Artificial intelligence is becoming a routine part of business activity.
From automating customer support to improving how information is used, small and mid-sized enterprises are testing where it can make the most difference.
Interest is strong, yet leaders still weigh up practical issues such as team capability, budgets, data protection and competitive pressure.
Across more than 600 UK and Irish companies in our portfolio, we see a wide spread of adoption.
Some firms are trialling tools that save time or cut operational costs.
Others are developing new products shaped by machine learning and automation.
What unites them is a growing recognition that AI now influences decisions in HR, marketing, operations, product development and beyond.
For most, the central question is how to apply AI in a way that supports their business model and growth aims.
Opportunity or threat?
Leaders often view AI from two angles. Many see gains in speed, accuracy and efficiency. Others worry that competitors – particularly new entrants – could use these tools to close the gap or imitate existing offers at pace.
Both points hold weight: increased productivity can sit alongside increased competitive pressure.
BDO’s September 2025 survey of 500 mid-sized UK firms found that 42 per cent were investing in automation, technology or AI as part of their growth plans.
This sentiment mirrors what we see across our network, though the extent and type of activity varies by sector.
Productivity improvements remain the most widely cited benefit.
Work that once required hours can now take minutes, whether producing reports or managing customer enquiries.
Gains are also evident in data analysis, marketing, content development, customer service, HR and recruitment.
Rather than replacing roles, these tools tend to relieve teams of repetitive tasks so they can concentrate on more demanding work.
Threats
Competition is the concern raised most frequently.
Leaders worry that AI lowers barriers for newcomers and allows larger peers to expand their capabilities at speed.
Cybersecurity remains close behind. While AI can strengthen detection of anomalies or unusual activity, it can also introduce weaknesses if mismanaged.
Data protection, bias and reputational risk remain top of mind.
Despite these concerns, most leaders accept that avoiding AI entirely carries its own hazards, especially as expectations among clients and suppliers evolve.
How prepared are SMEs?
Many firms already have dedicated budgets for AI projects, with others planning to introduce them soon.
The main difference lies in capability: some possess in-house expertise, whereas others depend on external partners or targeted training to build confidence.
Investment in people features as strongly as investment in tools. Upskilling, selective recruitment and access to specialist guidance remain central to the plans of companies intent on growth.
Manchester-based Apprentify is the UK’s leading digital and tech training provider and helps SMEs build confidence in AI, data and wider digital skills, aligning learning with business needs.
Jonathan Fitchew, CEO, Apprentify Group
Apprentify Group CEO Jonathan Fitchew said: “We support businesses as they develop their workforce, particularly in digital skills including cyber security, data analytics, AI and leadership.
“Most apprentices today are existing employees looking to strengthen their capability.
“With the digital economy expanding rapidly, our programmes help companies address skills gaps and raise productivity so they are ready for the demands ahead.”
Maximising AI’s potential
Across different stages of adoption, SMEs share the aim of converting interest in AI into measurable outcomes.
This depends on clear objectives, the right expertise and a workplace culture that encourages testing and refinement.
For many, the next phase involves embedding AI within wider digital and growth plans.
This might involve improving customer experience, strengthening data resilience or refining internal processes as the business scales.
Looking ahead
The discussion around AI has moved towards practical application.
Firms that approach it with curiosity, clarity and steady planning are more likely to see lasting gains in efficiency, cost control and customer service.
AI is one element of growth, but an increasingly influential one.
Thoughtful adoption today can help smaller firms build resilience and position themselves well for the years ahead.