A recent survey by the Federation of Small Businesses indicates that 64 per cent of UK small and medium enterprises increased their digital technology spending in the first half of 2026, with artificial intelligence tools accounting for the largest share of new investment.
The figures, compiled from over 2,000 business owners across England, Scotland, and Wales, show a marked shift from the cautious spending patterns seen throughout 2025. Cloud-based accounting platforms, customer relationship management systems, and generative AI assistants lead the adoption curve.
“What we are seeing is no longer early adopters experimenting with new technology. This is mainstream,” said Dr Rebecca Thornton, a digital economy researcher at the University of Manchester. “Small firms that held off during the uncertainty of 2024 and 2025 are now moving quickly, partly because the tools have matured and partly because their competitors are already using them.”
The survey highlighted bookkeeping and customer service as the two functions where AI is having the greatest impact. Automated invoice processing, chatbots handling routine inquiries, and AI-generated marketing content were cited by more than half of respondents.
However, the research also pointed to a widening skills gap. Nearly four in ten business owners said finding staff with the right digital competencies remains a significant barrier. Several industry bodies, including the British Chambers of Commerce, have called for expanded government-backed digital skills training programmes.
Cost remains a concern for microbusinesses. While enterprise-grade AI platforms have become more affordable, monthly subscription fees for a full suite of tools can still run to several hundred pounds, a meaningful outlay for firms with fewer than five employees.
The trend is expected to continue through the remainder of 2026, with analysts at Barclays predicting that UK small business technology spending will grow by 12 per cent year-on-year, outpacing the broader economy.