With AI innovation and digital infrastructure investment at the forefront of the UK’s economic agenda, new findings from Shopify’s Global Business Pulse Survey reveal that UK SMBs are leaning into technology to fuel their next phase of growth.

From automation to personalised marketing, AI is fast becoming a key tool for scaling – more than 2 in 5 (43%) named AI as the most helpful technology for expansion. Yet despite this momentum, many businesses continue to face real-world challenges in implementation, including budget constraints and uncertainty around ROI.

According to the research, which surveyed over 500 UK business decision-makers, 96% believe technology will be helpful in reaching new markets over the next 12 months, with AI (43%), digital marketing tools (38%), and ecommerce platforms (36%) topping the list.

From automation and analytics to better payment experiences, technology is seen not as a luxury but as essential for scaling.

However, enthusiasm is being tempered by cost concerns: 44% of business leaders cite high costs and limited budgets as their top challenge in keeping up with technology, while a further 30% are uncertain about the ROI of digital tools. The result is a widening gap between ambition and execution.

The data also reflects a broader shift in how UK businesses approach innovation. While some are proceeding cautiously, others are taking bold steps to compete and thrive: more than a third (35%) of UK SMBs are taking more risks amid economic uncertainty, seeking an advantage over more conservative competitors.

Those investing in their own ecommerce websites report higher levels of personalisation, analytics, and customer loyalty – especially when compared to marketplaces or social selling.

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Over half (57%) strong agree that their own website allows for personalised marketing strategies not possible elsewhere, while 63% strongly agree that it helps build an emotional connection with customers.

The survey suggests that UK SMBs are eager to modernise, but doing so strategically, selectively, and with long-term sustainability in mind.

“Our findings come at a pivotal time, as UK businesses balance the need for innovation with mounting cost pressures and an increasingly competitive digital landscape,” Matthais Kleven, head of northern Europe partnerships at Shopify, comments.

“SMBs are ready to innovate – but need clear pathways, affordable tools, and measurable outcomes to fully commit. To unlock digital transformation at scale, we need to remove barriers and give business owners the tools to adopt tech that delivers measurable value.”