Smaller firms struggling to get to grips with AI

Despite a growing acceptance by businesses that it will help boost productivity, the majority of smaller firms are still not using artificial intelligence (AI).

Research carried out by the British Chambers of Commerce (BCC) Insights Unit and Pertemps Network Group has shown that 25% of businesses are currently using AI but 43% have no plans to use the technology.

Customer-facing businesses (B2C) are even less likely to adopt AI, with 50% stating that they have no plans to use it.

Manufacturing firms are the least likely to be using AI technology (19%) — with nearly half of manufacturers (49%) also saying they have no plans to adopt the technology, while just 24% intend to use it in the future.

Pertemps Network Group Chair, Carmen Watson, said: “AI has the potential to significantly benefit many industries but, as our research with the BCC shows, there is still a nervousness about its applications. One of the areas it can help is addressing skills shortages. Our research shows that many businesses do not feel there are measures in place to address the current shortages and ensure they have a talent pipeline for the future.”

The findings are set out in the BCC/Pertemps Employment Trends Report 2024 which examines major trends impacting the labour market, including changing skills needs and increasing occupational health requirements.

The report also highlights that just 11% of responding businesses feel their current training arrangements are allowing them to meet their future skills needs while 39% say they have seen an increase in the use of occupational health by employees.

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