Why small businesses struggle to adopt AI — and how to move forward

Why small businesses struggle to adopt AI — and how to move forward

AI has become accessible to small businesses almost overnight. Yet as Kelly Salter, Commercial Director at names.co.uk (part of team.blue), explains, many still struggle with skills gaps, confidence, and trust. Bridging this divide requires practical guidance and mindset change — helping small businesses see AI as a partner, not a threat.


The potential of AI to drive growth for organisations has been a key focus for business leaders, technology experts and governments this year. While advanced AI capabilities were historically reserved for major technology players who could afford it, these tools have become accessible to small businesses almost overnight. The challenge today is keeping up with technology that is advancing far faster than most small businesses can adapt to.

What we’re seeing isn’t a lack of ambition or motivation among business leaders, but a lack of understanding and confidence. Our recent AI and digital maturity survey for the UK and Ireland shows that more than half (53%) of small businesses are not using AI and have no plans to start. Three barriers repeatedly surface when we explore the reasons behind this.

Firstly, many businesses feel they lack the skills or knowledge to get started. Most digital tools and guidance assume a level of technical confidence that many small businesses simply don’t have yet. In fact, 31% say this is their biggest obstacle. Secondly, cost is a big concern, with 23% citing it as their primary barrier. Lastly, 22% are held back by not knowing where to begin or finding AI too complex to approach.

Beyond practical barriers, a deeper issue of trust remains. 52% of respondents say they trust AI less than human-led solutions. This hesitation is natural; as AI capabilities grow, concerns about its role become more prominent, and the idea of AI replacing people can feel unsettling. But the real value of AI lies in how it supports and enhances human work. By taking on repetitive tasks and streamlining everyday workflows, AI frees teams’ time so they can focus on higher-level, strategic initiatives that drive meaningful growth. 

Together, these factors create a gap, not in desire, but in understanding and perception, which is what is keeping AI out of reach for many small businesses.

The solution is to simplify the path and make tools genuinely usable. When this happens, AI stops being intimidating and starts becoming a catalyst for creativity, efficiency, and growth. This requires a dedicated focus on support and a shift in mindset.

One way of doing this is by providing a different kind of support. Business owners have been clear about their needs, that to move forward, they require practical help. Our survey shows 35% want step-by-step tools or guides, 31% need advice on what tools to use, and 29% prefer training through workshops and webinars. Providing this practical guidance is the first step to making AI accessible.

Moreover, the narrative of AI replacing human workers is overly simplistic and holds workers back from embracing it as a helpful tool to be leveraged. We need to start debunking these myths and positioning AI as a collaborative partner that can enhance the work employees are already doing. Adopting this perspective is crucial for building trust and encouraging adoption within a business.

The true value of AI lies in its ability to automate tasks and streamline workflows that would have previously taken much more time. When used properly, AI can empower teams to focus on higher-level, strategic initiatives that drive business growth – something that should be a priority for small businesses. 

Making the AI experience more accessible and secure ensures digital tools empower the people behind them. The opportunity is not just to help small businesses adopt AI, but also to empower them to shape what is possible with it. When small businesses have the tools to grow, the benefits are felt not just within the business itself, but across the communities they serve. The real impact comes when businesses use AI to unlock growth, improve efficiency, and focus on the work that drives meaningful results.



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