Previous BCC research found that 35 % of firms were using AI in 2025, up from 25 % in 2024 and 23 % in 2023. The fresh research also shows that more than nine in 10( 95 %) SMEs using AI report it has had no impact on workforce size over the past year; most firms( 86 %) say job roles have remained unchanged.

These findings are part of the new BCC report Future of Work: AI in the Workplace Report based on groundbreaking analysis by the BCC Insights Unit and the University of Essex ESRC Centre for Micro-Social Change. Around 94 % of the firms surveyed were SMEs. The report shows:

• AI adoption has accelerated but is uneven across sectors: Larger SMEs and B2B professional services firms lead AI adoption, while smaller firms and consumer-facing and manufacturing sectors are slower to adopt.

• Most firms using AI say it has had no impact on headcount: Most SMEs say AI is currently being used to support employees rather than replace them.

• Generic AI vs Bespoke AI users: A smaller group of SMEs( one in 10) are adopting deeper bespoke AI and are more likely to expect headcount reductions than generic users. Likewise, 14 % of SMEs investing in AI training anticipate headcount reductions over the next 12 months, suggesting that advanced AI adoption may drive broader restructuring.

• Productivity gains tied to adoption maturity: SMEs already using AI report strong net productivity improvement expectations(+ 71pp), while firms planning to adopt or unsure show far lower optimism.

The report concludes that the challenge ahead for UK businesses will be to harness the enormous benefits in productivity AI offers, while futureproofing education and careers.

It provides several recommendations for the government and businesses to ensure AI is used responsibly and effectively across the labour market, including calls to:

• Establish an AI Labour Market Observatory to monitor the ongoing impact of AI on jobs

• Establish a network of AI champions to help SMEs adopt AI

• Allocate Growth and Skills Levy funds to subsidise AI literacy training

• Introduce tax credits or grants to encourage business investment in AI technologies and workforce training

• Lead national efforts to integrate AI literacy across education and lifelong learning, partnering with businesses and local authorities.

The BCC is already leading the way on supporting businesses to adopt AI. The BCC AI Academy, launched in October 2025, is helping firms across the Chamber network embrace the new technology.

Patrick Milnes, Head of Policy: People and Work at the British Chambers of Commerce said:“ Businesses are reaping the productivity benefits. For many SMEs, AI is helping them work smarter, improve decision-making and freeing up staff to focus on high value tasks.

“ To futureproof both firms and their workforces, government must work closely with business to get AI policy right. That’ s about working together to build AI skills, support adoption and closely track the impact technology is having on workforces.” �

30 Intelligent SME. tech