UK small businesses are facing an emerging “AI productivity gap”, with confidence in using artificial intelligence running significantly ahead of the way businesses are utilising AI tools, according to new research from the Small Business Institute and Accio, Alibaba.com’s agentic AI platform for businesses.
Based on a study of 1,000 UK small business owners, the research found seven in ten (70%) are somewhat or very confident using generative AI, yet fewer than half (48%) are using it regularly, revealing a gap between confidence and measurable productivity impact.
Among small businesses using AI, nearly three quarters (74%) use it for content creation and marketing, while only a third apply it to data analysis or reporting, and just 5% use it for supply chain management.
The findings also show that while generative AI has become part of everyday working life for many entrepreneurs, businesses are yet to extend that use into AI that can tackle more complex, time-consuming and high-value tasks that come with running a business. Six in 10 (60%) small business owners see improved work-life balance as a potential advantage of agentic AI specifically, and half (50%) believe it could free up more time for marketing their business and winning new customers.
Michelle Ovens CBE, CEO & founder of Small Business Britain, said: “We know small business owners wear many different hats when running their businesses, so it’s hugely encouraging to see growing confidence in AI as a critical tool. However, the research also makes clear AI’s – and particularly agentic AI’s – untapped potential. There is a real opportunity for technology to completely revolutionise how small business owners manage their business, potentially freeing up more time to focus on the areas that can really take their business to the next level.”
Michelle Lau, managing director of Alibaba.com, said: “AI has had a transformative effect on many small businesses across the UK, but when we look a little closer, much of the adoption today has been at a surface level. We’re entering the era of agentic AI with tools like Accio, which can research markets, evaluate suppliers and manage day-to-day operations on a business’ s behalf, enabling small businesses to progress more business-critical workstreams at once, access more insightful information on suppliers, trends and market data and save more time day-to-day for greater work-life balance or other areas of their business.”
Accio is Alibaba.com’s agentic AI platform for businesses, supporting small businesses and entrepreneurs through every stage of running and growing their operations. Businesses can use Accio to research markets, identify product opportunities, develop products, evaluate suppliers and manage daily operations.
Awareness of agentic AI is still developing, with 44% of small businesses having heard of it and just 5% using it regularly. But there is a clear appetite to learn, with 68% of UK entrepreneurs wanting to find out more about what agentic AI can do, from researching options and comparing information to identifying potential solutions and helping move a task towards completion.
Beauty and skincare brand Rosy Empire has been using agentic AI tools, including Alibaba.com’s Accio, to help run and grow business.
Rosemary Omeje, founder of Rosy Empire, said: “I started my business whilst I was on maternity leave, and since then it has grown into an amazing venture. However, being a mum to two young children while running a business means my time is limited, so bringing an agentic AI team into my everyday work has been a real game changer.
“By using Accio, I’ve been able to quickly research and evaluate suppliers, compare products and prices, and speed up tasks that would previously have taken me days or even weeks. Before Accio, I either had to do this work myself, often late at night when my children were asleep, or find the budget to outsource it, which wasn’t always possible. Accio has allowed me to take that work off my plate, while still allowing me to review the information and make the final decisions myself.
“What has surprised me most is how quickly I can now take a business idea from something I’ve been thinking about to something I can actually explore and test.” For me, AI is about giving me back time. As a small business owner and a mum, that has been invaluable, and it’s helping me see new possibilities for how I can grow Rosy Empire.”
