Government backs AI adoption. Now SMEs need a plan to make it work

Back in 2024, the SME Digital Adoption Taskforce was set up to explore how small businesses could get more value from digital technology. A year later it published 10 recommendations, built around a bold ambition: making UK SMEs the most digitally capable and AI-confident in the G7 by 2035. This summer, the government published its first update on progress and how it plans to deliver against those recommendations.

It's hard to argue with the ambition

The UK is already seeing rapid growth in AI use. Research from Ofcom shows that 54% of adults now use AI tools such as ChatGPT, Copilot, or Gemini, up from 31% previously. Usage rises to 79% amongst 16–24-year-olds and 74% amongst 25–34-year-olds. But there's a difference between seeing AI and using it. And there's another difference again between using it and getting value from it.

Three-quarters of online adults say they read AI-generated search summaries at least some of the time. Many people now encounter AI every day through search engines, social media, and software they already use. That looks like adoption on paper.

In practice, most business owners we speak to are still trying to answer a much simpler question: where would AI actually save us time?

I think the report has got the problem right. Capability, cost, and awareness are what's holding small businesses back. In my experience, most business owners don't need more AI tools. What they need is the time, the confidence, and someone they trust to help make it work for their business.

The challenge for many SMEs isn't access to AI

Most SMEs are busy running businesses, not evaluating technology. It's working out which parts of the business will genuinely benefit from it. We've seen businesses paying for licences that aren't being used. We've seen teams experimenting with different AI tools without any agreed guidance on what data can be shared. We've seen organisations buy software before they've worked out which manual processes, they're actually trying to improve. None of that is unusual.

That's why capability remains such an important part of the government's recommendations. Awareness gets people interested. Training, support, and leadership are what turn interest into results.

There's another challenge hiding underneath all of this: Security

AI doesn't fix poor data management, unclear permissions, or weak security controls. It tends to expose them. If people can see data they shouldn't see today, AI can make that problem bigger tomorrow. If sensitive information is already being shared in ways that aren't properly governed, AI can accelerate the risk.

The businesses getting the most from AI aren't necessarily the ones buying the newest tools. They're the ones putting the right foundations in place first. That's why one of the more interesting recommendations from the Taskforce is the idea of a "CTO as a Service" model for SMEs. The government's view is that smaller businesses need easier access to senior technology leadership, even when employing a full-time CTO isn't realistic.

Always start with an understanding of how the business works today

From our perspective, that's not a future idea. It's something businesses need now. At ADNS, we provide virtual Chief Technology Officer (vCTO) services for clients that need strategic technology leadership without the cost of hiring it in-house. That means helping businesses understand where they're losing time, where risk exists, where technology investments make sense, and just as importantly, where they don't.

Sometimes the right answer is introducing something new. Sometimes it's making better use of what you've already bought. That's why we work closely with our clients before recommending tools, looking at what's already being used, which licences are active, where time is spent, and which processes people find frustrating.

A finance process that takes hours each week. A sales team manually updating records. A manager creating the same reports every month. That's where the best opportunities tend to be found. The government's ambition is clear, and the direction of travel is encouraging.

The next challenge is making sure businesses don't confuse access with adoption, or adoption with value. Because AI isn't going to make the UK more productive on its own. People, process, governance, training, and clear leadership still matter. The businesses that get those foundations right will be the ones that see the biggest return.

If you’re interested in finding out more about assured AI adoption or simply just starting out your AI journey within your business, get in touch today.