Use AI to save time and cut costs in a small business you already run

The idea

Use AI to save time and cut costs in a small business you already run.

Who the evidence applies to: Owners of existing small businesses with routine written or administrative work that AI tools can speed up

The ONS published updated figures on AI use in UK businesses in July 2026, showing adoption among businesses with 10 or more employees has risen to just under three times its September 2023 level.

How we checked

This is an evidence check: we looked for large studies, official statistics and published datasets, opened every source, and had a second researcher check each figure against them. 6 sources, listed below.

Costs

Start-up cost

Varies

Effort

medium

What the evidence shows

DSIT's AI Adoption Research (3,500 businesses, published January 2026) found 75% of AI-adopting businesses reported improved workforce productivity and 34% reported reduced costs, but 77% had seen no change in revenue yet. The ONS reported in July 2026 that 28% of businesses with 0 to 9 employees used at least one AI technology, and that improving business operations was the most common use among larger businesses. An OECD survey of over 5,000 SMEs in seven countries including the UK found generative AI in use in 31% of them, with firms reporting better performance and help with skill gaps. Time-saving evidence is uneven: a UK government Copilot trial reported 26 minutes saved a day (self-reported), while a Department for Business and Trade evaluation found time savings but no evidence of improved productivity.

What to expect: Many adopting businesses report productivity gains and some report lower costs, but most have not yet seen more revenue, so expect savings on specific tasks rather than a rise in income. Gains depend on finding real uses; lack of a clear need, skills and cost are the main barriers businesses report.

First steps

1. List the repetitive tasks in your business and pick one, such as drafting written material, where trials found the clearest time savings
2. Try an AI tool on that task for a few weeks and record the time it takes before and after
3. Check AI output for errors before using it, as the DBT evaluation found users had to correct inaccurate information
4. Consider the government's free AI Skills Boost training, which aims to reach at least 2 million SME employees, before paying for courses

Limitations

Studies report averages: your own result depends on your field, skills and where you live. Figures come from the sources below and may be updated as new evidence appears.

Sources

1. DSIT AI Adoption Research (3,500 businesses, published 28 January 2026, updated February 2026): 16% of businesses use AI; of adopters 75% report improved productivity, 34% reduced costs, 77% no revenue change yet; main barriers include no identified need and lack of skills gov.uk
2. ONS, AI in UK businesses 2023 to 2026 (July 2026): 28% of businesses with 0 to 9 employees reported using at least one AI technology in June 2026; improving business operations is the most common use, reported by over 60% of larger businesses; barriers include identifying use cases, cost and expertise ons.gov.uk
3. OECD, Generative AI and the SME Workforce: generative AI in use in 31% of over 5,000 surveyed SMEs; SMEs report improved performance and help with skill gaps oecd.org
4. The Register on the UK government Copilot trial (20,000 civil servants, late 2024): self-reported saving of 26 minutes a day theregister.com
5. Civil Service World on the DBT Copilot evaluation: small time savings, largest on written tasks, some tasks slower, no evidence of improved productivity civilserviceworld.com
6. GOV.UK (28 January 2026): free AI Skills Boost courses available to every UK adult, with the programme aiming to reach at least 2 million SME employees gov.uk