Digital Revolution – Part One

Economic Unit

A Turning Point for Small and Medium Enterprises (SMEs): Unlocking the Next Level of Artificial Intelligence

Preface
Small and medium-sized enterprises (SMEs) in the United Kingdom are currently undergoing a period of change and transformation. Through our collaboration with British Chambers of Commerce, we know that these companies have faced significant pressures, from rising costs and reduced investment to challenges in hiring talent. However, amid these difficulties, an important and positive shift has emerged: many companies now recognize that technology—especially artificial intelligence (AI)—is no longer just a futuristic tool but a real and immediate instrument for increasing productivity and strengthening economic resilience.

At Intuit, our mission is to support the growth and prosperity of SMEs. Today, this mission is stronger than ever through our new AI-powered platform. We are no longer limited to isolated applications and scattered data; instead, every aspect of a business—from customer acquisition to cash flow management—is seamlessly integrated.

Our findings indicate that despite increasing AI adoption, many businesses have yet to fully realize its benefits. This is because the tools they use are often fragmented and not connected. As a result, the gap between AI-ready companies and those struggling to align with this trend is widening. This is where the importance of a unified platform becomes clear: by consolidating data in a single system, the next generation of AI can be unlocked.

Imagine an AI agent acting as a tireless and active member of your team—a system that can automatically reconcile accounts, send invoices at the right time, and even predict and alert potential cash flow issues—without any action on your part. This system works across your entire business to automate tasks. The goal is not to replace the personal touch of business owners but to free their time from repetitive administrative tasks so they can focus on higher-value work.

AI has now become a key tool for SMEs to maintain productivity even with smaller teams. It helps businesses achieve financial transparency and make faster decisions. For sole proprietors and micro-businesses, AI enables them to operate with capabilities similar to large companies, enhancing competitiveness.

Through collaboration with the British Chambers of Commerce (BCC), our goal is not just to provide technology but to ensure that all businesses receive the support they need to move AI from potential to practical and tangible progress.

The AI revolution cannot be a top-down process; this change must be inclusive, people-centered, and tailored to the real needs of businesses. With access to integrated and suitable tools, SMEs can not only keep pace with this revolution but also drive it.

Key Findings
AI adoption is increasing, but significant differences exist across sectors.

Although many businesses use AI, they still feel they are not realizing its full potential. In this survey, companies were asked about their use of technology to automate and streamline operations. Only 11% of businesses reported using technology to a “high degree” for automation or simplification, indicating a significant productivity gap. Consistent with broader AI adoption trends, larger companies and those in B2B sectors feel they have automated or streamlined operations more effectively.

AI adoption is expanding across all types of businesses, reflecting its growing reach, yet the data also highlight deep differences between sectors. Nearly 46% of B2B service companies—in areas such as finance, legal, and marketing—use AI, whereas adoption in B2C and manufacturing companies is only 26%.

When asked about the types of AI they use, three main areas emerged: …