UK small businesses are increasingly confident using artificial intelligence (AI), but many are yet to apply the technology to more complex business tasks, new research has found.
A study of 1,000 UK small business owners by the Small Business Institute and Accio, Alibaba.com’s agentic AI platform, found that 70 per cent are somewhat or very confident using generative AI.
However, fewer than half (48 per cent) said they use it regularly, suggesting a gap between confidence in the technology and its practical use across their businesses.
Among small businesses already using AI, almost three quarters (74 per cent) use it for content creation and marketing. By comparison, only a third use it for data analysis or reporting, while just 5 per cent apply AI to supply chain management.
The research suggests that while generative AI is becoming part of everyday working practices, its use remains concentrated on relatively straightforward tasks rather than more complex business operations.
Agentic AI, which can carry out multi-step tasks on a user's behalf, is also still at an early stage of adoption. Only 5 per cent of small businesses said they use agentic AI regularly, while 44 per cent had heard of the technology.
However, 68 per cent of entrepreneurs said they wanted to learn more about what agentic AI could do, including researching options, comparing information, identifying potential solutions and helping move tasks towards completion.
The research also found that 60 per cent of small business owners see improved work-life balance as a potential benefit of agentic AI, while half believe it could free up more time for marketing their businesses and winning new customers.
Michelle Ovens, CEO and founder of Small Business Britain, said the findings showed “untapped potential” for AI to change how small businesses are managed.
“Small business owners wear many different hats when running their businesses, so it’s hugely encouraging to see growing confidence in AI as a critical tool,” she said.
“The research also makes clear AI’s – and particularly agentic AI’s – untapped potential. There is a real opportunity for technology to completely revolutionise how small business owners manage their business, potentially freeing up more time to focus on the areas that can really take their business to the next level.”
Michelle Lau, managing director of Alibaba.com, said much of current AI adoption among small businesses was taking place “at a surface level”.
“We’re entering the era of agentic AI with tools like Accio, which can research markets, evaluate suppliers and manage day-to-day operations on a business’ s behalf, enabling small businesses to progress more business-critical workstreams at once, access more insightful information on suppliers, trends and market data and save more time day-to-day for greater work-life balance or other areas of their business,” Lau added.