Millions of small businesses are warning that artificial intelligence must not come at the expense of human relationships, as the Government launches a major push to put AI at the heart of economic growth and public services.
Mixed feelings towards AI
Brand new research from Novuna Business Finance reveals mixed feelings towards AI from UK small businesses. Only three in 10 UK small business owners (31%) say they are already using AI to support their enterprises, while 27% say they either have no plans to use it, and a further 21% not regarding AI as relevant to their business.
Nationally, many small business owners view AI as being at odds with enterprises that are built on the principle of strong human relationships. The research was conducted by YouGov for Novuna Business Finance among a nationally representative sample of 1,000 small businesses, online between July 5-8, 2026.
Human relationships valued
For small businesses that do not currently use AI, there was a firm view from respondents that their enterprises were built on strong human relationships (59%), a sentiment held strongly among enterprises in the North West (76%), East Midlands (75%), Yorkshire and the Humber (71%) and the North East (68%).
Small business owners that did not use AI also expressed sustainability concerns over the energy and natural resources used to run AI (22%). In addition, many small businesses voiced legal concerns over the collection of sensitive data by AI algorithms (22%), and some had ethical concerns over the perceived risks of demographic bias in AI data (20%).
Business owner's perspective
Pinky Laing, Founder of Remnant Revolution, a small business committed to build and empower women-led communities while championing sustainability by rescuing fabric from landfill to create unique homeware, said: “Many businesses are embracing AI to improve efficiency, but at Remnant Revolution we choose to invest in people. We believe sewing is about far more than making products; it's about creating fairly paid, meaningful work, sharing skills and bringing people together.
"Technology can never replace the confidence and connection that comes from learning something new, the friendships formed around a sewing space or the pride of making something by hand. For us, the future is built on creativity, craftsmanship and real human connection."
Industry insight
Jo Morris, Head of Insight at Novuna Business Finance said: “The Government’s backing of AI has significant potential to drive economic growth across the UK. That said, small businesses are not the same as large corporates, where the efficiencies of scale and the ability to invest in sophisticated tech infrastructure are more central to business planning.
"For many smaller enterprises across the UK, the personal – and human – touch is seen to be more important. Small business owners often know their customers personally and many are deeply rooted in the communities they serve. This is perhaps why so many survey respondents expressed caution towards AI, precisely because their enterprises were built on enduring human relationships and personal service.
"In truth, humans and AI need to co-exist, and in the early days of AI roll-out, striking the right balance is key. Our research also suggests there is an AI knowledge gap that needs to be addressed – with 29% of small business owners openly saying they were unsure how AI could be used in their business."
She added: "So, as a new Government taskforce assesses how AI can deliver economic growth, it is important that small businesses are involved in the process, that their voices are heard, and that they have access to the knowledge and toolkits needed to make informed decisions about whether and how they can strike the right balance between embracing technological innovation and delivering the personalised service that remains central to their business."
Government's AI Taskforce
The findings come as new Prime Minister Andy Burnham launches a new AI Taskforce. The Government’s new AI Taskforce will place artificial intelligence at the centre of government for the very first time, it said. Chaired by Lord Vallance, the Taskforce will work on delivering the Government’s AI agenda and identify ways to use the technology to improve public services and create opportunities across the UK.
Prime Minister Andy Burnham said: "AI is rapidly changing our world and we need to make sure it works for everyone. The opportunities are huge if we get it right and I want AI to power a new industrial revolution that drives good growth in every postcode.
"Lord Vallance is a true public servant with decades of experience, expertise and a track record of delivery. I’m delighted he’ll be chairing the AI Taskforce, putting AI at the centre of all our work to change people’s lives for the better."
Lord Vallance said: "I’m delighted to be appointed Chair of the AI Taskforce and Oxford-Cambridge Growth Corridor. This government is sending a signal that’s clearer than ever before about its commitment to realising the opportunities of AI and Science and Technology.
"The potential to transform public services, drive growth and improve people’s lives is immense, and I intend to make sure we deliver on it."
