Facebook
Britain's News Portal
Around The Clock
BREAKING
Loading latest headlines…

UK small business AI spending quadruples in two years, but remains low overall

Spending by UK small and medium-sized enterprises (SMEs) on AI services has quadrupled in the past two years, according to new data. However, AI tools still represent a small fraction of overall card spending.

  • 12.8% of UK SMEs spent money on AI services in Q2 2026, up from 3.2% in Q2 2024.
  • The mean average spend on AI per small business increased from £93 to £288 over the same period.
  • AI tools account for only 0.1% of the total value of card spending processed by Capital on Tap.

The proportion of UK small and medium-sized enterprises (SMEs) spending on AI services has quadrupled in the last two years, new data from Capital on Tap reveals. In the second quarter of 2026, 12.8% of SMEs spent money on AI companies' services, compared to 3.2% in the second quarter of 2024.

The mean average spend on AI per small business also rose significantly, from £93 to £288 over the same period. However, the median average spend for Q2 2026 was £75.60, indicating that a few large spenders influenced the mean.

Despite this growth, AI tools still constitute a small portion of overall business expenditure. They account for only 0.1% of the total value of card spending processed by Capital on Tap. Extrapolating this to the wider UK economy suggests total annual spending on AI services is approximately £4bn.

Why this matters: The increase in AI adoption among SMEs highlights a growing trend in business technology, but the relatively low overall spend suggests that widespread economic impact from AI spending may still be limited.

Related Articles

Get the news that matters.

Join thousands of readers getting the best of British news straight to their inbox.