'Clear answers' | Burnham Government's AI reset must build trust among small firms, FSB says

The AI Minister’s new Cabinet role gives the Government an opportunity to help small firms adopt the technology with confidence, according to the Federation of Small Businesses (FSB).

FSB has published The Confidence Code: The Challenges and Opportunities of AI for Small Firms, days after Prime Minister Andy Burnham gave AI Minister Kanishka Narayan a seat at the Cabinet table.

The report found that 59% of small business AI users have experienced productivity gains, while 24% have increased their revenue. Businesses using the technology reported an average revenue increase of 3%.

AI adoption among small firms has almost tripled since 2023, but considerable concerns remain. Some 92% of small businesses still have reservations about issues including data security, copyright and liability.