A large number of small and medium-sized enterprises in the United Kingdom are not properly controlling the use of artificial intelligence inside their companies.

Tech website TechRadar reported on Oct. 14 that 24 percent of UK SMEs said they had identified unapproved AI tools being used within their organisations over the past six months.

The core problem is a gap between the speed of AI adoption and management systems. A survey by business software distributor Pax8 showed UK companies are adopting AI quickly, but governance and cost-control systems are failing to keep pace. Only 23 percent of UK SMEs had procedures to review internally built AI in line with official documentation. Germany was higher at 32 percent and the United States at 36 percent.

Weaknesses also emerged in AI cost management. Some 39 percent of UK SMEs said they had been billed more for AI usage fees than expected. Only 12 percent had set an AI-only budget, and 19 percent could not distinguish AI spending from other technology spending. That suggests many companies do not fully understand actual usage and how costs are incurred.

The pattern also appeared when assessing return on investment. Only 16 percent of UK SMEs said they were confident they could calculate ROI for AI. Sweden stood at 45 percent, while the UK was at about one-third of that level.

Adoption rates themselves also differed from major markets. Some 54 percent of UK SMEs were developing their own AI. The United States was much higher at 81 percent. Pressure to adopt AI is growing, but that is also the backdrop for concerns that UK companies could rush implementation before setting basic operating principles.

Pax8 placed more emphasis on the role of providers than on corporate demand. It said software companies and IT service providers need to offer users greater visibility and security, governance controls and tools for cost management.

Ultimately, the AI challenge for UK SMEs is less about expanding adoption than about building management systems. With unapproved tool use, weak budget controls and low visibility into ROI appearing at the same time, the role of software companies and IT service firms that emphasise security and cost-management functions is expected to grow in the market.