New research shows AI adoption among UK SMEs remains low, especially outside London and Scotland. SME support organisations like ClimbUK and Enterprise Nation are on a mission to help businesses understand how AI is changing the business landscape.
The report, by Enterprise Nation’s Tech Hub, developed in partnership with Google, Sage, Dell Technologies and Square, was launched at an event at Downing Street for London’s Tech Week.
Findings revealed significant regional disparities, with businesses within Yorkshire & The Humber recording AI adoption rates of just 17% compared to 30% in London.
ClimbUK, which is on a long-term mission to tackle the regional investment gap in the north, has already placed AI at the forefront of its flagship annual UK business growth festival, taking place at the beginning of July.
Commenting on the research and why AI is the big focus of this year’s festival, Founder and CEO of ClimbUK, Gordon Bateman, shared: “It’s great to see the report released, shining a light on this topic.
“There’s a lot of anxiety around AI and misconceptions that it’s only for large organisations with huge budgets and specialist teams.
“Many valuable AI tools are accessible to businesses of all sizes. The real challenge is helping owners understand AI, know where to begin, and build confidence in using it.”
Enterprise Nation’s findings show businesses already using AI are rapidly increasing their usage — widening the gap even further with those yet to adopt. According to the research, cost and lack of skills remain the biggest barriers, with 53% of SMEs citing cost and 46% citing expertise.
Polly Dhaliwal, COO of Enterprise Nation, said: “Small businesses are where the UK’s AI ambitions will either become economic growth or remain a policy aspiration. Our research shows firms are already embracing digital tools, but many have yet to make the leap from experimenting with AI to using it regularly and confidently. There is a real risk of a new divide opening up between businesses already benefiting from AI and those that have not yet been able to unlock its potential.
“For small firms, even a few hours saved each week can be transformative, boosting productivity, growth and resilience. If the UK wants to lead on AI, support must reach the millions of small businesses that power local economies and create jobs. The opportunity is enormous, and that’s why we’re happy to support Climb26’s work in the north to prevent the AI gap from widening further. Unless more firms are given the confidence and support to adopt AI, the benefits will be concentrated among a relatively small group of businesses rather than shared across the wider economy, including Yorkshire & The Humber.”
Gordon Bateman added: “We’ve spent years addressing regional gaps in investment, innovation and productivity. AI could either narrow or widen these divides if businesses and regional economies don’t get access to practical AI support and real-world examples.”
This year’s Climb26 festival will showcase an array of practical ways businesses can use AI to their advantage and to unlock new growth opportunities.
Gordon Bateman said, “Most businesses now know AI matters. But many SMEs need support in using it in ways that create value, and this is exactly what we aim to demonstrate at Climb26.”
“Our events are known for connecting northern businesses with investors, but we also help businesses keep up with important topics like AI and the changing business landscape, and offer support in all areas of business growth.”
The two-day festival will feature various talks, demos, and workshops on AI this year, with partners like Google, Lovable, and Animoca running Vibe coding sessions to help attendees build tailored AI solutions for their specific business needs.
Growth and marketing agency, Becks & Clates, is also exhibiting at Climb26, presenting DEALGYM, an immersive virtual reality experience which enables people to step into a Dragon’s Den-style virtual environment and pitch in front of lifelike AI investors, allowing people to receive real-time AI-generated feedback to perfect their pitch before speaking with a real-life investor.
Entrepreneur Owen Carter, Founder of Becks & Clates, commented: “Yorkshire and the wider North are home to exceptional founders and businesses. Events like Climb26 are important because they help make sure ambitious companies outside London have access to the same technologies, opportunities and support as businesses in larger ecosystems.
“If founders leave our stand more prepared, more confident and better equipped to pitch for investment, that is a real success. That is what practical AI adoption should be about — helping people perform better, access opportunity and grow.”
For the first time, Climb26 is offering an AI-powered event assistant app to help attendees plan and personalise their experience, to find meaningful connections and opportunities.
Gordon Bateman concluded: “We’ve always helped people connect and grow. Now, we use AI to do this more effectively and improve our community’s experience, while making sure it doesn’t replace the human side of the business. We hope to inspire others to see what’s possible.”
For more information about Climb26, which takes place on 1-2 July 2026 at Leeds Dock, visit the ClimbUK website.
