Why Is AI a Business Necessity in 2025?

Artificial Intelligence or AI for short is no longer a futuristic concept or a tech buzzword, it’s a business necessity. In 2025, AI adoption is not optional; it’s essential and in many cases crucial for survival and growth. Companies across different sectors are struggling to keep up with rising challenges: Tough competition, persistent staffing shortage, and younger customer generation who expect instant, personalised services. AI offers a direct solution to these challenges, not by replacing human effort, but by helping to navigate through them.

According to Mckinsey’s 2025 State of AI report (Figure 1), companies deploying AI are seeing measurable performance gains, with many reporting revenue growth in business units where AI was used, positioning them ahead of competitors in both growth and overall operational efficiency.

This blog is a simple, more practical guide for non-technical individuals to get started with AI. No complex tech talk just a clear steps you can take to start seeing real results within your business. Microsoft reports that over 85% of Fortune 500 companies are already using AI to transform key areas of their business. For example, EY is using Microsoft Copilot to automate audit and tax workflow, freeing up teams for higher-value tasks. Lumen Technologies is redefining its customer success and sales operations through AI, boosting productivity, sales, and enhancing customer service across the global communications sector.

If you’re wondering how to make AI work for you, you’re in the right place.

What Is AI and How Does It Work in a Business Context?

AI refers to computer systems that can perform tasks that typically require human intelligence, such as visual perception, speech recognition, and decision making.

In business today, AI falls into four main categories:

• Generative AI: Content creation tools that write text, generate images or code (e.g., ChatGPT)
• Process Automation AI: Platforms that automate routine workflows like invoicing, scheduling, data entry to reduce manual pressure and boosting efficiency.
• Analytical AI: Systems that go through data, recognise patterns, and deliver insights for smarter decision making.
• Customer Experience AI: Advanced chatbots and virtual assistants that offer personalised support.

According to insights from IBM Institute for Business Value’s 5 Trends for 2025 (Figure 2), by 2025 nearly half of executives (46%) plan to roll out AI at scale to streamline current operations, 44% intend to deploy AI for new innovation, and only 6% will stay in the pilot phase.

Why Does AI Matter for Small and Medium-Sized Businesses?

AI is no longer just a big company play, open-weight offline models and cloud based AI services have democratised access, offering powerful tools on affordable monthly subscriptions instead of massive investments. For example, while only large enterprises could once maintain in-house data analysis teams, today SMEs can tap similar insight through AI platforms starting at around £30 per month.

Beyond levelling the playing field, AI drives real, tangible benefits:

• Cost efficiency: AI can cut customer service expense by up 30%. (IBM - Digital customer care in the age of AI)
• Revenue growth: Sales conversion rates often climb by 35% when companies (e.g., Amazon) deploy AI-driven personalisation tool. (Forbes)
• Operational gains: Overall AI implementation yields about 32.7% improvement in operational efficiency. (The Real Impact of AI on SMEs - Key Numbers & Insights)

Adoption trends underscore AI’s strategic importance. Research by Exploding Topics shows that 77% of organisations are either deploying or investing AI solutions, and 83% consider AI a central priority in their strategic planning. At the same time, the smallest firms (1–4 employees) have seen their AI adoption rate climb from 4.6% to 5.8%, suggesting that the leanest operations often capture the biggest gains.

According to PwC, AI will increase workforce productivity by at least 30%. And in a recent enterprise AI adoption survey by Writer, 88% of employees say generative AI helps them save time, collaborate more effectively, and make faster decisions.

What Are Practical Business Use Cases for AI?

Automating Repetitive Tasks

AI is cutting down manual workloads and accelerating core processes. For example, AI-powered invoice processing can reduce turnaround times, transforming hours of data entry into mear validation. They can handle advanced tasks including: scheduling meetings, summaries, drafts responses, and classify documents automatically.

Another recent example is Aberdeen City Council. They adopted Microsoft 365 Copilot to offload administrative tasks, projecting a 241% ROI in time savings and £2.2 million in annual productivity gains, allowing staff to focus on resident care. Similarly, researchers at Samsung SDS (Jeong et al. 2025) demonstrate an end-to-end automation of corporate expense processing, achieving over an 80% reduction in processing time and markedly lower error rates (arXiv:2505.20733).

Enhancing Customer Service

AI-driven chatbots and recommendation engines deliver 24/7 support without additional headcount, handling multiple inquiries at once, providing consistent answers, and collecting feedback for continues improvement. For example, Engagely.ai used Azure OpenAI Service to power instant, natural language support across voice, chat, and emails channels, driving an 80% increase in customer satisfaction.

Legal Document Analysis

OpenKit’s BAiSICS platform applies AI to legal workflows, automatically analysing, and routing contracts and other documents. What once took hours of manual review now takes minutes, with over 92% accuracy and a 60% reduction in operational costs. Freeing legal teams to focus on higher-value tasks.

Content Creation and Marketing

AI tools can be helpful at research, SEO structuring, and copywriting, accelerating every stage of the marketing process. As a result, organisations using AI for content creation report a 60% boost in productivity and a 30% improvement in content quality.

What Are the Common Concerns About AI Adoption?

Misconceptions around high cost or complexity

Many businesses assume AI is prohibitively expensive or overly complex. In fact, entry-level AI tools for small enterprises start at just £20–£50 per month. Plus, many of these off-the-shelf tools can be setup without any in-house developers or technical expertise. Even simple ROI calculations can show the value: a £50-per-month subscription that saves 15 hours of work at £50 an hour generates £750 in gross savings, about £700 in net monthly savings.

