A Business Owners Guide to Adopting AI

Artificial Intelligence (AI) is no longer something reserved for tech giants, it’s becoming a powerful (and practical) tool for organisations of all sizes. And this is revolutionising how Small-to-Medium Enterprises (SMEs) function. From automating time-consuming manual processes to enabling smarter decision-making, AI adoption in business is unlocking new levels of efficiency, innovation and growth. 

For SMEs it represents an opportunity to do more with less, a game-changer in today’s fast-paced environment. 

But for many companies owners and HR professionals the adoption of AI in business still raises lots of questions. What tools should you use? Where should you start? And how do you ensure your team is ready?

If you’re ready to have those questions (and more) answered, read on. 

What does AI adoption in business actually mean?

AI adoption in business simply means using artificial intelligence technologies to improve how your company operates. It’s not about replacing people with robots, it’s about using software to take care of repetitive, time-consuming tasks, provide faster insights and help your team make better decisions.

Think of it as bringing in a digital assistant that never sleeps. For example:

• Automation: Artificially intelligent tools can handle admin tasks like data entry, invoice processing or rostering—giving your team more time to focus on meaningful work.
• Customer service: Artificially intelligent-powered chatbots can respond to customer queries instantly, even outside of working hours, improving service while reducing response time.
• Data analysis: Automation can sift through reports or sales data in seconds, identifying trends or potential risks that would take hours for a person to find.
  

For SMEs in the UK, this is especially relevant. With rising wage pressures, talent shortages and hybrid work models becoming the norm, adopting AI in your business is no longer a luxury, it’s a strategic move. Even simple tools like AI writing assistants, automated HR systems or predictive scheduling software can make a measurable difference in productivity, compliance and employee satisfaction.

In short, AI adoption means using smart technology to do work smarter, without needing to be a tech expert or a big-budget enterprise. It’s about leveling the playing field and empowering SMEs to achieve more with less. 

Why now? The growing case for adopting AI in your business

It’s become clear that AI adoption in business is accelerating at a rapid rate and for good reason.

AI is no longer an emerging trend, it’s a necessity. From enhancing internal operations to improving customer experience, AI adoption in business is helping organisations unlock new efficiencies, reduce costs and stay competitive in fast-changing markets.

Across the UK, more SMEs are turning to AI and automation to drive smarter decisions and streamline everyday tasks. As government support grows and tools become more affordable, SMEs have a unique opportunity to move early and reap the rewards.

So why is now the time to invest in introducing tech? 

Benefits of early adoption

It’s never too late to adopt automation, there are significant benefits in being an early adopter. Our recent Work that Works report dives into the productivity puzzle for SMEs including the biggest productivity drains and gains. When it comes to AI, people who use AI tools/apps (at least weekly) are 23% more likely to say they’re making an impact at work. 

Implementing something new can feel intimidating and perceived as expensive. Luckily, the reality is much brighter. Adopting AI in your business today doesn’t require a massive budget or a technical team. In fact, early adopters often report practical, fast-moving benefits:

• Time-saving: Automate repetitive tasks like scheduling, data entry and reporting so your team can focus on meaningful work.
• Faster insights: Artificially intelligent tools can analyse data in seconds, helping you make decisions quicker and with greater confidence.
• Scalability: As your company grows, artificial intelligence and automation can scale with you, handling increased workloads without additional headcount.
• Cost reduction: Automation can cut down on operational expenses, from reducing manual admin to improving energy use and resource planning.

Risks of waiting too long

Delaying AI adoption in business can have consequences. As your competitors implement new tech, the gap in performance and cost-efficiency could grow. AThe Work that Works report shows that organisations who have implemented AI are 50% more likely to feel prepared for the next 2-3 years ahead, it’s one way organisations can future proof. 

Here are some of the main risks of waiting too long to adopt new tech:

• Falling behind: Companies adopting artificial intelligence now are setting new standards for speed, service and value. Delaying means risking customer churn or talent loss to more agile competitors.
• Ongoing inefficiencies: Manual processes eat up valuable time and budget. Without automation, your team may struggle to keep up as demands grow.
• Lost opportunities: From missed data insights to delayed service improvements, the cost of inaction compounds over time, especially in a high-inflation, fast-paced environment.

