Cyber fears stall UK SMEs' digital plans & AI uptake

UK small and medium-sized enterprises are pressing ahead with digital transformation plans for 2026, but a new survey suggests cybersecurity concerns and skills gaps are slowing progress and shaping attitudes to artificial intelligence tools.

Research from ISO certification consultancy platform Be Certified found that 55% of SME owners and managers see digitalising business processes as a key growth priority for 2026. However, 93% said they have concerns about implementing digital changes.

The SME Digitalisation Report is based on a survey of 700 UK SME owners and managers across sectors including retail, IT and education. It examines how firms plan to advance digitalisation over the next year and what they see as the main barriers.

Security worries

Cybersecurity was the most frequently cited obstacle. Two-fifths of respondents (42%) said cybersecurity fears were their biggest roadblock to adopting more digital processes.

These concerns come amid growing attention on cyber incidents in the UK. The National Cyber Security Centre has reported a 50% rise in "highly significant" cyber attack incidents in the past year. Recent high-profile attacks on Jaguar Land Rover and Marks & Spencer have also raised awareness of cyber risk among businesses and consumers.

Many firms also said they are struggling to keep pace with change. Some 41% said they find it difficult to keep up with the rapidly changing digital landscape, while 38% reported significant knowledge gaps in their workforce when using digital tools.

Cost and training capacity also featured. More than a quarter (28%) said limited budgets for digital tools were holding them back, and almost a quarter (24%) said they lack the resources to provide adequate training.

AI hesitation

The findings also point to a cautious approach to AI adoption, with concerns spanning accuracy, workforce impact, knowledge and regulation.

Nearly one in five respondents (19%) said they are concerned about the accuracy of AI tools. Another 18% said they worry about job replacement. A further 15% cited a lack of knowledge to use AI, while the same share (15%) pointed to a lack of regulation around AI software.

Those concerns sit within a broader picture of digital risk management. With cybersecurity the leading barrier, respondents also highlighted internal capability constraints. Together, the results suggest many SMEs view AI as part of a wider set of changes that bring operational and governance challenges.

Agnes Sopel, Lead Auditor and ISO Consultant at Be Certified, said cyber risk requires both technical controls and changes in workforce behaviour.

"Cyber security remains the largest barrier for SMEs in digitalising their operations. As cyber-attacks grow in frequency and sophistication, businesses must ensure they adopt the right security tools to protect their data and processes. For SMEs, it's essential to implement multi-layered security measures in addition to employee training. A cybersecurity framework like ISO 27001 can also help SMEs formalise their security strategy and ensure that their data and systems are protected against emerging threats."

Calls for support

The research also asked SMEs what support they want as they invest in technology. Respondents pointed to government help to ease the financial impact of digitalisation, with several funding options ranking closely.

Grants or subsidies for purchasing digital platforms and software were the most requested, cited by 18% of respondents. Subsidised training programmes drew the same level of demand (18%). Tax incentives for investing in digital tools followed at 17%. Financial support for hiring staff was cited by 15%, while 14% pointed to low-interest financing schemes.

Overall, the results suggest SMEs link funding directly to two persistent constraints highlighted elsewhere in the survey: the cost of new tools and the capacity to train staff.

Consultancy tools

The report also examined attitudes to external support models, including digital consultancy tools. Only 10% of SMEs said they would consider using one.

Be Certified positions digital consultancy tools as an alternative to traditional advisory services, arguing they can reduce the time needed to secure guidance and cost less than hourly or daily consultancy rates.

Over the year ahead, SMEs appear to be balancing digital growth ambitions against a risk environment shaped by cyber incidents and uncertainty over new technologies.