British businesses could make billions if equipped with the latest tech

Investing in SME tech could also help UK close productivity gap, report claims

News By Craig Hale published 23 October 2024

Britain’s SMEs could unlock an extra £79 billion in the next year alone if they went all-in on the latest tech such as AI tools and automation, new research has claimed.

A study from Three Business found British workers make on average £19.20 per hour less than German workers, £17.39 less than their American counterparts, and £14.77 less than the French, highlighting a significant productivity gap costing businesses and the uk economy billions.

Moreover, just by investing in technology such as AI, Three Business believes the gap between the UK and those other countries could be narrowed by between 25-34%.

Britain’s dated tech is costing billions

The report is one of a growing number to highlight the ongoing challenges with adopting AI – although 43% of business leaders acknowledged that AI could enhance productivity and efficiency, nearly as many (42%) worry about onboarding challenges that could hinder their growth.

Over half (55%) of the SMEs surveyed also noted the cost associated with adopting new technologies is a barrier, with two in five (42%) unable to prioritize these investments in a tight economy.

The study also highlighted geographical differences that could threaten to leave some counties behind. London-based businesses were among the most AI-enthusiastic, with 45% citing it as a priority, compared with just 22% in the North and 18% in the South.

The report also covered concerns about a stable and reliable internet connection – almost all (97%) of the SMEs agreed on its importance, however the UK still lags behind other European countries in terms of 5G availability and network speeds. According to Speedtest figures cited in the report, the UK ranks 26th out of 31 countries for network quality.

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