SMEs shouldn’t feel threatened by AI, according to a survey by investor BGF.
BGF surveyed business leaders across its 400-company investment portfolio to assess the impact of AI on SMEs and received an overwhelmingly positive reception.
A total of 89 per cent of respondents viewed AI as an opportunity, with only a handful (7 per cent) seeing it as a potential threat.
Headline findings include:
- 64 per cent of SME leaders see AI as a very significant opportunity for their business, while an additional 25 per cent consider it as a potential opportunity
- One in three companies have allocated budgets for AI, with nearly 40 per cent intending to do so in the next year
- Over 50 per cent say they have the necessary AI expertise within their teams
- A quarter of companies are already using generative AI in production, while only 11 per cent say they are not yet considering it
Simon Steward, head of digital at BGF, said: “AI adoption is critical for SME competitiveness. It’s encouraging to see how many SMEs feel they have the people and skills required to embrace AI technology.
“I think this is down to the intuitive nature of AI tools – how naturally they integrate with current systems and how easily end users can interact with them.
“It also speaks to the forward-thinking nature of SMEs, the majority of which are constantly seeking innovative solutions to stay ahead of the curve and drive growth.”
Areas where the new technology is being rapidly adopted include customer service, data analytics, and content creation.
Tools such as chatbots and virtual assistants are automating manual processes or allowing businesses to offer new services they had been previously unable to provide.
AI has also presented opportunities to boost operational efficiencies, helping SMEs stay competitive.
AI is further strengthening many SMEs in areas where they lacked in-house expertise, such as marketing and data analysis.
Others are adopting the technology in fields where they have previously relied on external consultants, including training and recruitment.
Panthera BioPartners, a clinical trials operator backed by BGF since 2022, is actively embracing the use of AI. The company is examining how AI could streamline patient recruitment, improve trial accuracy, and accelerate study timelines.
CEO Stuart Young said: “The introduction of generative AI, especially through advancements in large language and image and video generation, presents a significant opportunity for our business.”
Medigold Health revolutionises occupational healthcare with AI-powered innovation.
Since BGF’s investment in 2017 to support Medigold’s acquisitive growth strategy and ongoing innovation, the company has developed ‘Paradigm’, an AI-powered module designed to enhance the efficiency of medical reporting and streamline clinician workflows.
Alex Goldsmith, CEO of Medigold Health, said: “Assistive technology, particularly with report generation, is saving clinicians time, leading to a 58 per cent rise in clinician retention and greater job satisfaction.
Jonathan Behr, clinical innovations director at Medigold Health, added: “The launch of Paradigm in March has been very successful, with over 70,000 case reports already produced. It has allowed consultation time to be reduced, meaning more cases can be seen and more people helped.”
According to the survey, financial commitments into AI vary. About 25 per cent of businesses are hesitant to allocate funds due to competing priorities or uncertainty about AI’s role in their operations.
Despite widespread enthusiasm, concerns remain. Some SMEs flagged worries that AI will lower entry barriers to markets, intensifying competition.
Around 15 per cent cited concerns about cyber threats and data breaches. The rapid pace of the technology’s development, coupled with challenges around data governance and the costs of upskilling, has made some businesses particularly cautious.
The survey results are based on responses from 84 SMEs which have received equity backing from BGF.
BGF was set up in 2011 and has invested £4n in over 600 companies to date making it the most active investor in the UK.