Intelligent SME.tech Issue 71 | Page 25

// FEATURE //
very conversation about the

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UK’ s future as a technology hub seems to orbit the same two poles of the FTSE100 giants which have the budgets to adopt whatever tools they like and the scrappy start-ups whose funding rounds make headlines for record-level capital investment. Sandwiched between them is a mid-market segment that is often mis-classified from a software perspective and untapped in its potential to fulfil Britain’ s ambition to adopt AI domestically, along with its growth ambitions.
In my 25 years in software, I’ ve watched waves of technology sweep through corporate Britain. From client-server to cloud, cloud to SaaS, even standard SaaS to AI-integrated, and now the scramble towards realising value from AI. Each wave saw market-leading enterprises with extensive procurement budgets moving first while organisations with less headcount and smaller IT teams

// played catch up. This time, however, many mid-market businesses face the unique challenge of being treated like large enterprises despite having hugely different technology needs and resources.

What is the mid-market
The government’ s last business report defines a‘ medium-sized’ business as one with 50 to 249 employees, which is useful for tracking other economic indicators like employment rates. But when software vendors talk about the mid-market of businesses it generally means organisations that carry enterprisegrade obligations without the technology procurement budget to match.
This definition difference is a blind spot in the UK’ s AI adoption agenda. Many midmarket businesses are classified as‘ large’ because they employ more than 250 people, pushing them outside the official SME category that more closely matches their constraints. Despite contributing to a £ 2.7 trillion in turnover in 2025, many mid-market
THIS TIME, HOWEVER, MANY MID-MARKET BUSINESSES FACE THE UNIQUE CHALLENGE OF BEING TREATED LIKE LARGE ENTERPRISES DESPITE HAVING HUGELY DIFFERENT TECHNOLOGY NEEDS AND RESOURCES.
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