6 practical steps to begin adopting AI in your business

Want to adopt AI in your business but aren’t sure where to start? We’re here to help. 

1. Identify repetitive or data-heavy tasks

The first step is to look at where you’re losing time and what tasks are repetitive. These time-consuming or manual jobs are the perfect candidates to hand over to AI. Think of tasks such as invoicing, scheduling, onboarding paperwork and timesheet approvals. 

These are often low-hanging fruit that automation and artificial intelligence can handle quickly and reliably.

2. Use AI features on existing platforms

The good news is, you don’t need to be a developer or data scientist to get the most out of tech. And there are plenty of user-friendly platforms that are built for SMEs. 

Some of our favorite platforms are:

• Employment Hero: Our Employment Operating System (EOS) is perfect for dealing with anything to do with employment. From hiring to onboarding, managing complex payroll and helping your organisation stay compliant. 
• Hubspot: The powerful CRM platform has AI features that help to automate sales, marketing and customer service tasks. The AI features can help SMEs score leads based on likelihood to convert, automate email sequences and generate content suggestions. 
• Tidio: An AI-powered chatbot and live chat tool ideal for SME websites. Tidio’s AI can answer frequently asked customer questions, provide 24/7 support and guide visitors through your services or product range. It also integrates with platforms like Shopify, WordPress and Wix. 

3. Start with one low-risk use case

Starting small and working up is the best way to build trust in platforms and get your team onboard. So choose a simple, non-critical area to test your tools first. This could be getting tools to proofread emails before sending or summarising meeting notes. 

Not sure which tools to kick off non-critical tasks with? Here are a few we’d recommend:

• ChatGPT
• Gemini
• CoPilot
• Perplexity

Starting small also enables you to measure results, minimise risk and build confidence without overhauling day-to-day operations.

4. Upskill or consult

The great thing about tools on the market today is that you don’t need to be an expert. However, a little training goes a long way. 

Upskilling not only means your team will feel more confident using new software, but it also helps to encourage day-to-day usage and help them feel empowered. 

There are several ways you can help your team upskill:

• Made Smarter – digital adoption support for SMEs
• DSIT’s AI Skills for Business – government-backed guidance on AI readiness
• Local accelerators, chambers of commerce or tech hubs may also offer AI adoption programmes
• Hire a consultant to help identify opportunities and implement tools. 

5. Ensure data security and compliance

As a business owner, leader or HR professional, you know better than anyone that compliance is essential. So before implementing any tool, make sure it meets GDPR and UK data protection standards. 

Choose vendors with transparent data practices and clear privacy policies. Especially in HR and finance, protecting employee and customer data is essential for trust and compliance. Ask:

• Where is the data stored?
• How is it used and processed?
• Can I control or delete it?

6. Review and scale based on outcomes

Implementing new software isn’t a one-and-done, you need to be continuously reviewing the impact. After a few weeks or months of using a new platform, review the impact by asking yourself (and your team):

• Did the tool save time or reduce errors?
• Is the team using it confidently?
• What feedback have you received?
  

If it’s working, consider expanding it to other functions. This iterative approach helps build trust, demonstrate value and ensure adoption grows at a sustainable pace.

Common challenges in AI adoption and how to overcome them

While the benefits of AI adoption in business are clear, many SMEs still hesitate due to common concerns, cost, complexity, staff resistance or a lack of time and technical know-how. 

The good news? These challenges can be addressed with the right mindset and strategy.

Overcoming resistance to change

Many companies find that one of the biggest hurdles they face is internal pushback, often from employees that fear artificial intelligence will replace their jobs or increase their workload. The reality is, tech works best when it supports people, not replaces them. 

