By Alice Chambers |
AI could help boost productivity, innovation and competition for small and medium-sized businesses (SMEs) in the UK to the amount of £78 billion ($105 billion) in additional economic value by 2035, finds Microsoft.
The report, Unlocking Regional Growth: The impact of AI adoption by SMEs, highlights how generative AI tools like Microsoft 365 Copilot can fuel economic growth by streamlining a variety of tasks.
“The £78 billion opportunity isn’t just a number – it’s growth that should be felt in communities from Kent to Cumbria,” said Hugh Milward, vice president of external affairs at Microsoft. “To unlock it, we need co-ordinated action from government, regional mayors and industry to put the transformative benefits of AI into the hands of the people and businesses driving regional growth.”
Additionally, Microsoft predicts that the West Yorkshire region could benefit from an additional £4.6 billion ($6.2 billion) by 2035. Meanwhile, Liverpool and Cardiff have the potential to increase their regional economies by £2.8 billion ($3.8 billion) and £2.4 billion ($3.2 billion) respectively.
The report also highlights that less than one-in-five UK SMEs have adopted AI and the rate of take up is not on pace with government predictions.
“AI is already reshaping the world – and with the right investment, support and guardrails, it has the power to do a lot of good,” said Steve Rotheram, mayor of the Liverpool City Region. “But we’ve got to make sure it’s not just the big firms that benefit.”
Microsoft suggests three recommendations for SMEs to maximise on the benefit from AI: put AI at the heart of all local growth plans, pilot a regional generative AI adoption challenge, and explore incentives to drive SME digital adoption.
“Generative AI is a gamechanger, not just for the big players, but for small businesses and communities in every corner of the UK,” said Feryal Clark, parliamentary under-secretary of state for AI and digital government for the UK. “This research highlights the huge potential generative AI offers smaller businesses when they get the support they need to use it – cutting admin, saving time and ultimately driving growth.”