The AI opportunity: Sage boss Steve Hare
Steve Hare is the chief executive of Sage Group and says small businesses have much to gain from AI.
It is vital for the UK economy that small businesses are not left behind by AI.
I was recently asked to join the Government’s new AI Opportunity Forum, set up to explore AI’s potential to revolutionise healthcare and public services but also for its capacity to fundamentally change the lives of those who build and grow their own businesses.
Small and medium businesses (SMBs) want to see the time-saving benefits – but not so they can cut jobs.
SMBs are the backbone of our economy and a crucial driver of future growth – they make up 99 per cent of UK businesses and support 27 million jobs across the country.
Therefore, policy makers should think very carefully about how we can make sure AI is used to ensure small and medium businesses are more efficient and profitable, which will save the taxpayer in the long run.
I know from running Sage that small businesses are continuously seeking practical solutions to everyday challenges caused by inflation and difficulties in attracting and retaining talent.
AI does not, and should not, herald a future of extensive job losses.
It should be a catalyst for growth, innovation, and economic prosperity. For UK small and medium businesses, it presents an unparalleled opportunity to boost productivity and strategic value, paving the way for a thriving, AI-empowered future – but we need to make sure they are having a voice in the discussions happening today.
In this context, AI is less about replacing human skill and more about enhancing it. There’s a pressing need for improvement in areas such as workflow automation, compliance and cash flow, and AI could be an answer.
It is already being used to automatically categorise bank transactions for digital tax filing, reducing the time taken to close financial periods by nearly 80%. These time savings realised in other tasks will be transformative in how SMBs can run – and accelerate the growth of their businesses.
SMBs see trust as a vital
In the many daily conversations I have with SMB owners and their accountants across the UK, trust emerges as the paramount consideration in adopting AI. Delivering on promises, proving its benefits and ensuring confidentiality are crucial.
For SMBs to confidently use AI, they need assurance that the generated answers are reliable and that their employees are adequately trained to implement AI without introducing new risks. People will only entrust their own work to technology if they believe it is safe and accurate, and that a human is always in control.
The successful application and adoption of AI, aimed at delivering the AI Opportunity Forum’s goal of creating over £400 billion in economic value for the UK economy by 2030, requires collaboration between standard setters and the private sector, guided by a robust digital economy agenda.
AI developers should follow universal standards that establish trust, safeguard data privacy and individual rights, and promote social inclusion and equity.
At the same time, these standards should equally promote innovation and economic growth.
Moreover, we must prioritise equipping individuals with future-ready skills to leverage AI for advancing their businesses and back-office processes.