Data privacy and security

Data privacy and security are top concerns for AI adopters in the UK and Europe, particularly around the misuse of personal data and the reliability of AI outputs. According to the latest Public attitudes to data and AI tracker survey, a substantial proportion of UK adults report anxiety about how their data is used and whether AI-generated results can be trusted. The EY AI Sentiment Index 2025 finds that 71% of UK respondents worry about security breaches, 65% fear privacy violations, and 67% doubt the reliability of AI outputs.

In response, the EU’s AI Act, coming into force in 2025, will build on GDPR to enforce strict requirements for data governance, risk assessment, and transparency across Europe. By comparison, the US is adopting new state-level privacy laws, tracked by the IAPP US privacy legislation tracker, but these remain less harmonised across jurisdictions. OpenKit’s UKAS-accredited ISO 27001:2022 certification and Cyber Essentials accreditation ensure enterprise-grade information security management and full compliance with leading UK and European standards.

Trust & Ethics

The ethical use of AI is a rapidly rising concern. Nearly half of business leaders indicate worry about data accuracy or bias in AI systems. To build confidence, organisations must prioritise governance, transparency, and ethical AI practices (IBM - AI Adoption Challenges). At OpenKit, our ISO 9001:2015 certification reflects its robust quality management system and continuous improvement framework, reinforcing the company’s commitment to ethical standards and transparent processes across every projects.

How Do I Get Started with AI in My Business?

Implementing AI can feel daunting, but with a clear roadmap you can turn this uncertainty into opportunity. In the following section, you’ll discover the four essential phases (Figure 3) that we think will ease the way for you, mapping your team pain points, evaluating your options, running pilot projects, and testing demos. That will help you identify the right use cases, choose the best tools in the market, prove value quickly, and build confidence for a full rollout.

1. Map Your Pain Points

   Before implementing AI into your business, first you need to understand your team capabilities, what do they do best and where do they struggle. Have them list tasks that are time-consuming, error-prone, or tedious (like data entry, scheduling, or support workflows). At the same time, survey the AI market to see which tool or solutions match those pain points (Microsofts Quick Start Guide to AI).

2. Find AI Tools

   Once you’ve identified your needs and know exactly what to look for in AI tools. Research and jot down a list of what you find. Here’s a handy starting sheet of the top AI tools and links to their demos:

   AI Tool	Focus	Demo / Sign Up Link
   Microsoft Copilot	Office productivity	https://microsoft.com/copilot
   ChatGPT	General AI assistant	https://openai.com/chatgpt
   Google Gemini	Content creation	https://gemini.google.com
   HubSpot	Marketing automation	http://hubspot.com/products/demo

3. Evaluate Your Options

   With your key pain points mapped and a clear view of available AI tools you should have a checklist to evaluate each tool that is best for your business:

   Criteria	What to Look for
   Data security & privacy	Compliance with GDPR, CCPA, HIPAA, etc
   Staff training requirements	No code interfaces, tutorials or simple user interfaces
   Integration with existing systems	APIs or prebuilt connector for your CRM
   Pricing model	Flat fee vs. usage based; free tiers or trials
   Customer support quality	Low response times, channels (chat, email, phone)
   Customisation options	Ability to tweak prompts, workflow, etc

4. Run Pilot Projects

   The next step is to test out these tools through pilot projects. Rather than jumping into custom AI, start by experimenting with off the shelf AI:

   • Generative content for marketing: Use tools like ChatGPT to draft and optimise blog, and social media posts.
   • Basic FAQ chatbots: Deploy a chatbot on your website to handle common customer questions and free up support staff.
   • Data-analysis workflows: Run automated reports and dashboards that surface customer insights from your existing data.

   These small pilots let you prove ROI and refine requirements before a major rollout.

What Are the Key Takeaways for SMEs Using AI?

AI in now accessible to SMEs, not just tech giants

As AI becomes more affordable and easy to deploy, small and medium-sized businesses can finally harness the same productivity and innovation gains that were once to preserve of large enterprises.

Starting small delivers fast, measurable wins

Focusing on one or two high impact use cases such as automating workflow or implementing a chatbot will typically show a positive ROI within 3–6 months. In fact, 40% of organisations report seeing a return on their AI investment in under six months, and 92% break even within a year (IDC - The Business Opportunity of AI). Measure those early wins, then scale up based on what works in your business.

Investing in AI now positions you for the next competitive frontier

Over 40 years ago, the internet reshaped every industry, creating winner and losers. AI stand at a similar inflection points, promising to redefine the anatomy of work and information access in ways that will determine which companies thrive or fade (McKinsey & Company).

Focus on augmentation, not replacement

AI is used best at routine tasks, data analysis, and content generation; humans excel at creativity, relationship building, and strategic decision making. The most successful implementations blend AI’s efficiency with human judgment.

How Can SMEs Begin with AI Today?

AI doesn’t have to be overwhelming or expensive. By starting small and targeting areas with clear automation potential, SMEs can unlock real efficiency gains.

Begin with a focused AI implementation in one department where success can be measures, whether that’s deploying a chatbot to elevate your customer service or using AI to generate marketing content. These targeted yet simple pilots not only deliver quick tangible wins but also build the expertise and confidence needed to scale AI across your business.

Ready to Transform Your Business with AI?

Get a free 30-minute consultation to identify where AI can make the biggest impact in your business

Schedule Free Consultation

Get In Touch

Typical response time: Within 24 hours