UK Small Businesses Lack Oversight of Their AI Use

UK small and medium-sized businesses are adopting artificial intelligence faster than their oversight practices are developing, according to research by Pax8 reported by TechRadar. The findings point to gaps in visibility over which tools employees use and how much they cost.

In the past six months, 24% of UK small and medium-sized businesses discovered unauthorized AI tools in use. Another 39% said they had faced unexpectedly high AI bills. Only 23% have a formal, documented process for reviewing AI built internally, compared with 32% in Germany and 36% in the United States.

Some 54% of UK businesses surveyed are developing their own AI, versus 81% in the United States. Cost controls also appear limited: 12% have dedicated AI budgets, while 19% could not separate AI spending from other technology costs. Just 16% said they were confident in their ability to assess AI’s return on investment, compared with 45% in Sweden.

Security concerns were the most cited barrier to AI adoption. Pax8 presents the situation as an opportunity for software vendors and IT service providers, arguing that providers can help customers with visibility, security, governance and cost-management controls. The report’s EMEA CEO, Harald Nuij, said trusted businesses can help small and medium-sized businesses connect agents, workflows, data and tools.