Only three in 10 UK small businesses are currently using AI, with concerns over its energy and resource demands emerging as a barrier to wider adoption.
Research from Novuna Business Finance found 27% of small businesses have no plans to adopt the technology and 21% do not consider it relevant to their operations.
Among businesses that have not adopted AI, 22% said they were concerned about the energy and natural resources required by the technology.
Sustainability concerns were highest among organisations in the West Midlands, where 36% raised concerns, followed by Scotland at 31% and the East Midlands at 28%.
Media businesses were the most concerned sector at 43%, followed by education at 33% and transport and distribution at 28%.
The findings come as small businesses continue to report a focus on sustainability. The research found 31% consider sustainability central to their business culture and planning, while 38% are taking practical steps to improve their environmental performance this year.
Measures include improving packaging, waste and recycling policies, creating local jobs, investing in energy-efficient equipment and sustainable infrastructure, and reviewing energy use across business premises.
The research also suggests employment concerns may be influencing attitudes towards AI. Among businesses that do not currently use the technology, 59% said their enterprises were built around the importance of strong human relationships.
The findings highlight a potential challenge for businesses seeking to balance the productivity benefits of AI with concerns over energy consumption, resource use and wider sustainability impacts.
As AI adoption grows, its electricity demand has become an increasingly important consideration for organisations assessing the technology’s environmental footprint.
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