SMEs and AI: 'What I learnt from speed dates with founders'

In just 15-minute conversations with over eight SMEs, a clear picture emerged. Founders are excited, curious and worried about AI. They don't know where to start!

In May, my team took part in Enterprise Nation’s inaugural business speed networking event in London. Think of it as rapid-fire idea exchange – eight or more 15-minute conversations with SME founders, one after another. No slides. No pitches. Just real business owners sharing real challenges, ambitions and increasingly, questions about AI.

And a pattern emerged.

From the baker in Bermondsey to the digital marketing agency in Birmingham, the message was clear. Small business leaders are excited about AI. They’re also confused, cautious and – in many cases – frozen in place.

They’re worried about being left behind, unsure what to do next and unaware of the practical (and hidden) costs that come with jumping on the AI bandwagon. As CTO at Puritan AI, my job is not just to build scalable, AI-driven systems – it’s to ensure business leaders understand what AI really is, what it can do and when it’s worth doing.

It’s time we separate signal from noise. So, let’s unpack the key themes I heard – and what they mean for SMEs trying to navigate this rapidly evolving landscape.

1. AI FOMO is real, but it's also dangerous

There’s a growing sense of anxiety among SMEs that they should be doing something – anything – with AI. But this urgency often isn’t matched with clarity.

One founder told me:

“I know I should be using AI… but I don’t even know what that something is.”

This sentiment is everywhere – and it’s understandable. The headlines are overwhelming. "AI will replace your job.”, “AI will make you millions overnight.”, “You’ll be obsolete without it.” It creates an environment of fear and haste, not strategic action.

But here’s the reality: AI isn’t magic. Like email or smartphones, it’s a powerful enabler – but it doesn’t transform your business overnight. It’s not the technology itself that adds value; it’s how, why, and where you apply it.

Don’t let FOMO drive your decisions. Let your business needs do that.

2. Most SMEs think AI = ChatGPT (and that’s a problem)

One of the most common assumptions I heard is that AI simply means ChatGPT. And therefore, AI is just a tool for writing LinkedIn posts or editing blogs.

Now, let me be clear: generative AI for content creation is useful, but that’s just one tiny corner of what’s possible.

Take our own work at Puritan AI, we’ve built intelligent AI agents that answer customer enquiries autonomously, even while our clients sleep. If you operate in global markets across time zones, this is game-changing. You no longer need to staff teams 24/7. AI does the heavy lifting, scaling your service without adding headcount.

There are countless other examples:

• Automating scheduling and admin workflows

• Generating dynamic pricing models

• Providing personalised customer journeys

• Real-time analytics dashboards driven by AI

• Fraud detection in payments or booking systems

The key takeaway: AI should not be treated as a one-size-fits-all content tool. It should be seen as an intelligent co-pilot — one that solves real business problems.

And that’s the crux. Don’t start with the tool. Start with the problem. The best AI deployments are rooted in operational pain points – inefficiencies, bottlenecks, repetitive tasks – where human time and creativity are being wasted.

3. Will AI steal my data? – a valid, growing concern

A surprising number of SME owners raised concerns about data security and privacy.

“I’d love to use AI to improve our internal processes or customer service… but what if it leaks sensitive client data?”

This anxiety is valid, and it points to a deeper issue. Many SMEs are being asked to trust AI before they even understand how it works. That’s unfair and it’s dangerous.

Here’s the truth: to get value from AI, you will need to provide it with data. Your processes, documents, customer interactions – even your voice or face, in some cases. And that can feel intrusive.

So the question is not, should I trust AI?, it is, how can I manage AI safely?

That’s why education and governance matter.

At Puritan AI, we never ask clients to upload sensitive data to a black box. We educate them on how their data is used, where it’s stored and how to set clear guardrails. For UK SMEs, I also recommend investing in Cyber Essentials – a government-backed scheme that costs around £400 and comes with basic cyber security certification and up to £20,000 in cyber insurance.

Think of it as a digital hygiene check-up – essential if you’re putting any kind of automation into your workflows.

The bottom line is AI’s risks aren’t just technical, they’re reputational, operational and increasingly, legal.

4. AI has hidden costs, especially for time-strapped founders

One thing that’s rarely talked about is how time-consuming it can be to get AI working.

Even something as simple as writing effective prompts for tools like ChatGPT requires trial, error and iteration. Prompt engineering isn’t just a buzzword, it’s a skill and SMEs don’t have prompt engineers lying around.

The time cost is real and so is the learning curve. For many founders, every hour spent on training AI is an hour taken away from running the business. So what should SMEs do?

• Start small and choose one task that’s repetitive, low-risk and measurable

• Choose partners carefully and don’t just buy AI in a box. Work with people who understand your sector

• Measure everything. Don’t invest more time or money until you’ve proven ROI on the first test case

Final thoughts: What SMEs actually need from AI

The future of AI isn’t about replacing SMEs, it’s about augmenting them, helping founders do more with less, without burning out. But this only works if we cut through the hype and get honest about what AI is, what it’s not and where it fits. For some, that will mean adopting AI chatbots or automation tools. For others, it might mean waiting and that’s okay too.

Real digital transformation doesn’t start with software. It starts with strategy.

So if you're an SME leader feeling uncertain about AI, here’s my advice: You're not behind. You're just at the beginning and you're not alone.

Let’s focus on building understanding before automation, and progress will follow.

Relevant resources

• A small business owner's guide to using AI tools

• Free GPT prompts for businesses

• How small businesses can leverage AI