UK falling behind in AI adoption, warns Google Europe chief

The UK risks losing ground in the global race to harness artificial intelligence, with small businesses in particular falling behind their American counterparts, according to Debbie Weinstein, President of Google Europe.

Weinstein, who previously led Google’s UK and Ireland operations, said that while Britain remains an innovation hub, its small and medium-sized enterprises (SMEs) are slower to adopt AI — a gap that could limit productivity growth and wider economic gains.

“The biggest gap in terms of productivity-led growth is with the US,” Weinstein said. “If you look at what’s driven the US relative to the UK over the last ten years, a lot of the unlock that is missing in this country comes down to productivity.”

Research from Google suggests that AI-powered tools could increase productivity among UK SMEs by up to 20%, effectively giving employees an extra working day each week.

The company’s analysis estimates that AI adoption could unlock £200 billion in additional economic value for UK small businesses by the end of the decade.

SME leaders surveyed by Google believe the technology could boost revenues by an average of 30%, with the greatest benefits expected in customer service automation, marketing, and administrative tasks.

“Small and medium-sized businesses are really the lifeblood of the UK economy,” Weinstein said. “Whenever you talk to a small business owner they always tell you the one thing they struggle with is time.”

But she warned that businesses that fail to adapt risk being left behind.

“My biggest worry is that there’s this potential for growth — for each of these individual small businesses and for the economy overall — that isn’t realised because people don’t have the tools or the skills to take advantage of this opportunity.”

To help close the adoption gap, Google has launched the AI Works for Business programme in partnership with the Department for Business & Trade and NatWest.

The initiative will deliver a series of free in-person workshops across Manchester, Leeds, Edinburgh and Cardiff over the next two months. Around 1,000 small business owners have already registered.

Peter Kyle, Secretary of State for Business and Trade, said the collaboration would help small firms gain vital practical skills.

“AI is transforming the way we work,” Kyle said. “This partnership with Google will give small businesses hands-on experience of how to capitalise on the many benefits of AI to innovate, grow, and compete on the global stage.”

Weinstein added that the workshops build on pilot programmes run earlier this year, where short training sessions significantly increased AI use among participants.

“What we found in those trainings is that a few hours of hands-on experience made all the difference,” she said. “When we did a couple of hours of training and went back, there was a doubling of the daily usage of AI.”

Google introduced Gemini, its generative AI chatbot, into its suite of productivity apps in February 2024, giving businesses access to AI-driven writing, data analysis and planning tools directly through Google Workspace.

However, while large corporations have integrated AI rapidly into operations, smaller firms have been slower to follow — often due to lack of awareness, cost barriers, or uncertainty about regulation.

Weinstein’s comments add to a growing debate over how Britain can close its AI productivity gap. Economists warn that while the technology could transform efficiency across industries, the benefits will only be realised if businesses adopt early and invest in digital skills.

“This isn’t about hype,” Weinstein said. “It’s about ensuring that small businesses — which make up the backbone of the UK economy — have the opportunity, confidence and support to use AI to their advantage.”