Smaller businesses may have an advantage over larger organisations in adopting artificial intelligence, with new research suggesting that clearly defined applications and employee training are more important to success than technological sophistication or the size of an organisation.
Research from Dell Technologies, involving 2,013 UK SME decision-makers and 713 representatives of large businesses, found that 66% of SMEs expect AI to support business growth over the next three years, while 56% believe the technology already provides a competitive advantage.
The findings suggest that expectations are being supported by measurable productivity improvements. SMEs report saving an average of 2.5 hours per employee each week through AI, although the benefits vary considerably between organisations.
A group identified as AI front-runners, representing 7% of SMEs surveyed, reported savings of at least six hours per employee each week. Their experience provides an indication of what separates businesses achieving substantial benefits from those still experimenting with the technology.
More than half of these front-runners (52%) had identified specific AI applications, compared with 25% of SMEs overall. They were also more likely to have senior leaders actively supporting adoption and to have developed a workplace culture receptive to AI.
The difference extends to how technology is deployed. Almost half of front-runners (49%) use AI-powered data analysis, compared with 27% of SMEs generally, while 29% have introduced AI agents against an overall figure of 12%.
For manufacturing SMEs, where operational resources and specialist expertise can be constrained, the findings raise questions about whether technology investment should begin with ambitious transformation programmes or more narrowly defined operational problems.
The research also challenges the assumption that businesses must reach an advanced level of technological maturity before achieving meaningful returns. More than a third of front-runners (38%) still regard themselves as being in the early stages of AI adoption or have introduced it into only a limited number of business functions.
Training appears equally important. Nearly half of front-runners (48%) give employee development the same priority as technology investment, compared with 32% of SMEs overall.
Organisational flexibility may provide another advantage. Among large businesses surveyed, 61% identified greater flexibility as a strength for SMEs adopting AI. Smaller businesses were also less likely to report lengthy approval processes or internal resistance as barriers.
Engineering, manufacturing and construction businesses accounted for 19% of the front-runner group, demonstrating that significant productivity gains are not confined to technology companies.
The broader implication is that smaller manufacturers need not replicate the technology strategies of large industrial groups to benefit from AI. The strongest reported results are associated with identifying practical applications, equipping employees to use them and expanding adoption as benefits become apparent.
