Half of SMEs using AI with limited impact on headcount (so far)

More than half of UK firms are now using artificial intelligence, according to new research from the British Chambers of Commerce, marking a sharp increase in adoption but with little immediate effect on workforce size. The survey, carried out in partnership with Atos, suggests that 54 percent of businesses are actively using AI. This represents a notable rise from previous BCC findings, which showed adoption at 35 percent in 2025, 25 percent in 2024 and 23 percent in 2023.

Despite this growth, the impact on jobs appears limited so far. Among small and medium sized enterprises using AI, 95 percent reported no change in headcount over the past year, while 86 percent said job roles had remained the same.

The findings are drawn from the report Future of work: AI in the workplace, based on analysis by the BCC Insights Unit and the University of Essex ESRC Centre for Micro-Social Change. Around 94 percent of respondents were SMEs.

The research indicates that adoption is uneven across sectors. Larger SMEs and business to business professional services firms are leading uptake, while smaller firms, consumer facing businesses and manufacturing organisations are slower to adopt the technology.

Where AI is being used, most firms describe it as a support tool rather than a replacement for workers. However, a smaller group of businesses is beginning to adopt more advanced, bespoke systems. Around one in ten SMEs fall into this category, and they are more likely to anticipate reductions in headcount. Similarly, 14 percent of firms investing in AI training expect workforce reductions over the next 12 months.

The report also highlights a link between adoption and expectations around productivity. SMEs already using AI report strong expectations of productivity improvements, while those yet to adopt or undecided are significantly less optimistic.

Patrick Milnes, Head of Policy for People and Work at the BCC, said AI had moved rapidly into the mainstream and was helping firms improve decision making and focus staff on higher value tasks. He suggested that closer collaboration between government and business would be needed to support skills development and monitor the technology’s impact on work.

Michael Herron, Head of Atos UK and Ireland, said AI would reshape entry level roles and career paths, with some jobs disappearing and others emerging. He emphasised the need for investment in skills and new approaches to workforce development.

AI Minister Kanishka Narayan said increasing adoption reflected growing confidence among businesses, and pointed to government efforts to monitor labour market impacts and expand AI skills across the population.