SMEs increase AI investment as digital skills gap grows – Funding Circle

Funding Circle has reported that UK small and medium-sized enterprises (SMEs) are increasing their use of artificial intelligence (AI) to improve productivity and stay resilient. 

According to Funding Circle’s latest Impact Report, 65% of SMEs expected growth this year, with digital transformation now a bigger priority than expanding physical sites. 

UK businesses recorded a 21% rise in AI budgets over the last year.

Recent AWS research found that 52% of UK businesses are now using AI, a 33% rise in twelve months, and 92% of those businesses said they saw a direct revenue increase. 

However, the same research found that 38% of UK businesses pointed to a lack of AI skills as the main barrier to using the technology, up from 29% the year before. 

AI literacy is expected to be needed in nearly half of all new UK jobs over the next three years. 

For workers, AI is now the top priority for upskilling, with 40% saying it is the most important area for training.

Data showed that 59% of startups have adopted AI, compared to 25% of large companies.