"The gap between what large corporations can do with technology and what small businesses can afford has been shrinking for years. But in 2026, that gap has nearly closed entirely when it comes to artificial intelligence. Tools that would have cost six figures to develop five years ago are now available for less than £50 per month. The question for UK SMEs is no longer whether they can afford to use AI, but whether they can afford not to."
"Most predictions about AI in business focused on automation replacing jobs. What actually happened was different. AI became a multiplier for small teams, allowing a marketing manager to produce the output of three, or a customer service team of two to handle enquiries that previously needed five. A recent Federation of Small Businesses survey found that 34% of UK SMEs now use AI tools in some capacity, up from just 12% in 2024."
"For SMEs competing against companies with deeper pockets and larger teams, this matters. A four-person agency can now pitch against a forty-person competitor and deliver comparable quality, because the technology handles the heavy lifting that once required headcount. What's actually working for small businesses The AI tools getting real results for SMEs aren't the headline-grabbing chatbots. They're quieter, more practical applications that solve specific problems."
Artificial-intelligence tools have become affordable for UK small and medium-sized enterprises, with capabilities once costing six figures now available for under £50 per month. AI adoption has shifted from fear of job losses to productivity multipliers that let small teams produce much more output. Survey data show AI use rising from 12% in 2024 to 34%, with users reporting completing the same work in 23% less time. Small agencies can compete with much larger firms because technology handles tasks that previously required headcount. Practical AI applications—content drafting and research, and AI-assisted customer communication—are delivering measurable gains while humans retain strategy, editing and expertise.
Read at London Business News | Londonlovesbusiness.com
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