British SMEs could unlock as much as £78.1bn in economic value by adopting AI technologies, according to a report from Microsoft and WPI Strategy.
Large firms globally have been leading the charge on AI integration, but SMEs, which make up the vast majority of companies in the UK, have had to take a more cautious approach due to the cost of implementing new technologies and a shortage of relevant skills.
New analysis from Microsoft has suggested, however, that over the next decade billions could be added throughout Britain’s regional economies if SME AI adoption reaches critical mass.
The report also zeroed in on three areas of Britain considered both high-potential and underperforming, West Yorkshire, Liverpool and Cardiff.
According to its findings, mass adoption of AI from SMEs in each area would net healthy returns.
“The £78bn opportunity isn’t just a number – it’s growth that should be felt in communities from Kent to Cumbria,” said Microsoft UK vice president Hugh Milward.
“To unlock it, we need coordinated action from government, regional mayors, and industry to put the transformative benefits of AI into the hands of the people and businesses driving regional growth.”
The report laid out three key recommendations to overcome the adoption barrier for small businesses.
It called for the creation of regional “AI champions” across the UK. The scheme would be led by regional mayors and local authority leaders to establish a coordinated local approach to generative AI adoption.
It suggested the launch of generative AI regional adoption challenges that would consist of hands-on advice, training and planning support for local SMEs.
Lastly, the report argued in support of the government exploring incentive offerings to SMEs to adopt AI technologies.
“Building a thriving regional AI sector is essential to making sure everyone can benefit from this technology,” said the UK AI Minister Feryal Clark.
“That’s why we’re backing businesses with the tools, tech and training they need — and working with local leaders to put AI at the heart of a stronger, fairer economy as part of our Plan for Change.”
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