The pressure is on for compact businesses to embrace artificial intelligence, according to former UK Prime Minister Rishi Sunak. Now a senior advisor to Goldman Sachs, Sunak warned that smaller firms risk being overtaken – or outright acquired – by larger companies rapidly integrating AI into their operations. His message, delivered at a recent summit in Birmingham, underscores a growing concern that a widening AI gap could reshape the competitive landscape for businesses of all sizes.
Sunak’s comments came during Goldman Sachs’ 10,000 Small Businesses UK summit, an event bringing together leaders from 300 companies in association with the University of Oxford’s Said Business School. The urgency in his message reflects a broader shift in the business world, where AI is no longer a futuristic concept but a present-day necessity. The stakes, he argued, are particularly high for small and medium-sized businesses (SMBs) that may lack the resources to invest in and implement these technologies.
The push for AI adoption isn’t new for Sunak. While in office, he championed the technology, committing over £100 million to support regulators and universities navigating the challenges of AI, and hosting the first world summit on AI safety. This continued advocacy, now channeled through his role at Goldman Sachs, signals a sustained belief in AI’s transformative potential – and the risks of falling behind. He recently shared an example from his constituency in North Yorkshire, recounting a conversation with a dairy farmer utilizing AI-powered wearables to proactively identify and address mastitis in cattle, preventing significant milk production losses.
The Growing AI Divide and SMB Vulnerability
The concern isn’t simply about keeping pace with innovation; it’s about survival. Sunak’s warning about “global behemoths swallowing up small businesses” highlights a real threat. Larger companies, with deeper pockets and dedicated tech teams, are leveraging AI to streamline operations, personalize customer experiences, and gain a significant competitive edge. Without access to similar tools, SMBs risk becoming increasingly marginalized.
This isn’t a hypothetical scenario. A recent survey conducted by Goldman Sachs in March, encompassing 400 graduates of its 10,000 Small Businesses program, revealed that 98% are already utilizing AI in some capacity. This suggests a degree of awareness and early adoption, but also raises questions about the depth and effectiveness of that implementation. Are SMBs simply experimenting with AI, or are they strategically integrating it to drive meaningful business outcomes?
The benefits of AI for SMBs are becoming increasingly clear. As René Lacerte, CEO and founder of BILL, told PYMNTS CEO Karen Webster last year, “The unlock is going to be tremendous. AI is going to enable people to explore dreams and passions they never thought of before… I think it’s a huge, huge equalizer.” Lacerte predicted a future where even the largest corporations will envy the agility of smaller, AI-powered businesses.
Beyond Adoption: Addressing Legacy Friction
Although, simply having access to AI tools isn’t enough. Many SMBs are hampered by outdated processes and a reluctance to embrace new technologies. A recent PYMNTS Intelligence/Mastercard report, “Ready for Change: Why Nearly Half of SMBs Want to Ditch Cash and Checks,” illustrates this point. The report found that 52% of payments made by Gen Z-owned SMBs are still conducted in cash, despite the availability of more efficient digital alternatives.
As PYMNTS noted, “Individually, these legacy frictions may seem trivial. Collectively, they create a hierarchy of convenience.” This friction extends beyond payments, encompassing areas like data management, customer relationship management, and supply chain logistics. Overcoming these hurdles requires not only investment in AI but also a willingness to overhaul existing systems and workflows.
Practical Applications for Small Businesses
The applications of AI for SMBs are diverse and rapidly expanding. Beyond the dairy farmer’s use of AI-powered wearables, examples include:
- Automated Customer Service: AI-powered chatbots can handle routine inquiries, freeing up staff to focus on more complex tasks.
- Personalized Marketing: AI algorithms can analyze customer data to deliver targeted marketing messages, increasing engagement and conversion rates.
- Fraud Detection: AI can identify and prevent fraudulent transactions, protecting businesses from financial losses.
- Inventory Management: AI can optimize inventory levels, reducing waste and improving efficiency.
- Predictive Analytics: AI can forecast future trends, helping businesses make informed decisions about pricing, product development, and marketing strategies.
Looking Ahead: Continued Investment and Support
The message from Sunak and Goldman Sachs is clear: AI is no longer optional for SMBs. The challenge now lies in ensuring that these businesses have the resources and support they need to successfully navigate this technological shift. Continued investment in AI education, training, and infrastructure will be crucial, as will policies that promote innovation and competition.
The UK government, along with private sector initiatives like Goldman Sachs’ 10,000 Small Businesses program, will likely play a key role in bridging the AI gap. The next step will be evaluating the effectiveness of these programs and identifying areas where further support is needed. A report detailing the initial impact of the 10,000 Small Businesses program’s AI integration initiatives is expected to be released by the University of Oxford’s Said Business School in late 2026.
The conversation around AI and SMBs is evolving rapidly. Share your thoughts and experiences in the comments below.
