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In the capital , 64 % of SMEs are turning to technology investments to increase productivity , and 43 % are doing so to future-proof their company . This is compared to 45 % UK-wide .

The data revealed that London SMEs are directing an average of 54 % of their annual revenue to technology investments , such as data analytics and Artificial Intelligence tools , as they try to counter rising costs and climbing interest rates by increasing productivity .

Colin O ’ Flaherty , Head of SME at Barclaycard Payments , said it is ‘ promising ’ to see SMEs investing in technology to ‘ future-proof ’ their operations .

The retail sector was especially keen to embrace new technologies , with two-thirds of SMEs in the capital doing so , including by establishing specific tech teams .

“ Retail SMEs in particular have displayed a remarkable agility in adapting to evolving consumer behaviours by adopting emerging technologies – setting the stage for a brighter year ahead ,” O ’ Flaherty said .

Sjuul van der Leeuw , CEO of Deployteq , said : “ Ramping up tech investment should be a top priority for SMEs , particularly with the rise of AI and automation dominating the global business agenda . Despite all the hype , far too many businesses still operate using outdated , manual systems for key functions such as sales and marketing , putting them at risk of falling behind when it comes to meeting customer expectations in the future .”

Steven Mooney , CEO of FundMyPitch , said : “ While it ’ s encouraging to hear that SMEs are putting tech investment at the top of the agenda , the reality is that many ambitious companies are still struggling to get access to the investment they need to take their business to the next level . From securing a credible valuation to getting a chance to pitch their proposition to investors , far too many entrepreneurs are missing the big chances that could turbocharge their organisation . This culture has to change if we want to unleash the true potential of our SMEs and create a business culture that backs the next generation , rather than ignoring it .”

Josh Boer , Director at tech consultancy , VeUP , said : “ It ’ s encouraging to see SMEs put tech investment at the very heart of their business strategy , particularly against the backdrop of stubborn inflation and soaring interest rates . The UK is home to some of the most exciting and incredible businesses on the planet , yet many are still way behind when it comes to getting access to funding and scaling up through cloud technologies . By prioritising investment in tech , the next generation of SMEs can grow rapidly , creating jobs and boosting the value of UK plc .”

Much of the increase in tech spending is driven by the fact that consumers are predominantly moving to shop online .

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IT ’ S ENCOURAGING TO SEE SMES PUT TECH INVESTMENT AT THE VERY HEART

OF THEIR BUSINESS STRATEGY .

Barclays ’ research revealed that 70 % of consumers use the Internet to guide their shopping decisions , propelling a major surge in online grocery website traffic ( 54 %) and in non-grocery site visits ( 42 %). �

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Intelligent SME . tech