The research suggests the majority (82%) of British businesses have an appetite to embrace more AI technology, with over half (65%) agreeing that stricter regulation of AI will impede competitiveness.

New research from Gong, the revenue intelligence platform, has revealed how 500 SME business leaders feel about the state of AI in business and what they hope to see from government regulation.

Censuswide surveyed 500 SME decision makers on behalf of Gong to understand their AI business practices.

This comes as the UK is closing its AI white paper consultation to the public on 21 June, 2023.

The evolving business landscape coupled with economy uncertainty, has created a mind field of issues  leaders will need to address, and technology will be crucial to finding the solutions.

As of today, driving new sales continues to be a problem for a third of businesses (33%), according to the research – other challenges include managing or cutting costs (40%) and recruiting new talent (37%).

AI technology is already playing a role for the majority of companies in the UK (89%) with over a quarter (28%) using it to boost sales, a third using it to improve marketing (33%), and to improve customer support (28%).

Business leaders are rushing to see how best they can benefit from AI, with 30% of those surveyed saying that adopting AI is crucial for their businesses to thrive, and 40% believing it will be imperative to the future of their business.

Lesley Ronaldson, EMEA Senior Director at Gong said: “AI technology doesn’t just impact a business’s profitability, but also makes employees more efficient and effective at what they do. 77% of a seller’s time is spent on non-selling activity, so it’s no surprise that the biggest motivation for adopting AI (46%) was to improve productivity. With employee burn-out being high on the agenda for many leaders, another top motivation was to take pressure off sellers.”

AI Regulation
AI regulation is a top concern across the globe, as there are polarising opinions on how to handle the rapidly developing technology. Regulators are still attempting to fill knowledge gaps in the field, and many have become more concerned over potential risks with AI rather than potential rewards.

The EU has just voted on a landmark AI regulatory act, which is set to be deliberated with member nations before fully approved. The act would limit certain uses of AI among law enforcement, and marks certain applications of the technology as ‘high risk’ – including its use in social media algorithms and in recruitment practices.

In the UK, politicians continue to deliberate putting the breaks on innovation for regulation to keep up – Prime Minister Rishi Sunak is set to host an international AI summit in the autumn, all the while promoting the UK as a AI heavyweight.

Despite the government releasing an AI whitepaper, over half of SMEs (52%) are still seeking clarity on rules and regulation, as well as regulatory protection (47%) in their AI ventures, according to Gong’s survey.

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The Scottish Government Minister for Small Business, Trade, and Innovation, Richard Lochhead, previously voiced his concerns about the UK government’s “hands off” approach to AI regulation, noting the current non-statutory regulatory approach currently in place.

Despite these regulatory concerns, 65% of SMEs surveyed believe that strictly regulating how and when businesses use AI will impede the competitiveness of British businesses.

Ronaldson continues: “Businesses face a severe challenge with boosting sales in a hybrid workforce and declining economy that no longer supports traditional sales tactics. The potential that AI has for the future of sales across industries is tremendous.

“Retaining a competitive edge is a top motivation for businesses wanting to adopt AI into their current models. It therefore should be a consideration for the UK government as they endeavor to assert the UK as a science and technology superpower by 2030.”