How many UK businesses use AI, and what's holding the rest back?

Three in ten UK businesses now use AI. The ONS put the figure at 30% of all businesses in September 2026, rising to 51% of businesses with 250 or more employees and falling to 29% of those with fewer than 10. Cost isn't the main thing holding the rest back. Government research published in 2026 found the two biggest barriers are not seeing a use for AI and not having the skills, and you can fix both.

So if you run a small business and haven't started, you're in the majority, not behind a crowd of competitors. But the businesses that have started are seeing results, and the reasons for staying out are weaker than they look.

How many UK businesses use AI in 2026?

The latest figures come from the ONS Business insights and impact on the UK economy bulletin, published on 8 October 2026. It's based on wave 165 of the Business Insights and Conditions Survey (BICS), which ran from 21 September to 4 October 2026. In that wave, 30% of UK businesses reported using at least one type of AI technology, up from 9% when the question was introduced in September 2023.

Size makes the biggest difference. Among businesses with 250 or more employees, 51% used AI in September 2026, up 32 percentage points from 19% in September 2023. For businesses with 10 or more employees the figure was 38%. For businesses with fewer than 10 employees it was 29%.

The uses are everyday ones. For businesses with 10 or more employees, the two AI technologies used most in September 2026 were text generation using large language models, at 21%, and visual content creation, at 19%. Writing and images are work every business already does, so the technology isn't the gap. Knowing where it fits is, and that's what the government's own research points to.

Why does another government study show a lower figure?

The Department for Science, Innovation and Technology commissioned a separate study, AI Adoption Research, published on GOV.UK in January 2026. IFF Research and Technopolis Group interviewed 3,500 UK private sector businesses with at least 5 employees between February and May 2025. It found that 16% were using at least one AI technology, and that 80% were neither using AI nor planning to.

The two surveys cover different businesses at different times and ask different questions, so don't set one number against the other. The ONS figure is the more recent. The DSIT study is more useful for a different reason: it asked businesses what was stopping them.

What's stopping UK businesses from using AI?

Two answers dominate. When every business in the DSIT survey was asked what stops them, or stopped them, from adopting AI, 71% said they hadn't identified a use for it and 60% said they had limited AI skills, expertise or knowledge. Cost came much further down the list, at 23%.

The split between groups is sharper still. Among businesses with no plans to adopt AI, a lack of identified need was the biggest barrier, at 81%. Among businesses planning to adopt, limited AI skills topped the list at 68%.

Those two barriers are really one problem. If nobody in your business has spent proper time with ChatGPT, Copilot or Claude on your own work, you can't see where it fits, so it looks like you don't need it. And if you can't see a use, there's no reason to build the skills. It's a loop, and the way out is knowledge, not new technology or a big budget.

Does a small business really need AI?

Yes, if your week includes writing, reading or sorting information. Look at where your team's hours go rather than at the tools. Answering a tender, turning a site visit into a written report, replying to the same customer questions again and again, pulling the key dates out of a lease or a supplier agreement: each of these is a job where an AI tool gives you a first draft or a summary to work from, while you keep the judgement and the final say.

The test is simple. List the five tasks that take your team the most time each week and mark the ones that start with a blank page or a long document. Those are your first uses for AI, and once you've named them, the biggest barrier in the government's research no longer applies to you.

What do businesses that use AI get from it?

The DSIT study asked the 700 businesses already using AI what difference it had made, and 75% said their workforce's productivity had improved. Among those businesses, 85% were using natural language processing and text generation, the same writing tools that are open to any small business with a laptop.

That's the point to take away. The businesses getting results aren't using exotic systems. They're using the AI assistants you've already heard of, on everyday tasks, and they've learned how to use them properly.

Where does staff training fit?

Right at the centre. When DSIT's researchers followed up with businesses in interviews, they reported that "Staff training and awareness were felt to be critical, in particular sector-specific training and upskilling." Training deals with both top barriers at once: it shows people where AI fits their own work, and it gives them the skills to use it safely.

Good training starts with your tasks, not a demo of features. Here's what a first session should leave your team with:

• Three or four real tasks from your business where AI saves time this week.
• Prompts for those tasks that work, saved where everyone can find them.
• Clear rules on which tools are approved and what data never goes in.
• The habit of checking every output before it's sent or relied on.

That's exactly how we run our AI training for staff. It's private and hands-on for up to 12 people, at your premises anywhere in the UK, at a venue or online, and priced per group. We cover Microsoft Copilot, ChatGPT, Claude and the other AI tools your business uses, built on the work your team does every day. If your team is new to AI, our AI for Business training covers the main tools, prompting, responsible use and an action plan for your first use cases. Attendees rate our workshops 5/5, and DLR Media has signed the Responsible AI Use Campaign's 10 principles.

Not sure which tool to start with? Our guide to whether your team should learn ChatGPT, Copilot or Claude first walks through the choice. If you're in Scotland, our look at how many Scottish businesses use AI has the Scottish figures.

Frequently asked questions

What percentage of UK businesses use AI?

30% of all UK businesses reported using at least one AI technology in September 2026, according to the ONS. For businesses with 10 or more employees the figure was 38%, and for businesses with 250 or more employees it was 51%.

Do small businesses in the UK use AI?

Yes, but fewer than larger firms. 29% of UK businesses with fewer than 10 employees reported using AI in September 2026, compared with 51% of businesses with 250 or more employees.

What's the biggest barrier to AI adoption in the UK?

Not seeing a use for it. In DSIT's 2025 survey, 71% of businesses said they hadn't identified a use for AI, and 60% cited limited AI skills, expertise or knowledge. Cost was cited by 23%.

Do staff need training before they use AI at work?

Yes. Training shows people where AI fits their own work, which tools are approved and what data stays out, and it builds the habit of checking every output. Without it, people can't see where AI helps, and that's the top barrier DSIT found.

Find your first uses for AI

Tell us what your team spends its week on and which tools you have, and we'll build a session on it. Call us on +44 1382 699595 or tell us about your team.