New research from Employment Hero reveals a widening “AI advantage gap” in UK SMEs, where senior managers and older millennials leverage AI monthly—at 73% usage—while only 32% of entry-level employees do the same. Contrary to assumptions that Gen Z lead in AI adoption, it is millennials who are the most active users.
Uneven Adoption Impacts Productivity
Leaders credit AI with improving their output, but poor rollout leaves some staff struggling.
The “Work that Works” report shows that employees excluded from AI initiatives report a 50% drop in productivity, a decline mirrored in organisations with minimal AI integration.
SMEs at Greater Risk
Smaller firms—those with under 50 employees—are particularly vulnerable:
- 28% less likely to invest in technology
- Nearly 50% less likely to prioritise technical skills in recruitment
- More prone to operate in “survival mode”
Without strategic support, these businesses risk falling further behind their competitors.
AI as an Enhancer, Not a Threat
The report dispels myths of AI as a shortcut or job replacer. Regular AI users report positive outcomes:
- 40% feel less overwhelmed
- 38% achieve higher-quality work
“AI is only delivering productivity gains for some, and that’s a huge problem,” said Kevin Fitzgerald, UK Managing Director of Employment Hero.
“For technology to drive meaningful change, it needs to be in the hands of everyone. That means investing not just in access to tools, but in the training, support and confidence people need to actually use them. We need a trickle-down, human-centred approach to AI adoption. Closing the AI advantage gap is essential—not just for the success of individual companies, but for improving productivity across the UK economy.”
