UK and Irish SMEs Struggle with AI Adoption, Training Gaps Revealed

AI Adoption Challenges for UK and Irish SMEs

Small and medium-sized enterprises (SMEs) in the UK and Ireland are facing significant hurdles in adopting AI technologies, according to a recent analysis by ProfileTree, a leading digital agency based in Belfast. The report, which assessed over 1,000 AI training sessions, highlights a widespread lack of preparedness among SMEs, despite growing interest in AI’s potential to transform business operations.

ProfileTree’s findings indicate that while enthusiasm for AI is high, many SMEs lack the practical knowledge needed to implement AI tools effectively. This gap is particularly pronounced in regions like Northern Ireland, where businesses are eager to leverage AI but struggle with limited access to expertise and training resources tailored to their needs.

The Cost of AI Unpreparedness

The report underscores the financial and operational risks associated with AI unpreparedness. SMEs that fail to develop coherent AI strategies risk falling behind competitors, incurring costs from inefficient data management, and losing visibility in an increasingly AI-driven digital landscape. Ciaran Connolly, founder of ProfileTree, emphasizes that the cost of inaction extends beyond missed opportunities, as businesses may face reputational damage from mismanaging AI tools.

"AI is not slowing down, and every month brings new tools and capabilities that businesses need to understand," Connolly stated. "The skills gap we’re seeing today will only widen unless businesses commit to ongoing AI education."

Regional Variations in AI Readiness

ProfileTree’s analysis reveals notable differences in AI readiness across various regions. For instance, businesses in Belfast and other urban hubs like Dublin and London have shown stronger engagement with AI training, likely due to the presence of major technology employers and a more developed digital infrastructure. In contrast, SMEs in smaller towns and rural areas face additional barriers, including limited local expertise and smaller peer networks for knowledge sharing.

In Northern Ireland, cities like Newry, Derry, and Lisburn have demonstrated interest in AI but often lack the resources to move beyond initial experimentation. Connolly notes that these regional disparities highlight the need for more targeted support to ensure that all businesses, regardless of location, can benefit from AI advancements.

The report also highlights sector-specific challenges. Professional services firms, including accountants and solicitors, are increasingly seeking AI training to meet client expectations and remain competitive. Retail and hospitality businesses are exploring AI for customer service and inventory management, but technical confidence remains a significant hurdle. Manufacturing companies, particularly in the Belfast area, are interested in AI for quality control and supply chain optimization but face implementation challenges.

ProfileTree’s training data shows that businesses in professional services, retail, hospitality, manufacturing, and creative industries are all seeking AI guidance, but with varying levels of baseline understanding. Professional services firms, including accountants, solicitors, and consultants, have shown particularly strong demand for AI training, driven by client expectations and competitive pressure.

ProfileTree plans to expand its AI training offerings in 2026, with new programmes focused on sector-specific AI applications, advanced AI strategy for growing businesses, and AI implementation support for businesses ready to move beyond training into active deployment. The agency also intends to publish further research on AI adoption patterns among UK and Irish SMEs, providing ongoing insights into how the business community is adapting to the AI transformation.

The analysis suggests that businesses in Northern Ireland and the Republic of Ireland face particular challenges in AI adoption, despite strong interest in the technology. The findings highlight the need for practical, implementation-focused AI education tailored to the needs of smaller businesses.