Flexibility is a huge advantage for small businesses adopting AI, but clear strategy and bold leadership is critical

UK small businesses have an increasingly optimistic outlook on the potential of AI tools, new research suggests, but bold leadership will be required to ensure successful deployment.

A study published by Dell Technologies shows two-thirds (66%) of UK SMBs now view AI as a “route to growth”. More than half (56%), meanwhile, told the firm that AI could give their business a competitive advantage moving forward.

This optimism is driving investment, the research found, with funding primarily aimed at unlocking productivity gains, improving customer experience, and improving decision making.

Brian Horsburgh, UK small business country manager at Dell Technologies, told ITPro the study shows AI is having a marked positive impact for SMBs, particularly in terms of allowing workers to sharpen their focus on specific tasks.

“One of the realities of working in a small business is that everyone wears multiple hats. Many people find themselves spending hours on admin, reporting, marketing or customer queries, even though those aren't the things that inspired them to start or join the business,” he told ITPro.

“AI can help take some of that work off their plate, giving them more time to focus on customers, creativity, and growth.”

Pulling ahead of the pack

According to Dell Technologies, a small group of “AI front runners” has emerged among UK small businesses.

Representing around 7% of the firms surveyed, these report the strongest gains from using AI, allowing them to free up six or more hours each week with the technology.

Horsburgh told ITPro that a recurring theme with these front runners is having a clear cut strategy and not rushing headlong into adoption for the sake of it.

Indeed, these companies are more likely to have dedicated leaders championing AI than their slower-moving competitors.

More than half (52%) have “clearly defined specific AI use cases”, the study found, often starting with small examples before moving to more complex use cases as they mature.

“Having the right strategy is critical. Our research shows that those who are gaining the most from AI today say that AI use is coming from leadership as a priority,” Horsburgh said.

“Adopting AI means identifying ways it can help you do more of what helps your business grow and in fact, the number one piece of advice that came through from businesses of all sizes is to start small and iterate.”

Horsburgh said the findings highlight the need for dynamic, open-minded leadership when it comes to AI adoption. Initial use cases are key, he noted, but employee training and cultivating an “AI-friendly culture” are equally important.

“Those three pieces are critical to building a culture that drives benefits,” he told ITPro. “The outcomes that SMBs are seeing are positive for staff: more time to think strategically, improving decision making, improving customer experience, and having the right environment can help teams see those benefits sooner.”

The SMB agility dynamic

Dell Technologies’ study emphasized that small businesses have an inherent advantage over larger organizations when it comes to adoption.

First and foremost, they’re typically more agile and flexible with how they approach the technology – and the report noted that is now translating into higher rates of success.

This advantage isn’t lost on large businesses, either, Dell Technologies found. Nearly two-thirds (61%) of larger firms said greater flexibility is a key advantage for SMBs. Similarly, they have “more focused business needs” and are less risk averse.

SMBs also recognize these advantages, according to Dell Technologies, and are less likely than their larger counterparts to cite key barriers, such as lengthy approval processes, employee resistance to change, or fear of failure.

“Smaller businesses can have an advantage because they're often more flexible and can move faster than larger businesses, so starting with one or two key opportunities can potentially have an outsized impact.” Horsburgh told ITPro.

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