A new survey of owners at UK SMEs has found that just over half of small and medium-sized UK businesses have increased their cybersecurity spending and that most are planning on integrating artificial intelligence into their business functions to some extent. The Bionic SME Insights Report polled 500 owners at UK SMEs regarding cybersecurity spending and their attitudes towards AI.

Slightly more than half of owners (53 per cent) stated that they had increased their spending on cybersecurity during 2024. Most of these owners (45.4 per cent) said they only increased spending slightly, with 8 per cent saying they had increased their spending significantly. 42.3 per cent, meanwhile, reported no increase.

80 per cent of business owners polled said that they did not believe that they had been targeted in a cyberattack during 2024. However, the report’s author cast doubt on the reality of this, citing government figures that suggested attacks were far more widespread.

Laura Court-Jones, Small Business Editor at Bionic, commented: "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.”

There were also considerable variations across different sectors, with industries including IT and communications, health and social care and transport and logistics all reporting high levels of increased investment in cybersecurity.

Regarding attitudes towards AI, the survey found that 74 per cent of owners said they were likely to incorporate AI into their business’ functions to some degree, with 25 per cent saying they were very likely to do so and 10.4 per cent considering it extremely likely. 38.6 per cent said that AI uptake was moderately likely for their business. Close to a fifth of owners polled however (19.2 per cent) said that it was not at all likely that their business would begin utilising AI, while 6.8 per cent said that they were unsure.

Despite the generally positive attitudes cited towards AI adoption, the survey also highlighted significant concerns about incorporating the technology into businesses. The most commonly cited issue was the risk of inaccuracy, which was named by nearly a quarter of respondents (24.8 per cent), followed by knowledge gaps within their existing workforce (22.8 per cent).

Approximately a fifth (19.8 per cent) said that they were most concerned about a lack of AI regulation, while 10.8 per cent were worried that AI may be too expensive. Other concerns cited included not having room for AI within their operations (8.8 per cent), job replacement (8.6 per cent) and potential damage to customer relationships (4.4 per cent).

Regarding other concerns surrounding AI, Bionic’s Senior Content Manager Les Roberts added: "Privacy and security could also be an issue, as handling customer data through AI could increase the risk of breaches or misuse.”

He continued: “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."