The government has outlined its first steps for implementing the recommendations of the SME Digital Adoption Taskforce, signalling the start of a longer-term programme to increase digital and AI adoption among UK small and medium-sized enterprises (SMEs).
Published by the Department for Business and Trade (DBT), the update sets out progress against each of the taskforce’s 10 recommendations, covering work on a new public-private initiative, AI-powered business support, regional pilot programmes and improvements to the evidence base for future policy.
The industry-led taskforce was established in 2024 to identify practical ways of helping SMEs adopt productivity-enhancing digital technologies. In its final report, it set out an ambition to make UK SMEs “the most digitally capable and AI-confident in the G7 by 2035.”
Public-private initiative begins to take shape
The update reveals that ministers have already begun work on the taskforce’s first recommendation by bringing together government and industry to develop a new collaborative approach to digital adoption.
“We agreed on the need to co-create a new public-private initiative,” it states.
According to DBT, the initiative will bring together government, technology providers and business organisations to accelerate digital and AI adoption among SMEs, while aligning activity with wider government priorities around economic growth and AI.
The department also said it has “taken the following actions to meet this recommendation”, indicating that implementation work is already under way across a number of the taskforce’s proposals.
AI-powered business support under development
Among the more ambitious proposals is the development of an online “Chief Technology Officer as a Service”, designed to provide SMEs with trusted, AI-powered guidance when making technology decisions.
While still at an early stage, the proposal aims to make specialist digital advice available to businesses that lack dedicated IT leadership or technical expertise.
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Alongside this, the government said its continuing to develop the Business Growth Service, which is intended to provide businesses with easier access to advice on digital adoption alongside wider support on finance, exporting and skills.
The update also highlights work to improve signposting to existing digital support programmes, helping smaller firms identify the services already available to them.
Government turns to regional pilots
The government also plans to test new approaches through regional pilot programmes.
According to the update, these pilots will explore different ways of encouraging digital adoption across sectors and locations, while building a stronger evidence base on which interventions deliver the greatest improvements in productivity.
The department says it will continue working with local partners to understand the barriers preventing SMEs from investing in digital technologies and AI, with lessons informing future national policy.
Alongside the pilots, the government intends to strengthen the data available on SME digital adoption and continue exploring options for improving access to finance for technology investment.
Building the foundations for digital adoption
The update also points to wider government work that supports SME digital transformation, including progress on electronic invoicing, digital identity and the continued digitisation of business tax administration.
Rather than standalone initiatives, the department is presenting the reforms as part of a broader programme designed to make it easier for businesses to adopt digital ways of working.
“We have already taken a number of actions” to implement the taskforce’s recommendations, the update states, adding that government will continue working with businesses and technology partners to increase digital and AI adoption across the UK’s SME community.
