Artificial intelligence could transform productivity for small businesses across the UK, with new research from Google suggesting that AI tools may free up the equivalent of one working day each week. The study, conducted with economic consultancy Public First, estimates that small and medium-sized enterprises could see productivity rise by up to 20% through everyday AI use—from drafting marketing content to turning ideas into actionable business plans.

Debbie Weinstein, Google’s EMEA president, told the PA news agency that AI is helping people communicate more effectively and express ideas more clearly, particularly those with learning differences such as dyslexia. “AI will become part of everyday work for many industries,” she said, highlighting its potential to empower rather than replace human creativity.

Google’s commitment to the UK reflects this optimism, with £5 billion set to be invested over the next two years to meet rising demand for AI tools. Its Gemini AI assistant is being integrated into Workspace products to enhance productivity, while competitors such as Microsoft’s Copilot illustrate the growing momentum of AI-enabled workflows across the economy.

Upskilling remains central to maximising AI’s potential. Weinstein emphasised the importance of helping workers understand how to apply AI to their specific roles, especially as employers face rising labour costs and increasing pressure to automate repetitive tasks. Recruitment firm Hays reports that many UK businesses are now digitising non-essential work to cut costs and improve efficiency.

Google’s research suggests that adopting AI could save UK workers an average of 122 hours per year, potentially adding £400 billion to the economy. In pilot schemes with small businesses, schools and unions, AI usage increased sharply once workers were given training and encouragement. Among women over 55, weekly AI use jumped from 17% to 56%, and daily engagement tripled.

Public sector trials show similar gains. A government pilot involving 20,000 civil servants found that generative AI saved nearly two weeks of time per employee each year by assisting with drafting and summarisation. Coders using AI tools gained almost an hour a day—equivalent to 28 working days annually—demonstrating the technology’s impact on efficiency.

To build on these results, the UK government is partnering with major technology firms including Amazon, BT, Google, IBM, Microsoft and Sage to deliver AI skills training to 7.5 million workers. The initiative aims to give one-fifth of the workforce foundational AI skills, encouraging innovation and access to higher-value jobs.

AI is also revolutionising public administration. A new tool called Extract, developed with Google’s support, can digitise decades-old planning documents in minutes, potentially saving 250,000 hours annually. This technology supports the government’s “Plan for Change,” which aims to accelerate housing development while modernising public services.

These initiatives form part of a wider strategy to embed AI responsibly across the economy. Success depends on more than investment—it requires upskilling, cultural readiness and ensuring that AI complements human expertise. Both Google and government officials emphasise that building trust and confidence will be essential to unlocking AI’s full potential.

The UK’s commitment to combining technological progress with inclusive workforce development reflects an optimistic vision for the future. As AI becomes embedded in both business and government, it promises to boost productivity, foster creativity and drive sustainable economic growth—laying the groundwork for a digitally empowered nation.

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