are lagging behind our competitors who embed AI in their workflows, increasing productivity and improving customer experience. Similarly, rushing without a strategy puts unnecessary spending and loss of trust at stake. So how can you balance these challenges?
AI preparation really makes sense
For us, it's AI ready. We divide our preparation into five foundations:
- strategy: Are there clear plans to show where AI supports growth, efficiency, or resilience?
- skill: Do leaders and staff have the confidence and knowledge to use AI responsibly?
- data: Is the system accurate, accessible and reliable? AI is just as good as FED data.
- culture: Is the organization open to change and experimentation?
- Governance: Are the ethical, security and compliance impacts understood and managed?
When these foundations are in place, strategic decision-making is possible, along with planned approaches to pilots and high-class skills. It is the core driver of growth.
National Photo: Promising but Patchy
There is a mix of AI readiness across the UK's small business sector. A survey discussed in HR News this year found that 82% of mid-sized companies are confident in using AI. For small and medium-sized businesses, this figure fell sharply to 37%. Additionally, 52% of SMEs cited lack of internal skills as the biggest barrier, with only 12% investing in AI-related training.
However, the benefits for those who are already using AI are concrete. St Andrew's Business School has proven that SMEs are improving productivity at up to 133%, with recent reports showing improved quality of work, reduced job-based overwhelmingness and increased job creativity. Evidence increases the time savings of commonly used AI. It also improves your confidence and quality of work.
The cause of optimism isThe UK government is stepping up its efforts to position the country as a global leader in AI innovation. Encouragement, we believe that AI is a key long-term strategic goal, just over 50% of companies.. ” According to Techuk.
So why do you hehe? At Alcea, much of our conversation about managing concerns is based on costs and uncertain ROI. In addition to the newness of technology, we also found a lack of trust. This will be partly subject to uncertain terms of business. The issues of infrastructure and governance are another perceived risk factor. Microsoft suggests that over 80% of business leaders expect AI to transform its business within 18 months, but less than half of IT decision makers consider AI preparation into their hardware strategy: a complete contradiction.
The result is an uneven playing field. Some small and medium-sized businesses incorporate AI into their decision-making, customer service and operations. Others are still looking from the sidelines and sitting indecisive.
Why benchmarks are important
The challenges for boards and businesses are simple. Without a benchmark, you don't know if you're moving ahead, delayed, or standing. Therefore, we have begun the UK Small and Medium Enterprise AI Preparation Diagnosis. This short, three-minute study shows two things that leaders have. A clear picture of their business's position in AI travel and opportunities to contribute to the national dataset.
With October marking the start of the planning season and the fall statement delayed until November 26th, there is an unusual pause in financial decisions. This is the ideal moment for leaders to stock up. The biggest risk is not “behind” today, but stuck in the same place tomorrow. AI Preparation is not a box to check. It's the responsibility of leadership, and those who transition from curiosity to clarity will set the pace in 2026.
Final Thoughts
Every business leader I meet wants the same outcome. Better decision making, more efficient teams, stronger resilience in economic change. AI can deliver these, but only if your organization is ready.
So here is my call for action: It takes three minutes to complete the UK Small Business Preparation Examination before finalizing your budget or strategic cycle. You are better equipped to clarify your position, contribute to national photography and lead your business to the year with confidence.
Do some research here
