AI Training for SMEs: What Deloitte’s Research Reveals About Risk and Productivity

Deloitte study highlights a growing gap between employee usage and formal AI training, governance and policy.

Artificial intelligence is fast becoming embedded into our everyday working lives but it appears businesses are struggling to keep up with their employees.

New research from Deloitte, looking at how generative AI (GenAI) is reshaping the workplace, reveals that 63% of UK employees are now knowingly using GenAI tools such as ChatGPT, Claude, and Microsoft Copilot.

Yet training has not kept pace with adoption. Half of all GenAI users have received no formal training at all, yet 51% say it would encourage them to use GenAI more often. 34% also report there being no clear AI policy in place.

So, while usage may be growing, understanding isn’t keeping pace.

For small and medium‑sized businesses, this gap between usage and understanding is becoming a critical challenge. Without AI training or clear governance, SMEs risk missing out on the productivity gains and other benefits AI can deliver.

AI adoption is rising among SMEs but understanding isn’t

Deloitte’s research shows that workers are using GenAI for familiar tasks such as writing emails, searching for information and creating summaries. These are everyday activities that have the potential to be streamlined with the use of AI.

The ease of access to tools like Microsoft Copilot, which is built directly into Microsoft 365’s full suite of products, is further encouraging experimentation and helping accelerate adoption.

However, half of all GenAI users report receiving no formal training. This means employees are experimenting because the tools are helpful and intuitive, but they are doing so without any guidance on accuracy, safety or best practice.

For SMEs, this matters, as when employees use AI without guidance, the risks – from incorrect outputs through to data exposure – will fall directly on the business.

Shadow AI: The hidden risk for SMEs

One of the most concerning trends highlighted in the survey is the rise of shadow AI, referring to the use of AI tools by employees without their employer’s knowledge or approval. Deloitte found that 31% of GenAI users are doing exactly that.

Workers are even paying for tools themselves. UK employees are estimated to be spending a whopping £958 million a year on GenAI tools for work purposes.

Shadow AI happens because people want to be more productive, but they don’t know the rules (or the rules don’t exist!). This has the potential to create problem for SMEs, including:

Sensitive company and personal information may be entered into tools that store or reuse data.

Employees may rely on and trust AI outputs that are inaccurate or biased.
Different people may use different tools in inconsistent ways.
Leaders may not even realise AI is being used at all (which can carry consequences for compliance with rules and regulations, including the EU AI Act)

Why AI governance matters

What this highlights is that AI will already be in use in most organisations. The question is whether it is being used safely. It’s an issue we covered in our recent blog “Why your business needs an AI usage policy”.

Deloitte’s survey shows that only 28% of GenAI users say their organisation has a policy that is clear and up to date.

To address these risks, organisations need AI governance, in the form of a clear, practical set of rules explaining how AI should be used. This should cover:

Which AI tools are approved for use within the business
What types of data can be entered into AI tools
How employees should check AI outputs
What tasks AI is suitable for
Who to ask for help

Aim to establish simple, actionable guidelines early, not just to wait and react if problems arise.

Leadership and confidence with AI

In our recent blog, ‘What are the key barriers to AI adoption for SMEs?’, we referenced a European study that found SMEs are keen want to embrace AI but often don’t know where to start and lack in confidence. Many small businesses say they would feel more confident adopting AI if they had access to workshops, peer networks, and step‑by‑step guidance.

This issue of confidence is also raised in the Deloitte survey, which highlights a lack of leadership confidence. 65% of GenAI users saying they do not hear leaders talk about AI with a clear understanding of it. And some leaders even feel a stigma around using AI, worrying it might undermine their credibility.

But leadership confidence is essential. When leaders understand AI, they can set a clear direction, support employees, and create a culture where experimentation is safe and encouraged. And that confidence comes from understanding and familiarity. The key to unlocking it being training.

Training unlocks productivity

One of the most telling messages from the research was the difference that AI training can make for productivity and effectiveness.

Those employees who understand how to use AI properly, how to prompt it, how to check outputs, how to integrate it into workflows, can drive real, tangible value from it. Those who don’t understand those things, simply scratch the surface.

For SMEs, this is a major opportunity. With the right training, AI can help optimise and automate day-to-day tasks that may be time‑consuming, repetitive or difficult to resource – helping small teams achieve big results.

