Digital Revolution – Part Four

Economic Unit

Climbing the Path of Technology

By automating repetitive and time-consuming tasks, artificial intelligence (AI) enables business owners to focus their limited time and energy on meaningful, in-person interactions that truly drive business growth. The goal is not to replace the personal touch of business owners, but to create the space and capacity for greater impact.

To consolidate these quick wins and prepare for deeper digital adoption, small and medium-sized enterprises (SMEs) should focus on the following three steps:

1. Review Your Technologies
Evaluate all existing applications and software. Identify where data is trapped in silos and where repetitive, manual processes are slowing operations. This review helps pinpoint areas where adopting an integrated platform will have the greatest effect.

2. Use Integrated Platforms
Seek platforms that connect core business functions. Linking accounting and invoicing with customer management and marketing tools creates an integrated ecosystem that lays the foundation for more advanced AI capabilities.

3. Prioritize Learning
Encourage employees to explore and experiment with AI tools. Strengthen basic skills to build confidence and make technology adoption easier. On a broader scale, the British Chambers of Commerce (BCC) emphasizes the importance of investing in digital skills as part of a wider effort to increase productivity.

Recommendations for Policymakers

Drawing on this report and the BCC’s “Digital Revolution” report (2024), we propose the following recommendations for policymakers:

1. Break Down Data Silos
Most SMEs operate with fragmented sets of standalone applications, which limits efficiency and prevents them from fully leveraging AI. The government should support the creation of an open data ecosystem that enables companies to control, integrate, and transfer their data across platforms. This will lay the groundwork for developing AI agents capable of streamlining and optimizing key business functions — from sales and marketing to finance and compliance.

2. Strengthen Foundational AI Skills
AI literacy should be incorporated into both formal education and lifelong learning. Targeted programs should help the workforce develop core skills for using AI tools in content creation, administrative tasks, and data management. This will accelerate AI adoption and reduce the digital trust gap among SMEs.

3. Position AI as a Growth Engine
AI-related policies should shift from a narrow focus on cost reduction and optimization to broader goals of productivity and growth. Governments should encourage AI adoption in areas such as customer engagement, market expansion, and export development to unlock new opportunities for SME scalability.

4. Launch an AI Awareness Program for SMEs
Based on the final report of the SME Digital Adoption Taskforce, the government should launch a nationwide campaign to raise awareness of the practical benefits of AI for small and medium-sized businesses, tailored to regional and sector-specific needs.

5. Appoint an “AI Champion” for SMEs
A dedicated AI advocate, with deep expertise in business and digital transformation, should lead efforts to accelerate AI adoption among SMEs, represent their needs, and help remove barriers to implementation.