Here’s how to bring your team along on the journey:

• Involve staff early: Don’t just roll out a new tool and hope for the best. Ask team members where they’re experiencing repetitive tasks or bottlenecks. Involving them in the decision-making process builds trust and ownership.
• Communicate clearly: Explain how the tool will benefit them, saving time, reducing admin and allowing them to focus on more meaningful work. Position tools as an assistant, not a threat.
• Provide simple training: Choose intuitive tools and offer brief training or video walkthroughs. When staff feel confident using the technology, adoption rates improve significantly.

Budget-conscious approaches to AI

Another common concern for SMEs is cost. Luckily adopting AI in your business doesn’t have to break the bank. 

Here are a few practical and cost effective ways to get started

• Use free or freemium tools: Many platforms offer robust free versions or trial periods. Tools like Tidio (chatbots) and Grammarly (writing assistant)provide real value with no upfront investment.
• Start with a single, high-impact use case: Instead of overhauling your systems, implement AI in just one process, like automating customer responses or payroll reporting. This minimises risk and helps build internal confidence.
• Tap into government support: UK programmes like Made Smarter and Innovate UK offer funding, resources and guidance specifically for SMEs exploring digital transformation.

Artificial intelligence doesn’t require a huge budget or an IT team, it just requires a smart, strategic start

Build a smarter, more efficient business with AI

The days of AI adoption in business being for just tech giants are gone. And it’s something all SMEs can cheer about. The practical and accessible nature of tech in today’s world helps SMEs keep up and work faster, smarter and more strategically. 

With the right tools and mindset, even the smallest organisations can begin to scale smarter, reduce costs and free up their people to focus on what matters most. Whether you’re just getting started or looking to deepen your digital capability, the path forward doesn’t need to be complex.

If you’re looking for ways to supercharge your output and improve productivity, cutting down time spent on HR or payroll admin could be just what you need. Our Employment OS takes the traditional isolated aspects of employment and integrates them into a seamless, human and AI-powered solution that empowers employers, employees and job seekers alike. 

Download the guide today.

Business AI adoption FAQs

What is the best way to start adopting AI in business?

The best way to start adopting AI in your business is to start small with a clear goal. Focus on one repetitive or admin-heavy task, like onboarding, payroll reporting or customer queries and choose a platform that’s easy to use and integrates with your existing systems.

Start with impact, not complexity. Measure, refine and grow from there.

What industries benefit most from AI adoption?

While AI can add value to nearly every sector, some industries are seeing especially strong gains:

• Professional services (HR, legal, finance): Automate admin, improve accuracy and free up time for high-value work.
• Retail and eCommerce: Use AI for customer service chatbots, personalised marketing and smarter inventory management.
• Healthcare: Streamline scheduling, patient communication and data analysis for faster decision-making.
• Manufacturing and logistics: Optimise supply chains, reduce downtime and predict maintenance needs.
• Hospitality: Automate bookings, manage rosters and enhance guest service with AI assistants.

For SMEs in any industry, the key benefit is the same: doing more with less—faster, smarter and more efficiently.

What are the risks of adopting AI?

While AI offers powerful benefits, it’s important to be aware of the risks, especially for SMEs without dedicated tech teams:

• Data privacy and compliance: Mishandling sensitive employee or customer data can lead to GDPR breaches. Always choose trusted vendors with clear security policies.
• Overdependence on automation: Relying too heavily on AI can weaken human oversight. Use AI to support, not replace, critical thinking and decision-making.
• Staff resistance: Without clear communication, employees may fear job loss or feel overwhelmed by new tools. Involve them early and focus on how AI helps, not threatens.
• Cost creep: While many AI tools are affordable, hidden costs can arise from scaling too fast or layering multiple subscriptions.

Is AI adoption expensive for SMEs?

No, AI adoption doesn’t have to be expensive for SMEs. While AI once required big budgets and technical teams, today’s tools are designed to be affordable and accessible for SMEs. Many platforms offer:

• Free or freemium plans
• Flexible subscriptions based on team size
• Built-in AI features in tools you may already use (like CRMs, HR software or accounting platforms)

The key is to start with one use case that delivers clear value, like reducing admin time or improving customer response rates. In many cases, the time saved quickly outweighs the cost.

With the right approach, AI adoption in business doesn’t have to be expensive—it just has to be strategic.