Less than one in three small business people can embrace AI, citing lack of training as the biggest obstacle.
Based on a survey of 500 small business leaders from various sectors, 82% of mid-sized businesses are confident using AI, so the average for small businesses without a large training budget is only 37%.
It is a lack of internal skills and knowledge that more than half (52%) of small businesses identify the biggest barrier to adopting AI.
Meanwhile, only 12% of companies invest in AI-related training for staff, despite 51% agreeing that AI will play a key role in shaping the future of their business.
Despite knowing how Instricinic AI knows their success, only 27% of small businesses believe they can safely and effectively oversee the implementation of new tools.
Even when small businesses know AI tools like ChatGpt and Otter.ai, 33% report internal barriers to recruitment, such as lack of skills, trust, and strategic uncertainty.
The coding lab commissioned the study fears that lack of AI skills and understanding threatens to create an irreversible gap between large and small businesses.
National cooperation between universities, charities and employers led by Bath University has stepped in to provide workers at all levels with free, practical short courses designed to make them confident in AI.
Over half (55%) of large companies report using technology, while only 34% of small businesses encourage AI adoption.
The UK Government's AI Opportunity Action Plan and TechFirst programme aim to train 7.5 million workers by 2030.
However, the survey revealed that 59% of small businesses want a national AI skills strategy tailored to all career levels and all business sizes, not just large companies and students.
Approximately 75% of small businesses say that companies need clearer guidance on the AI skills their teams need over the next three to five years.
Professor Rachid Houlizi Mbe, director of the Coding Institute, said: “We are pleased to see that micro companies and only traders focusing on AI will flourish, but this study highlights the AI readiness disparities that could create a two-tier business economy.
“This is not just about the success of individual businesses, but about enabling the entire UK economy to participate in AI transformation. The smallest companies often form the backbone of their local economy and employment, so they cannot afford to see them being excluded from AI adoption.
“The UK has the momentum, vision and investment behind AI. However, unless micro companies and only traders are explicitly included in the national delivery plan, the benefits of AI will be concentrated rather than democracy.
For more information, please see: https://instituteofcoding.org/
