October is traditionally the time of year where UK businesses begin to focus on their financial priorities for the coming year. Leadership teams review performance, plan investments, and align their budgets with the government’s Autumn Statement. This year, however, the process feels different. The Autumn Statement has been pushed back to 26 November, an unusually late date. This delay, coupled with the uncertainty about the fiscal environment, has resulted in a unique opportunity. It’s an ideal time for businesses to step back and assess their readiness to embrace change, especially in relation to artificial intelligence (AI).
AI Adoption in SMEs: A Closer Look at Readiness
This is the second article in my series exploring AI adoption in Small and Medium-sized Enterprises (SMEs). Last month we discussed why, despite acknowledging the significance of AI, only a third of these businesses are actually utilising it. This month, we’re focusing on readiness. We’re not just considering whether leaders are familiar with AI, but rather if their businesses are using it strategically and confidently.
Readiness versus Recognition
While familiarity with AI is at an all-time high, with a recent YouGov poll showing that 86% of SME leaders say they are familiar with AI, only 31% are actually using it in practice. This highlights a critical point: recognition does not equate to readiness. It’s a dangerous assumption for leaders to believe that awareness is sufficient.
AI readiness extends beyond just possessing the right tools. It encompasses leadership alignment, skilled personnel, and reliable data. Many leaders express uncertainty about how to begin implementing AI, or they prefer to adopt a ‘wait and see’ approach. However, waiting can lead to falling behind competitors who are already using AI to improve productivity and enhance customer experience. On the other hand, rushing to implement AI without a clear strategy can result in wasted resources and loss of trust.
What Does AI Readiness Really Mean?
AI readiness involves five key foundations:
- Strategy: A clear plan showing how AI supports growth, efficiency, or resilience.
- Skills: Leaders and staff possessing the confidence and knowledge to use AI responsibly.
- Data: Reliable, accurate, and accessible data systems. AI is only as good as the data it’s fed.
- Culture: An organisation open to change and experimentation.
- Governance: Understanding and managing the ethical, security, and compliance implications.
When these foundations are in place, strategic decision-making is enabled, and a planned approach to pilots and upskilling can be implemented, both of which are core drivers for growth.
The National Picture: Promising but Patchy
The picture of AI readiness across the UK’s SME sector is mixed. A survey discussed in HR News earlier this year found that 82% of medium-sized businesses expressed confidence in using AI, compared to just 37% of small businesses. Additionally, 52% of SMEs cited a lack of internal skills as their biggest barrier to AI adoption, with only 12% having invested in AI-related training.
Despite these challenges, the benefits of AI for those businesses already using it are tangible. Studies from St Andrew’s Business School indicate that productivity gains for SMEs could be up to 133%, while other reports show increases in work quality, reduced work-based stress, and increased creativity. It’s becoming increasingly clear that well-utilised AI not only saves time but also improves confidence and work quality.
There is cause for optimism, with the UK Government working hard to position the country as a global leader in AI innovation. Encouragingly, just over 50% of businesses believe AI is an important long-term strategic goal, according to TechUK.
However, many businesses are hesitant to adopt AI due to concerns about cost and uncertain Return on Investment (ROI). Other issues include a lack of trust, uncertain trading conditions, and concerns about infrastructure and governance. Microsoft suggests that while more than 80% of business leaders expect AI to transform their operations within 18 months, fewer than half of IT decision-makers are factoring AI readiness into their hardware strategies, creating a contradiction.
Benchmarking AI Readiness
Without a benchmark, businesses can’t know whether they’re ahead, behind, or standing still in their AI journey. That’s why we’ve launched the UK SME AI Readiness Check-up. This short survey gives leaders a clearer picture of where their business stands on its AI journey and contributes to a national dataset.
With October marking the start of planning season, and the Autumn Statement delayed until 26 November, there is an unusual pause in financial decision-making. This is the ideal moment for leaders to take stock. The biggest risk is not being “behind” today, but being stuck in the same place tomorrow. AI readiness is not a box to tick; it’s a leadership responsibility. Those who move from curiosity to clarity now will set the pace in 2026.
Final Thoughts
Every business leader wants the same outcomes: better decisions, more efficient teams, and stronger resilience in a changing economy. AI can deliver these benefits, but only if the organisation is ready.
Before you finalise your budgets or strategy cycles, take three minutes to complete the UK SME AI Readiness Check-up. Gain clarity on your own position, contribute to a national picture, and be better equipped to lead your business confidently into the year ahead.
Take the survey here.
