• 24% of SME owners report never having used AI; of those, 53% say they have no plans to adopt it[1]
• 29% believe AI presents a potential threat to their business, with nearly half concerned about the impact it could have on their own job security as SME owners[2]
• 50% of small business leaders do not trust AI to make financial decisions within their organisation,[3] showing that human judgement is still essential to business decision making
• While 76% are excited and eager to learn more about AI’s capabilities[4], SME owners also think 17% of employees lack a clear understanding of how it works[5]
• Yasmin Waters, 28, a small business owner and travel consultant, uses AI every day to streamline her business but believes it should not replace human creativity or originality
• Uswitch.com experts offer their tips on how to use AI for your business responsibly 

AI might be the hottest topic in tech right now, but not everyone’s buying into the hype.

While big businesses rush to integrate AI into everything from customer service to strategy, many small business owners are treading more carefully. For some, AI feels like an opportunity, but for others, it’s a risk they’re not willing to take, at least not just yet.

New research from Uswitch business credit card experts lifts the lid on how SME owners across the UK really feel about AI. From job security fears to trust issues and competitive pressure, the findings reveal a complex mix of caution and curiosity driving decisions around AI adoption.

Some entrepreneurs fear AI could replace them

Nearly a quarter of entrepreneurs (23%) are pushing back against the use of artificial intelligence in their small businesses.[1] Among the 29% who see AI as a threat,[2] over half (52%) say they fear it could replace their jobs.[6]

When asked what’s influencing their stance, 27% of SME owners said they feel some pressure to adopt AI because competitors are doing so, followed closely by pressure from the media (26%), advisers (13%), employees (11%) and even friends and family.[7]

Trust and understanding are also major factors. Half of SME owners (50%) said they don’t trust AI to make financial decisions,[3] and 17% think that their employees don’t fully understand how AI works.[5]

Why some entrepreneurs are hesitant to use AI 

AI isn’t just a technological shift – it’s a shift in mindset, and small business owners are divided on where they stand. Of the 29% of entrepreneurs who think AI could pose a threat to their business,[2] the data shows:

• Over half (52%) believe AI could replace their jobs 
• 37% say it introduces data and compliance risks
• 30% say their customers might not like AI-driven services
• 14% admit to not understanding it enough to use it safely[8]

When it comes to critical business functions, trust in AI is still low among SME owners. Nearly half say they distrust AI in areas like finance (50%), hiring (49%) and legal decisions (47%),[3] in a multiple-choice survey question. 

While some business owners are concerned about a lack of understanding, with 17% of them believing their employees don’t fully understand AI, 34% say their employees are optimistic about using the technology. This suggests a need not only for clearer guidance and training but also for harnessing that enthusiasm to implement new tools effectively.[5]

Yet, beneath the worry, there’s curiosity. 76% of entrepreneurs want to learn more,[4] and 27% feel genuinely excited about AI’s potential – if they can use it the right way.

What do other entrepreneurs say about AI?

Asked by Uswitch SME about her views on AI, Yasmin Waters, a 28-year-old small business owner and travel consultant based in Manchester with Travel Counsellors, shared how artificial intelligence has become an integral part of her daily routine, both in business and in crafting unforgettable travel experiences for her clients. 

Yasmin said: “As a small business owner and ‘one woman band’ I’ve found AI to be really useful at secondary research tasks and descriptive tweaks on quotes (hotels, for example). I also find it useful with my social media management. 

“One area where I am precious about AI is when it comes to replacing human creativity (copywriting/editorial, graphics, video editing), because I think stretching our minds through creative means should be admired and celebrated as much as possible. A true sense of originality is becoming increasingly rare, so where possible – and when I have the time – I try to write in my own words.

“One area that does fill me with dread when it comes to AI is water usage. I genuinely do care about this planet and I’m aware of the extensive resources required to cool servers etc. I really hope, soon, tech giants take responsibility and find plausible solutions.”

Ways you can use AI for your business responsibly, according to a Uswitch business expert

Despite entrepreneurs feeling hesitancy when it comes to using AI tools for their business, there are still many entrepreneurs who are excited about the possibilities. If you’re thinking about trying out new AI tools and models, here are some ways you could use AI (responsibly) to elevate your business: 

• Use generative AI to power content at scale: While 23% of entrepreneurs don’t trust AI to write content for them,[3] that doesn’t mean it can’t play a valuable role in the process. You can still use AI to enhance your content without compromising your voice or authenticity. Research different AI tools that can help with research, surface insights or even personalise outreach, so you can boost your content efforts without taking over the narrative.
• Custom AI models for industry-specific tasks: Businesses in legal, healthcare and logistics are training models with their own data to make AI more relevant and accurate. Thanks to platforms like Microsoft Copilot and Notion AI, you can harness AI without needing a dedicated data science team.
• Use AI-driven routine support: Go beyond chatbots. From letting AI handle routine tasks like data entry, scheduling, and answering basic customer inquiries, having AI support for routine tasks could free up human employees for more complex work and streamline processes.
• Tighten trust and transparency: AI doesn’t need to be a black box. Build trust with customers and staff by setting clear policies around how you’re using AI, where human oversight still matters, and how data is protected. This includes not sharing sensitive or company-specific information with open AI platforms and ensuring all usage complies with your organisation’s data and security standards.
• Consider a business credit card to support AI investment: If you want to invest in AI tools, you could use a dedicated business credit card to help you manage these expenses more effectively. By keeping your AI-related purchases on a business card, you can separate them from personal expenses, track spending, and maintain a clear overview of your cash flow. This approach helps you invest in growth without affecting your day-to-day finances, while also allowing you to monitor ROI and take advantage of potential rewards.
• Always keep a human in the loop: Uswitch data shows SME owners know AI isn’t perfect, and they’re sceptical for good reason. It’s important to always be aware of your intended outcomes and make sure they have a human in the loop to double-check the accuracy of the information AI is providing.

Andy Elder, Uswitch credit cards business expert said: “AI can be a powerful tool for small businesses – but only when it’s used with purpose. The hesitation we’re seeing isn’t a rejection of innovation; it’s a call for clarity, trust, and real-world relevance.

“You don’t need to automate everything overnight. Focus on where AI can genuinely lighten the load, whether that’s streamlining admin, improving decision-making, or enhancing how you connect with customers. The smartest approach is to start small, measure impact, and build confidence from there.”