AI is one of the most talked‑about technologies around today, with AI-driven tools helping reshape the way businesses operate and offering many benefits. Yet, despite this, new research has shown some small businesses are still hesitant to take the leap.
A survey of over 8,000 small businesses across Europe has revealed that while SMEs are keen want to embrace AI, they often don’t know where to start and lack in confidence.
Key findings highlighted in the report include:
- Uncertainty about digital tools: 30% of small businesses said they don’t know which digital tools they should be using.
- Skills gap: More than one in four reported lacking the skills or knowledge to get started with AI.
- Greater hesitancy among older businesses: Companies operating for more than a decade showed reluctance rates above 60%, suggesting that established firms may feel less agile when it comes to adopting new technologies.
- Trust issues: Nearly half of respondents trust AI less than human‑led work, citing concerns around data security, accuracy, and maintaining their brand voice.
- Need for support: Around 35% said step‑by‑step guidance would help them progress, while 38% wanted dedicated training or workshops.
Expert guidance and support
At Dragon, we see these findings reflected in our own conversations with small businesses, who we know are curious about AI, but can feel overwhelmed by the terminology and the fear of making the wrong choice.
It’s one the reasons why we’ve been running dedicated AI workshops, with fellow local AI experts, to offer businesses practical advice and tips on all aspects of using AI within the business environment. Keep an eye on our social platforms for more details on upcoming events.
We’re also excited to now be offering AI training and consultancy, helping businesses with their AI readiness and preparation. Contact us to find out more.
The AI opportunity for SMEs
One reason we are so proactive in trying to support our customers and other small businesses to make the most of AI, is just how transformative it can be! Far from being just a ‘nice to have’, it can be a critical driver of competitiveness, productivity and growth. Something that a growing body of research shows:
- Boosting productivity: Research from the University of St Andrews found that SMEs adopting AI experienced productivity gains of between 27% and 133%. These improvements come from automating repetitive tasks, streamlining workflows, and enabling smarter decision making.
- Economic impact: A Microsoft and WPI Strategy report estimates that widespread AI adoption by UK small businesses could add £78 billion in economic value over the next decade. This reflects not just efficiency gains, but also the creation of new high‑wage jobs and innovation opportunities.
- Competitive edge: Analysis from SME Scale shows that 68% of small businesses have already adopted AI tools, and those that have are more likely to plan significant growth compared to non‑adopters (74% vs 65%). In other words, businesses that hesitate risk falling behind competitors who are already leveraging AI to move faster and smarter.
- Cost savings: AI can reduce overheads by automating manual processes, improving accuracy, and cutting down on wasted time. From smarter inventory management to automated customer service, these savings can be reinvested into growth.
Microsoft Copilot
One exciting development is the arrival of Microsoft Copilot, which brings AI directly into the tools businesses already use every day. Copilot is designed to sit inside familiar applications like Outlook, Word, Excel, PowerPoint, and Teams, making AI accessible without requiring new systems or specialist knowledge.
Here are just a few ways Copilot is already helping small businesses:
- Outlook: Summarises inboxes, highlights priorities, and drafts responses.
- Word: Creates first drafts of letters, blogs, and social posts that can be personalised and refined.
- PowerPoint: Turns reports into presentations in minutes.
- Excel: Spots trends, patterns, and anomalies in data.
- Teams: Transcribes meetings, identifies action points, and even analyses sentiment.
The message is clear: SMEs that embrace AI stand to gain in productivity, competitiveness, and resilience. Those that delay risk missing out on efficiency gains and losing ground to faster‑moving rivals.
With uncertainty shown to be the biggest barrier to AI adoption, at Dragon, we’re stripping away the jargon to provide trusted guidance that helps businesses integrate AI tools safely and effectively.
For example, solutions like Microsoft Copilot can level the playing field. A small business with limited resources can now access the same kind of efficiency tools that were once reserved for large enterprises. That’s a game‑changer.
Building confidence through community
One of the most encouraging points coming out of the European survey is the appetite for community and shared learning. Many small businesses said they would feel more confident adopting AI if they had access to workshops, peer networks, and step‑by‑step guidance.
At Dragon, we believe this is where the real transformation happens. By creating spaces where businesses can learn together, share experiences, and demystify technology, we can build confidence and accelerate adoption.
Events, training sessions, and one‑to‑one consultations all play a role in helping businesses move from curiosity to capability. As more businesses embrace AI, the collective knowledge then grows, making it easier for others to follow suit.
In summary
Small businesses want to embrace AI, but they need confidence, clarity, and support to make it happen.
At Dragon, we’re committed to being that trusted partner. By stripping away the jargon, providing practical guidance, and showcasing real‑world applications like Microsoft Copilot, we are helping small businesses harness AI as a powerful tool for growth.
For an informal chat about how we could help your business, please email: info@dragon-is.com or call us on 0330 363 005.
