UK SMEs boost cyber security spend but wary over AI adoption

A new report from Bionic has explored the perspectives of 500 small and medium-sized enterprise (SME) owners in the UK regarding cyber security spending and attitudes towards artificial intelligence (AI) for 2025.

The Bionic SME Insights Report indicates that a majority of the surveyed UK SME owners increased their cyber security spending during 2024, with 53% stating they had done so. Out of this group, 45.4% said the increase was slight, while 8% described it as significant. In contrast, 42.4% reported no increase.

Despite heightened investment, the majority of businesses believed they were not subject to cyber attacks in 2024. Eighty percent of respondents said their businesses had not been targeted during the year. The report authors questioned whether this perception matches reality, citing government figures suggesting widespread attacks.

"In contrast to our research, the UK government statistics show 50% of businesses reported some kind of cyberattack in 2024, with the most common being basic phishing attacks. This could indicate there is a lack of awareness around the types of cyberattacks small businesses could face. Something as simple as a malicious link in a phishing email could easily go missed by many. And with cyberattacks becoming increasingly common, and SMEs as easy targets, business owners should educate themselves and their employees on what to look out for to keep their business safe," said Laura Court-Jones, Small Business Editor.

The survey found notable variations across industries. In the IT and communications sector, 10% reported significantly increased cyber security spending and 52% reported a slight increase. Health and social care, as well as the transport and logistics sectors, also saw high reported rates of increased cyber security investment.

Alongside cyber security, the survey examined business owners' attitudes toward incorporating AI approaches in 2025. Seventy-four percent said they were likely to integrate AI in their business functions to some extent. Of those, 38.6% said it was moderately likely and 25% said they were very likely to do so. Furthermore, 10.4% considered it extremely likely. Just under a fifth (19.2%) said it was not at all likely they would use AI, and 6.8% were unsure.

Business owners also identified their primary concerns about bringing AI into their organisations. The most cited issue was the risk of inaccuracy (24.8%), followed by knowledge gaps within their workforce (22.8%). Nineteen point eight percent cited a lack of regulation as their top concern, while 10.8% felt AI might be too expensive. Fewer business owners expressed concern about there being no room for AI in their operations (8.8%), fears of job replacement (8.6%), or the possibility that AI could harm customer relationships (4.4%).

Les Roberts, Senior Content Manager at Bionic, commented on the variety of factors that can contribute to hesitancy over adopting AI. "Privacy and security could also be an issue, as handling customer data through AI could increase the risk of breaches or misuse. Some business owners may fear that AI could reduce the personal touch that sets their business apart, especially in customer service. There may even be a simple resistance to change - adopting new technologies can be intimidating, particularly if the current processes are working well enough. These factors combined can make small business owners hesitant to embrace AI despite its potential benefits."

The survey reflects the complex decision-making processes facing SMEs as they navigate the risks and opportunities presented by new technology, particularly in the current economic climate.