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Publication

AI adoption – Unlocking growth potential for Small Businesses

Posted 30 Oct 2025

AI adoption – Unlocking growth potential for Small Businesses

Small- and medium-sized enterprises (SMEs) are the lifeblood of the UK economy, estimated to represent 99% of the total business population in the UK. Overcoming barriers and shaping the effective and responsible adoption of artificial intelligence (AI) can catalyse SME growth, and the political, social and economic goals of the UK government’s Modern Industrial StrategyAI Opportunities Action Plan, and Growth Mission. 

This report draws on the National Innovation Centre for Data (NICD) and Digital Catapult’s deep tech expertise to articulate the potential benefits and barriers to AI adoption, and provides recommendations for an accelerated, uniform and responsible adoption of AI technologies by industry to equip the UK to be future ready.  

Our unique insights come from the delivery of flagship national programmes for the practical application of AI such as Innovate UK (IUK) BridgeAI and the Hartree Centre North East Hub.