AI in the Workplace: What Business Owners Need to Know

Artificial Intelligence (AI) is no longer just a futuristic concept, it’s increasingly part of how UK businesses operate, from small startups to established SMEs. For business owners understanding how AI can be used responsibly is crucial to protect both your people and your business.

What is AI and why business owners should care?

“Artificial Intelligence” (AI) covers technologies that allow machines or software to perform tasks historically requiring human intelligence: understanding language, recognising patterns, making decisions, or generating content.

In the UK:

• Only 9% of organisations reported using AI in 2023, showing many SMEs are still in the early adoption phase. (ONS)

• Usage is growing: there’s been a 66% increase in AI adoption at work since September 2023. (The HR Director)

• Yet, just 44% of UK employees reported using AI in a professional setting in the past six months, compared to 67% globally. (EY AI Sentiment Index)

This gap presents opportunity, AI can help SMEs operate more efficiently but also risk if adopted without proper policies and oversight.

How AI Can Be Used Positively Across SMEs

AI isn’t just for large corporations, UK SMEs across sectors are finding practical, business‑enhancing uses:

1. Customer service & engagement
AI chatbots and virtual assistants can handle routine queries 24/7, freeing human staff for complex tasks. SMEs in retail and e‑commerce have reported improved response times and reduced costs. (Brightmine)

2. Marketing, sales & personalisation
AI can analyse customer data, segment audiences, tailor messaging, and optimise pricing. In the UK, 72% of new SMEs plan to use AI for marketing in 2025, and 45% of SMEs already use AI for marketing/advertising tasks. (Constant Contact, YouGov)

3. Operations, supply chain & inventory management
AI can forecast demand, optimise stock levels, reduce waste, and predict maintenance needs. UK SMEs using AI-powered inventory systems have reduced holding costs by 25% and increased sales by 15%. (Brightmine)

4. Financial forecasting & business insight
AI can help SMEs analyse cash flow, model scenarios, and spot trends. This supports better decisions and reduces reliance on guesswork. (AIQ Nexus)

5. Service sector & professional firms
Professional service SMEs (legal, accounting, consultancy) use AI for contract review, document processing, and proposal generation. UK legal SMEs report significant reductions in document review time. (Brightmine)

Protections & Considerations

Introducing AI without safeguards can create legal, ethical, and operational risks. UK business owners should consider:

• Governance & accountability: Ensure AI systems comply with UK principles on safety, transparency, fairness, and accountability. (Deloitte)

• Data protection & privacy: Any employee or customer data processed by AI must comply with UK GDPR. (ICO)

• Bias & fairness: Monitor AI outputs to prevent discrimination or unfair treatment.

• Shadow AI: Staff may use unapproved AI tools; implement policies to manage risk. (IT Brief)

• Workforce impact & reskilling: Plan for how AI will augment roles and consider training to upskill staff. (IPPR)

Essential Policies for SMEs

Business owners should have policies covering:

1. AI & automation usage – approved tools, data use, human oversight.

2. Explainability – clarify when AI assists decisions and how employees can query them.

3. Training & upskilling – ensure staff understand AI tools and responsibilities.

4. Data governance & security – protect sensitive information and maintain audit trails.

5. Impact monitoring & oversight – regularly review outputs and employee feedback.

6. Change management & communication – inform staff about AI adoption and provide support.

Managing Staff and AI

Practical steps for businesses:

1. Map AI workflows – identify tasks AI supports and who makes final decisions.

2. Engage your team – involve employees in discussions about AI adoption.

3. Pilot before full rollout – test tools on small-scale projects.

4. Train & support – ensure staff know how to interpret AI outputs and raise concerns.

5. Monitor & review – track performance, bias, and employee perceptions.

6. Preserve the human touch – critical decisions should remain human-led.

Final Thoughts

AI can transform business operations, improving efficiency, insight, and scalability. But without proper policies, oversight, and training, it can create risks.

Business owners should approach AI with a protective, people-first lens: clear policies, transparency, human oversight, and ongoing monitoring.

Contact Regent HR to ensure your business has the right policies and guidance in place to manage AI safely, supporting both your processes and your people.