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UK small businesses lead Europe in AI use, research reveals

Research by IONOS showed UK small businesses had the highest AI use at 37% compared to Germany at 32% and France at 26%. 

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UK small businesses lead Europe in AI use, research reveals
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IONOS research found nearly four in 10 (37%) UK small businesses are now using artificial intelligence (AI) to grow their operations, up from just 20% in 2024. 

The research showed UK small businesses had the highest AI use at 37% compared to Germany at 32% and France at 26%. 

Respondents said the main benefits were making processes simpler and faster (45%), coming up with creative ideas (41%) and freeing staff from basic tasks (39%). 

The number of firms using AI for creative ideas also rose by nearly 10% since last year. 

Increased use was reported as well for product development, rising by 11%, and firms seeing AI as a way to get ahead over rivals, up 9%.

Additionally, the research highlighted lack of time (46%) and cost (54%) as key obstacles, unchanged from the past two years. 

Website development is still the investment priority at 40% while AI adoption is now at 27%, up from 16% last year.

Achim Weiss, CEO at IONOS, said: “I understand the challenges that SMEs face. But the assumption that digitalisation is too complex, too expensive and too insecure is no longer true. 

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“More and more SMEs are recognising the value of AI to improve the entire online presence, from website design to email marketing. 

“At IONOS, we’re making these technologies accessible and affordable for everyone.”

Data control was a clear priority, with 82% of small firms rating it as important when choosing a web hosting or cloud supplier. 

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Half (49%) put IT security and data protection as a digital focus, while most respondents (83%) wanted providers to keep their personal and business information safe from foreign authorities.

Weiss said: “The UK economy needs strong, digitalised SMEs – especially in times like these. In this day and age, it’s critical that technology providers can guarantee true digital sovereignty. 

“We provide simple, affordable solutions for digital success that are GDPR-compliant, developed on our own tech stack with the data remaining in our data centres in the UK and Europe.”

“AI can be a real game changer for SMEs when it comes to digitalisation! At IONOS we make modern key technologies such as AI and the cloud affordable, easily, and securely accessible so that customers can focus on the essentials: their ideas, their core business and their customers.”

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