But if you’re running an SME, AI might feel like just another thing on an already full list. That’s understandable. Between keeping customers happy, managing teams, staying on top of cash flow, and everything else that comes with the day to day, AI can easily fall down the priority list.

In our Work That Works report, we spoke with over 2,000 small business leaders and employees in the UK and found that only half of SMEs feel they’ve kept pace with tech and innovation. The gap is even more visible in smaller firms. AI implementation is now the top challenge for small business leaders ahead of economic pressures and talent shortages. For many, it’s less about resistance and more about capacity.  Many said they were still in survival mode.

Even so, around half the SME leaders we spoke to said they’re already seeing real productivity gains from AI. That’s a strong sign of what’s possible when the right strategy is in place.

Build a culture that makes AI work for everyone

The answer isn’t to keep adding more tools. It’s to make sure they understand what’s being introduced and why. Give them time to try things out. Offer support that feels useful, not overwhelming. One of the key takeaways from the report is the importance of leaders taking time to understand the day-to-day experiences of their employees, including the details of how they work and creating space for honest feedback. Giving people ownership, a voice and a sense that their input genuinely matters.

We’ve done this at Employment Hero. Introducing AI at base level, then providing training for our team has made a real difference. Once people feel confident, they start using AI in ways that genuinely help. Within our own culture we’ve also found it valuable to celebrate how people are using AI and to provide a space where they can ask questions and learn from each other

Using AI daily in your business can still feel intimidating, especially when you’re unsure how to begin. That’s normal. It can seem daunting, especially when you’re already juggling a hundred other priorities. But it doesn’t have to be all or nothing. Small steps can make a big difference.

The goal is to create a space where people feel safe to learn, test and get things wrong. That’s when real progress starts.

Focus on people first

Technology should help people do their best work. That’s always been my view. Our research also showed that when employees see their company actively investing in technology, they’re 28% more likely to rate their productivity as high and 20% less likely to feel they’re wasting time on inefficient tasks.

But too often, new tools get rolled out with no context. No conversation. Just another platform and a set of expectations.

It doesn’t work. People get confused. Productivity drops. In fact, when employees feel their company handles automation poorly, their reported productivity can be up to 50% lower compared to those who feel their company is doing it well.

Good AI strategy starts with people, not software.

Recognition matters more than we think

Here’s also something that stood out. The number one thing employees said improved their productivity? Feeling valued.

Not training. Not software. Just simple recognition.

That could be a thank you. A bit of positive feedback. A five-minute check-in. These small moments carry more weight than most tech rollouts. If people feel appreciated, they’re more likely to try something new. Including AI.

Don’t assume Gen Z has it covered

Everyone assumes Gen Z is leading the way on AI. Actually, it’s millennials who are out in front. That tells us adoption isn’t always where we expect it to be.

Different generations will need different types of support. You can’t take a one-size-fits-all approach.

Leadership matters here too. If a manager is resistant or dismissive, that attitude spreads. Even if the business is supportive on paper. That’s why leaders need to be coached and encouraged to keep the conversation going.

Bring people along

The Government’s investment in AI is a good sign. But investment alone isn’t enough. You still need to bring people with you.

We’ve seen that when companies introduce AI properly, the impact is clear. They see twice the productivity of those that don’t.

The potential is huge. But the real value comes when people understand how to use it and feel supported every step of the way.

The tech is ready. We just need to make sure our people are too.

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