Digital Newsletter
Each week our editor Phil Alsop rounds up the most popular articles, videos and expert opinions. We compile this into a Digital Newsletter and send it straight to your inbox every week.
Digital Magazines
We'll let you know each time a new edition of Digitalisation World is released so that you're always kept up-to-date with the latest and greatest news and press releases.
Video Magazines
The Digitalisation World Video magazine contains the latest Zoom interviews with experts in the industry.
IONOS has published survey findings on the approach of UK small and medium-sized businesses (SMBs) toward adopting artificial intelligence (AI). The research highlights that while interest in AI is increasing, several factors continue to influence adoption decisions, including cost pressures, time constraints, and trust considerations.
The survey, conducted in collaboration with YouGov, included 1,001 decision-makers from UK organisations with up to 250 employees. It found that nearly 29% of UK SMBs plan not to allocate any budget to AI initiatives by 2026.
Instead, many businesses are prioritising investments with more immediate operational impact. Online visibility is the most frequently cited focus, with 36% identifying it as their key investment priority for the year.
While 63% of SMBs believe they can remain competitive over the next two years without adopting AI, planned investment in AI is increasing. AI budgets are projected to rise from 27% in 2025 to 31% in 2026, exceeding planned allocations for traditional IT security.
Compared with other European markets, the UK shows a lower proportion of SMBs planning AI investment. In France, Germany, and Spain, around 35–36% of SMBs intend to invest in AI this year.
Cost is the most commonly reported barrier to digitalisation, cited by 46% of respondents. Time constraints are mentioned by 43%, while concerns around data security and third-party access are reported by around half of businesses.
Attitudes toward AI vary: 29% of SMBs report optimism, while 28% describe curiosity about its potential. The most commonly identified benefits are improved efficiency (49%) and task automation (39%).
The research also highlights differences in willingness to pay for AI tools. Around a quarter of UK SMBs would only use free AI tools, while 24% would pay up to £43 per month if it saved around five hours per week. A smaller proportion, 12%, would pay between £44 and £87 monthly, despite this price range being more commonly adopted in some other European markets.
Overall, the findings indicate a cautious but varied approach to AI adoption among UK SMBs, with investment decisions shaped primarily by cost, time, and perceived practical value.
