UK SMBs Still Stuck Testing AI, ONS Data Suggests

UK businesses are adopting AI more widely, but smaller companies do not appear to be using it much more deeply. New ONS data says that among businesses already using AI, the average number of tools in use edged up only from 1.4 to 1.6 over the three years leading up to 2026.

That points to limited expansion inside firms rather than broad operational change. According to the data, most businesses are using a small number of tools to improve existing processes instead of redesigning how they work.

The gap is especially visible among smaller firms. Just 17% of SMBs with 0-9 employees reported extensive AI use, suggesting many are still in the trial phase. The report says these businesses are often experimenting with general-purpose AI tools rather than making larger investments in technology that could unlock bigger productivity gains.

The figures also suggest cost may not be the main issue. While 7-14% of businesses across all size bands cited cost as a barrier, 41% of SMBs with 10+ employees said they had no major barrier concerns. That implies the bigger problem may be a lack of clear business cases for AI, not just budget, infrastructure, or technical capability.

For larger companies, adoption is further along. The ONS found that 60% of larger businesses have used AI to improve business operations. Even so, the data showed no negative impacts on headcount, undercutting fears that current business AI use is already driving major workforce reductions.

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Taken together, the latest numbers suggest many SMBs have not ignored AI, but they have yet to move beyond experimentation into deeper deployment.

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