SMEs call for more AI training support

Less than one in three (29%) small businesses can embrace AI, citing a lack of training as the biggest obstacle.

Based on a survey of 500 SME leaders across different sectors, 82% of medium businesses are confident using AI, the average is just 37% for smaller businesses without big training budgets.

Over half (52%) of SME’s identify the biggest barrier to adopting AI is a lack of internal skills and knowledge.

Meanwhile, despite 51% agreeing that AI will play a critical role in shaping the future of business, only 12% of businesses have invested in AI-related training for staff.

Despite knowing how intrinsic AI is to their success, only 27% of SMEs believe they can safely and effectively oversee the implementation of new tools.

Even when SMEs are aware of AI tools like ChatGPT or Otter.ai, 33% report internal barriers to adoption, such as lack of skills, trust and strategic uncertainty.

The Institute of Coding, which commissioned the study, fears the lack of skills and understanding of AI threatens to create an irreversible gap between big business and SMEs.

The national collaboration of universities, charities and employers led by the University of Bath has stepped in to offer free, practical short courses designed to make workers at all levels confident in AI. 

The UK Government’s AI Opportunities Action Plan and TechFirst programme aim to train 7.5 million workers by 2030.

But the research reveals that 59% of SMEs want a national AI skills strategy tailored to all career levels and all business sizes, not just large enterprises or students.

Some 75% of SMEs say businesses need clearer guidance on the AI skills their teams will need in the next 3–5 years.

Professor Rachid Hourizi MBE, Director of the Institute of Coding, said:

“We’re pleased to see a thriving number of micro businesses and sole traders who have a core focus on AI, but the research reveals a concerning AI readiness divide that threatens to create a two-tier business economy. While larger SMEs are demonstrating strong confidence in their AI capabilities, the overall average of just 37% shows that micro businesses and sole traders in non-tech focused sectors are being left behind.

“This isn’t just about individual business success – it’s about ensuring the entire UK economy can participate in the AI transformation. The smallest businesses often form the backbone of local economies and employment, so we cannot afford to see them excluded from AI adoption.

“The UK has momentum, vision, and investment behind AI. But unless micro businesses and sole traders are explicitly included in the national delivery plan, the benefits of AI will concentrate, not democratise. The Institute of Coding’s work is not just aligned with the UK strategy, it is essential to making it real for every corner of the economy.”