The AI Opportunity: Sage boss Steve Hare
Steve Hare is the CEO of Sage Group and says small businesses have a lot to gain from AI.
It is vital for the UK economy that small businesses are not left behind by AI.
I was recently asked to join the government’s new AI Opportunity Forum, which has been set up to explore AI’s potential to revolutionize healthcare and public services, but also for its ability to fundamentally changing the lives of those who build and grow their own businesses.
Small and medium-sized businesses (SMBs) want to see the time-saving benefits, but not for job cuts.
Small and medium-sized businesses are the backbone of our economy and a crucial engine for future growth. They make up 99 percent of UK businesses and support 27 million jobs across the country.
Therefore, policymakers need to think very carefully about how we can ensure that AI is used to ensure that small and medium-sized businesses are more efficient and profitable, which will save taxpayers in the long run.
From running Sage, I know that small businesses are constantly looking for practical solutions to everyday challenges caused by inflation and difficulties attracting and retaining talent.
AI does not and should not herald a future of major job losses.
It must be a catalyst for growth, innovation and economic prosperity. For UK SMEs, it presents an unparalleled opportunity to increase productivity and strategic value, paving the way for a thriving AI-powered future – but we must ensure they have a voice in the discussions happening today .
In this context, AI is less about replacing human skills and more about improving them. There is an urgent need for improvement in areas such as workflow automation, compliance and cash flow, and AI could be an answer.
It is already being used to automatically categorize banking transactions for digital tax reporting, reducing the time taken to close financial periods by almost 80%. These time savings realized on other tasks will transform the way SMEs can function – and accelerate the growth of their businesses.
SMEs view trust as an essential element
From the many daily conversations I have with SME owners and their accountants in the UK, trust emerges as the most important consideration when adopting AI. Keeping promises, proving their benefits and ensuring confidentiality are crucial.
To use AI with confidence, SMBs need assurance that the responses generated are reliable and that their employees are adequately trained to implement AI without introducing new risks. People will only entrust their own work to technology if they believe it is safe, accurate, and that humans are always in control.
The successful deployment and adoption of AI, aimed at achieving the AI Opportunity Forum’s target of creating over £400 billion of economic value for the UK economy by 2030, will require collaboration between standard setters and the private sector, led by a robust agenda for the digital economy.
AI developers must follow universal standards that build trust, protect data privacy and individual rights, and promote social inclusion and equality.
At the same time, these standards should promote innovation and economic growth in equal measure.
Furthermore, we must prioritize equipping individuals with forward-looking skills to leverage AI to advance their businesses and back-office processes.