UK SME AI Spending Grows Fast but Remains Tiny Compared to Retail Giants

While industry figures project massive long-term automation and widespread workforce changes, actual card spending data shows that AI services account for just 0.1 per cent of total transaction volume across small and medium-sized enterprises.

Capital on Tap SME Data Reveals Slow AI Uptake

According to Capital on Tap, which tracks spending patterns across tens of billions of pounds in annual transactions, only 3.2 per cent of small businesses spent money on AI services during the second quarter of 2024. By the second quarter of 2026, that adoption rate quadrupled to reach 12.8 per cent of SMEs. Over the same two-year window, the mean average spend among those using AI increased from £93 to £288 per small business.

However, the median average spend for the second quarter of 2026 sits significantly lower at £75.60. Capital on Tap notes that the mean figure is heavily skewed by a small group of high-spending firms in the 99th percentile, who averaged £3,159 each on AI services.

Comparing Micro-Level Spend to Macro-Level Infrastructure Bets

When extrapolated across the wider economy, the current transaction patterns place total UK SME spending on AI services at roughly £4bn per year, according to Capital on Tap’s figures. That total represents less than a tenth of Tesco’s annual turnover. The data broadly aligns with broader global estimates that place annual worldwide AI spending between £100bn and £150bn.

These figures stand in sharp contrast to the financial commitments made by major technology infrastructure providers. Global tech firms are expected to spend nearly $1 trillion on infrastructure in 2026, with even higher outlays slated for the following year, frequently funded through debt.

For those infrastructure bets to yield returns, business spending on AI would need to scale up by orders of magnitude. While adoption among UK small businesses is growing, the current pace of transactional growth leaves investors questioning how the massive capital expenditures will eventually balance out.