How Dragon helps SMEs become AI‑ready

At Dragon, we specialise in helping SMEs move from experimentation to confident, strategic AI adoption, through expert support that directly addresses many of the core issues raised in the Deloitte study.

AI Training programmes for SME: We provide practical, jargon‑free AI training for businesses that helps employees use AI safely and effectively. Our AI readiness programmes help organisations assess their current maturity, identify risks, including shadow AI, and build a roadmap for adoption. We can also support SMEs in creating clear, simple AI policies that employees understand and follow. Find out more by calling us on 0330 363 0055 or emailing info@dragon-is.com.

Accelerating AI Conferences: In addition, along with trusted local partners we regularly hold face-to-face Accelerating AI Conferences, giving businesses a fantastic insight into how to make the most of AI for their operations.

Accelerating AI YouTube channel: Want to know what the hot topics in AI are right now? You can hear our MD Lionel discussing current developments in AI for business on the Accelerating AI YouTube channel.

SME AI adoption plan: We have also pulled together the Dragon’s 3‑Step SME AI Adoption plan, giving advice for SMEs on getting started with AI, one small step at a time.

In summary

Deloitte’s research sends a clear message that AI is likely to already be present in your organisation, with your employees already using it in some form or another. How safely and effectively they are using it is another matter.

By investing in training, building leadership confidence, and establishing clear policies, SMEs can reduce risk, boost productivity, empower employees, and compete more effectively. At Dragon, we’re here to help you take those steps.

If your SME wants to adopt AI safely and confidently, our AI training programmes and AI readiness assessments can help. Contact Dragon on 0330 363 0055 or email info@dragon-is.com.

Frequently Asked Questions: AI Training and Adoption for SMEs

What is generative AI and how can SMEs use it?

Generative AI (GenAI) refers to tools like ChatGPT, Claude, and Microsoft Copilot that can create content such as text, summaries, images, or code. SMEs can use GenAI to speed up everyday tasks including email writing, research, document creation, customer communication, and internal reporting. With the right training, it can also support more advanced uses such as workflow automation and data analysis.

What is Microsoft Copilot and why is it useful for SMEs?

Microsoft Copilot is an AI assistant built directly into Microsoft 365 tools such as Outlook, Word, Excel, Teams and Windows. Because it appears inside software employees already use it can make AI adoption easy for SMEs. Staff don’t need specialist tools or technical knowledge, they can dive in straight away, with Copilot helping them work faster, improve accuracy, and automate repetitive tasks. Speak to the team at Dragon for advice on getting started.

What is shadow AI and why is it risky for small businesses?

Shadow AI happens when employees use AI tools without their employer’s knowledge or approval. This is risky because staff may enter sensitive data into unapproved tools, rely on inaccurate outputs, or use AI in ways that break compliance rules. Deloitte’s research shows 31% of GenAI users are already doing this, making it essential for SMEs to introduce training and clear AI policies.

Do SMEs really need an AI usage policy?

Yes. An AI usage policy explains which tools are approved, what data can be used, how employees should check AI outputs, and who to contact for support. Without a policy, SMEs face higher risks around data protection, accuracy, and compliance. A clear policy also helps employees feel confident using AI safely.

How can AI training improve productivity for SMEs?

AI training teaches employees how to prompt AI effectively, check outputs, and integrate tools like Copilot into daily workflows. Deloitte’s research shows trained users save hours each week, while untrained users often see no benefit at all. Training is the single biggest factor in unlocking real productivity gains.

What are the biggest barriers to AI adoption for SMEs?

The most common barriers include lack of confidence, unclear policies, limited understanding of AI tools, and uncertainty about where to start. Many SMEs say they would feel more confident adopting AI if they had access to workshops, peer networks, and step‑by‑step guidance, exactly the kind Dragon provides.

How can SMEs adopt AI safely and effectively?

SMEs should follow a structured approach:

Build awareness and understanding of AI tools like Copilot.
Introduce governance through a clear AI usage policy.
Provide practical training so employees can use AI confidently and safely. Dragon’s 3‑Step SME AI Adoption Plan is designed specifically to guide businesses through this process.

What support does Dragon offer for SMEs starting their AI journey?

Dragon provides hands‑on AI training, AI readiness assessments, policy development support, and ongoing learning through our Accelerating AI Conferences and YouTube channel. We help SMEs move from experimentation to confident, strategic AI adoption.