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The AI Revolution: Accelerating SME Adoption

Artificial Intelligence (AI) is no longer a futuristic concept. For small and medium-sized enterprises (SMEs), which represent 90% of businesses globally and contribute around 50% of worldwide GDP, it is now an important part of daily operations, driving growth, efficiency, and innovation. Sage is committed to helping more SMEs benefit from the transformative impact of AI.

Yet the recent Sage study ‘The AI Revolution: Accelerating SME Adoption’ highlights the fact that, while SMEs recognise the potential of AI to improve productivity and expand into new markets, they have yet to embrace it as a large-scale transformational force. The study identifies four key findings:

  • There has been a rapid acceleration in adoption: there has been an 85% growth rate from January 2023 in the proportion of European SMEs that have adopted AI into their business operations.
  • AI is already improving productivity amongst SMEs: 90% of European AI adopters report productivity improvements, and 75% say AI has changed customer interactions.
  • There are significant regional variations: Almost 2 in 3 of SMEs have adopted AI tools, with the UK (60%) and US (64%) leading the way, while France lags at 35%.
  • AI fosters competitiveness and a level playing field: 59% of SMEs in France believe AI levels the playing field with larger corporations, democratising access to advanced tools and driving competitiveness.

"SMEs see the potential of AI, but they need the right support to make it work for them. Trust is key—clear information, practical guidance, and solutions that fit their needs. To help SMEs get the most from AI, we must remove the barriers and give them the confidence to use it." commented Aaron Harris, Chief Technology Officer at Sage.

At Sage, we believe that AI can only drive real transformation if businesses fully implement it and employees trust it in their daily work. This is why we developed Sage Copilot, an AI-powered assistant designed to help SMEs automate tasks, gain insights, and make smarter decisions with confidence. 

The government plays a crucial role in this transition. Clear and accessible international AI standards, best practices for responsible use, and stronger collaboration between public and private sectors are essential. The AI Action Summit shouldn’t just celebrate progress—it must ensure that every business, no matter its size, can adopt AI in an informed and secure way.