AI continues to capture the attention of business leaders across the United Kingdom, with its impact on small and medium-sized enterprises (SMEs) deepening as we move into 2026. Yet, the journey towards widespread AI adoption remains nuanced – a mixture of enthusiasm, practical hurdles, and evolving optimism. Notably, the rise of agentic AI, which refers to AI systems that can autonomously pursue goals and proactively adapt based on changing circumstances, is reshaping how SMEs think about business transformation.
The rise of AI in UK SMEs in numbers
Government bodies and industry organisations alike have emphasised AI as crucial for economic growth. According to the UK Department for Science, Innovation and Technology, in late 2025, 36% of UK SMEs are now using or piloting at least one AI technology – up from 29% in 2024. A further 22% are actively exploring AI use cases, reflecting ongoing momentum. Adoption is accelerating most rapidly in sectors such as retail, manufacturing, professional services, and logistics, where agentic AI is increasingly being deployed for intelligent forecasting, adaptive customer service, and autonomous supply chain optimisation.
Latest Adoption Statistics
- 36% of UK SMEs use or pilot AI solutions in 2026.
- 22% are exploring AI applications for future deployment.
- Over 45% of retail SMEs employ AI-powered recommendation engines and chatbots.
- Manufacturing SMEs report a 41% year-on-year rise in agentic AI deployments for predictive maintenance and quality control.
- Professional services and logistics have seen a 38% increase in AI-assisted automation projects.
Advantages of AI and Agentic AI for UK SMEs
AI, including agentic systems, offers a host of benefits that empower SMEs to compete more effectively against larger organisations. Key advantages include:
- Efficiency and Automation: AI automates routine tasks such as data entry, invoicing, and inventory management, freeing staff for strategic roles. Agentic AI goes further, autonomously identifying optimisation opportunities and adapting workflows without direct human intervention.
- Data-Driven Decision Making: AI offers actionable insights, from customer behaviour analysis to predictive analytics for supply chain management. Agentic AI can anticipate market shifts and recommend strategic pivots proactively.
- Personalisation: AI-driven tools deliver personalised experiences at scale, especially in e-commerce, with agentic AI tailoring marketing campaigns in real time.
- Cost Reduction: automated processes reduce manual effort, errors, and operating costs. Agentic AI helps SMEs dynamically reallocate resources for maximum efficiency.
- Enhanced Security: with cyber threats evolving, AI-powered security platforms can autonomously monitor for anomalies and take protective actions, a hallmark of agentic AI capabilities.
Sectors leading in AI adoption – and those poised to accelerate
- Retail & E-Commerce: in 2026, 45% of UK retail SMEs leverage AI for recommendations, customer service, and dynamic pricing. Agentic AI now supports fully autonomous inventory management and customer engagement workflows.
- Manufacturing: a 2025 Deloitte report shows a 41% increase in agentic AI pilots for predictive maintenance, quality assurance, and supply chain automation.
- Professional & Financial Services: AI chatbots, fraud detection, and document automation have become the norm, with agentic AI driving adaptive, self-improving client service models.
- Logistics & Transport: agentic AI is increasingly used for route optimisation and demand forecasting, with SMEs reporting a 28% reduction in delivery times and operational costs.
However, construction, agriculture, and creative industries continue to lag, mainly due to unique operational requirements or a lack of tailored agentic AI solutions. These sectors stand to benefit from emerging agentic AI applications such as autonomous project management, intelligent crop monitoring, and AI-driven content creation.
- According to a British Business Bank survey (2026), 34% of UK SMEs plan to increase investment in AI and automation over the next 12–18 months.
- PwC estimates AI (including agentic AI) will contribute up to £245 billion to the UK economy by 2030, with SMEs accounting for a growing share as adoption accelerates.
- Only 19% of SMEs consider themselves “advanced” in their AI journey, highlighting substantial room for growth.
Charting the path forward
AI, and particularly agentic AI, are no longer just buzzwords – they are rapidly becoming operational realities for UK SMEs. While adoption rates and sophistication levels vary, the trend is undeniable: those who invest early in AI and agentic technologies are enjoying greater efficiency, competitiveness, and resilience. The key to widespread adoption lies in addressing the real-world concerns of cost, complexity, and capability, while nurturing a culture ready for change.
As agentic AI platforms become more accessible, and with success stories multiplying, the question for UK SMEs is no longer if, but when and how, AI will become a central pillar of their business strategies. The road ahead promises not only short-term gains but also sustained growth and innovation as the new norm for the sector in 2026 and beyond.
Speak to us about AI.
