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The UK risks falling behind in the global competition to utilize artificial intelligence, with small enterprises in particular lagging behind their American equivalents, according to Debbie Weinstein, President of Google Europe.
Weinstein, who formerly headed Google’s UK and Ireland divisions, stated that although Britain continues to be an innovation center, its small and medium-sized enterprises (SMEs) are more hesitant to embrace AI — a disparity that could hinder productivity growth and broader economic benefits.
“The largest divide in terms of productivity-driven expansion is with the US,” Weinstein remarked. “If you examine what has propelled the US compared to the UK over the past decade, much of the unlock that is lacking in this nation relates to productivity.”
Research from Google indicates that AI-enhanced tools could boost productivity among UK SMEs by as much as 20%, effectively providing employees with an extra working day each week.
The company’s evaluation projects that AI implementation could release £200 billion in extra economic value for UK small enterprises by the decade’s end.
SME leaders surveyed by Google are optimistic that the technology could increase revenues by an average of 30%, with the most significant advantages anticipated in customer service automation, marketing, and administrative responsibilities.
“Small and medium-sized enterprises truly are the essence of the UK economy,” Weinstein stated. “Whenever you converse with a small business proprietor, they invariably mention that time is their greatest challenge.”
However, she cautioned that firms that do not evolve risk being left behind.
“My primary concern is that there exists this potential for growth — both for each of these individual small enterprises and the economy as a whole — that isn’t realized because individuals lack the tools or skills to seize this opportunity.”
To assist in bridging the adoption gap, Google has initiated the AI Works for Business program in collaboration with the Department for Business & Trade and NatWest.
The initiative will provide a series of complimentary in-person workshops throughout Manchester, Leeds, Edinburgh, and Cardiff over the next two months. Approximately 1,000 small business proprietors have already signed up.
Peter Kyle, Secretary of State for Business and Trade, noted that the partnership would aid small firms in acquiring essential practical skills.
“AI is altering the manner in which we operate,” Kyle remarked. “This collaboration with Google will furnish small businesses with hands-on experience on how to leverage the numerous advantages of AI to innovate, expand, and compete on the global front.”
Weinstein mentioned that the workshops build upon pilot programs conducted earlier this year, where brief training sessions significantly enhanced AI usage among participants.
“What we discovered in those trainings is that a few hours of practical experience made a substantial difference,” she said. “When we conducted a couple of hours of training and returned, there was a doubling of the daily utilization of AI.”
Google introduced Gemini, its generative AI chatbot, into its suite of productivity applications in February 2024, granting businesses access to AI-driven writing, data analysis, and planning tools directly through Google Workspace.
Nevertheless, while large corporations have swiftly integrated AI into their operations, smaller enterprises have been more sluggish to keep pace — often due to a lack of awareness, financial barriers, or uncertainty regarding regulations.
Weinstein’s remarks contribute to an escalating discussion on how Britain can close its AI productivity gap. Economists caution that although the technology could revolutionize efficiency across sectors, the benefits will only materialize if businesses adopt early and invest in digital skills.
“This isn’t merely about hype,” Weinstein stated. “It’s about making certain that small businesses — which form the foundation of the UK economy — have the opportunity, confidence, and support to utilize AI to their benefit.”
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