Yorkshire has UK’s lowest AI adoption rate among SMEs, research finds

Yorkshire and the Humber has the UK’s lowest reported rate of artificial intelligence adoption among small and medium-sized businesses, according to research from the Social Market Foundation cited by Intuit, with 64 per cent of firms surveyed in the region using the technology.

The research estimates that greater AI adoption could generate an additional £3.1bn in revenue for small and medium-sized businesses across the region.

The figures were released as Intuit, the financial software group behind QuickBooks, prepares to bring its More with AI Tour to Barnsley on Friday, offering free, hands-on training for local businesses.

The regional findings draw on the SMF’s wider report, Byte-sized growth, published on 19 October 2026 and sponsored by Intuit. The SMF says it retains full editorial independence over its outputs.

Nationally, the report drew on a survey of 1,015 senior leaders at small and medium-sized businesses. The SMF found that 79 per cent said their business used AI in some capacity, with adoption at 60 per cent among micro firms, 86 per cent among small firms and 92 per cent among medium-sized companies.

The SMF’s central estimate is that greater adoption could add about £42.6bn to SME revenue across Great Britain, within a range of £38.1bn to £47.3bn depending on how many firms take up the technology. The central figure assumes that firms which say they intend to adopt AI go on to do so.

Data security (33 per cent), quality or reliability (31 per cent) and skills (26 per cent) were the barriers respondents cited most often, according to the SMF.

Other surveys have produced different national figures. Research by the insurer Simply Business, published in September, put AI use among UK small businesses at 47 per cent, up from 22 per cent in 2025.

The adoption figures come as the latest Intuit QuickBooks Small Business Index found that Yorkshire and the Humber recorded the steepest regional decline in small business employment in the UK in October, shedding 1,900 jobs.

Friday’s event will take place at Burntwood Court Hotel in partnership with the British Chambers of Commerce and Barnsley & Rotherham Chamber of Commerce. Intuit said it would feature expert-led workshops on AI fundamentals, practical business applications and responsible use, and give attendees the chance to test AI tools.

Michael Kennedy, senior vice president and chief corporate affairs officer at Intuit, said: “Governments across the globe have set ambitious goals for AI adoption and workforce upskilling, and small and medium businesses are central to achieving them.”

He added: “Through our partnerships with the BCC, we are bringing that commitment directly to the communities where it matters most.”

Businesses due to attend include Sheffield-based Make Your Mark UK, which provides training, executive coaching, mentoring and consultancy; Barnsley-based Visualised It, a video marketing and training business; and Utility Source, a family-run utilities consultancy that works with property developers and investors across the UK.

Mark Smith, founder of Make Your Mark UK, said: “You don’t need a big team or a big budget to benefit from AI. As a sole trader, I’ve already seen how it can take the pressure off everyday tasks, save valuable time and free me up to focus on what really matters, which is my clients. But I know I’ve only scratched the surface of what’s possible.”

Dean Pattison, founder of Utility Source, said: “When you’re running a business with six people, every hour counts.” He added: “We’ve already started investing in our own technology, but knowing where to focus next isn’t always straightforward. There’s a lot of talk about AI, but what small businesses really need is practical guidance on how it can make a difference to the way we work.”

Joada Allen, managing director of Visualised It, said: “Small businesses aren’t short of ambition, but with costs rising and resources stretched, finding the time and money to invest in growth isn’t easy. We’re not short of technology either. The challenge is making it all work together.”

She added: “At Visualised It, we’re already using AI and digital tools, but we’re still managing different systems across the business.”

The Barnsley session forms part of Intuit’s international More with AI Tour, which provides free AI education to small and medium-sized businesses.

 

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