Over one in four (28%) British small business owners have used AI tools to help run their business according to GoDaddy Venture Forward data, a multi-year research initiative which analyses over 680,000 British small businesses with fewer than 10 employees.

With a growing body of evidence, it is clear small businesses – often secondary in AI discussions – are at the forefront of driving measurable change. Almost half (45%) of UK entrepreneurs believe AI will help them compete among larger businesses.

AI tools are enhancing productivity, with entrepreneurs utilising them to automate time-intensive jobs. Copywriting (70%), summarising information (51%), and content creation (40%) were most popular amongst AI users.

This is allowing these entrepreneurs to focus on their growth strategy, with four in five (78%) expecting revenue growth over the next year, versus three in five (58%) not using AI. Additionally, more than a third (36%) of entrepreneurs using AI plan to hire more staff in this timeframe, compared to one in six (15%) who are not.

Adoption of AI is not yet uniform

Despite its advantages, AI adoption varies across generations, demonstrating a need to ensure technology does not leave people behind. Gen Z are embracing AI more than any other generation, with over two in five (43%) using the tools to enhance their business. This contrasts with Baby Boomers, where one in five (25%) are using the tools. Millennials (33%) and Gen X (27%) are also behind Gen Z in their adoption of AI.

London (35%) is the region of the country where AI for business is most commonly used, closely followed by the North West of England (32%) and Wales (30%). Conversely, Yorkshire and the Humber (20%) has the fewest small businesses using AI.

GoDaddy customers using its AI experience, Airo, generate sales, traffic and engagement

GoDaddy Airo, an AI-powered experience, offers a case study showing how AI is transforming small businesses, boosting sales and revenue whilst driving website traffic.

Businesses selling through GoDaddy’s Online Store were recently found to generate up to 30% more sales with GoDaddy Airo. Similarly, those on GoDaddy’s Websites and Marketing sites powered by Airo generate 30% more sales through their Online Store compared to those that do not.

GoDaddy Airo users who leverage the technology to create a logo attract up to 45% more web traffic. Additionally, Airo users experienced up to 81% more Instagram profile impressions and 18% more Facebook impressions with AI social posts.

Rachel Bambrough, owner of SUP4 and Cove Lifestyle Studios, said: “My business journey so far has been exactly that – a journey, which has enabled me to create a space where people can connect and feel part of something special. Early on, I turned to AI tools like GoDaddy Airo to help me build my online presence, and it’s been a game-changer. From refining my website to boosting my marketing efforts, AI has been an invaluable support system, helping me reach my audience more effectively. For any entrepreneur out there, don’t be afraid to embrace AI. It’s not about replacing your voice – it’s about amplifying it and making your business work smarter, not harder.”

Andrew Gradon, Head of GoDaddy UK, said: “The last few years have been challenging for small businesses and the entrepreneurs that run them. However, AI tools and technology are changing the game to help small businesses save time, create jobs and generate more sales.

“Amongst GoDaddy customers, we’ve seen how AI is transforming their businesses – supporting them in increasing sales figures and driving traffic to their websites and social channels. GoDaddy Airo is a transformative AI-powered experience for entrepreneurs and it’s helping our customers strengthen their businesses.”

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