Research shows traditional sectors lag in AI adoption as UK launches first level 4 AI and automation apprenticeship
26 January 2026 
While interest in artificial intelligence across UK businesses is at an all-time high, adoption remains uneven and slow-moving for many small and medium-sized enterprises (SMEs).
Research into AI and automation use shows that while up to 70% of UK businesses are either using or actively considering AI, take-up is heavily concentrated in knowledge-intensive sectors such as IT, communications, professional services, finance, and health and life sciences.
More traditional industries – including transport, construction, manufacturing and agriculture – continue to lag behind.
The challenge is not a lack of ambition. Studies consistently show that SMEs want to adopt AI but face significant barriers. The most commonly cited obstacle is difficulty identifying practical use cases (39%), followed by cost concerns (21%) and a lack of internal AI skills and expertise (16%).
For smaller firms in particular, understanding how AI applies to their business, accessing affordable solutions, and finding hands-on implementation support remain major challenges. Nearly half of UK microbusinesses say they do not expect to use AI at all, and only around 12% of SMEs have invested in formal AI training to date.
The Coders Guild, a leading provider of digital skills training, apprenticeships and software development bootcamps, has worked with Skills England and the Department for Education to author the UK’s first Level 4 AI and Automation Apprenticeship Standard. The new standard marks a major milestone in building a future-ready workforce equipped to harness the power of artificial intelligence in practical, commercially valuable ways.
As the pace of AI adoption accelerates, this new apprenticeship will give SMEs access to the critical AI and automation skills needed to compete, innovate, and future-proof their organisations – particularly in sectors that have so far struggled to move beyond experimentation.
The 18-month apprenticeship equips learners to identify, implement and manage responsible AI and automation projects and is available to both employers and learners. Apprentices will develop the skills needed to spot real-world opportunities, deploy AI tools safely and ethically, and embed automation strategies that deliver measurable business impact.
Recent research commissioned by The Coders Guild shows that 68% of SMEs want access to more affordable AI solutions, while 51% say they need hands-on support to implement AI effectively. Yet the majority continue to lack in-house capability, with 52% citing skills shortages as a key barrier to adoption.
The findings also show that IT, communications, finance and health and life sciences are leading AI adoption, while transport, construction and manufacturing continue to lag behind, reinforcing the need for targeted, accessible skills development rather than one-size-fits-all innovation programmes.
A Step Change for Traditional Businesses
Crispin Read, Founder of The Coders Guild, said: “Our findings show that nearly half of UK microbusinesses say they don’t expect to use AI at all. As a small business leader who’s seen real gains in efficiency and profitability from AI, that’s deeply concerning. The gap between what’s possible and what most SMEs are experiencing is significant.”
He added: “This apprenticeship is about giving SMEs the confidence and capability to adopt AI in a way that genuinely delivers value. For many businesses, especially in traditional industries, AI still feels complex, risky or out of reach. With the right training, you can put someone in your team who not only understands how to use AI effectively, but can also support and upskill colleagues across the business.”
“The result is greater efficiency, time savings and smarter use of data – freeing people up to focus on higher-value work. Most importantly, it future-proofs businesses. AI is moving fast, and SMEs cannot afford to be left behind. This programme creates in-house leaders who can drive sustainable change.”
The new apprenticeship will directly address the barriers holding back adoption, enabling businesses to train staff who can lead on identifying opportunities, deploying practical AI tools, and embedding automation strategies across their organisations.
UK SMEs interested in the apprenticeship can now pre-apply here:
https://thecodersguild.org.uk/apprenticeship/ai-automation-level-4-apprenticeship/
Data Sources:
Office for National Statistics
British Chambers of Commerce
Small Business Britain
Innovate UK / BridgeAI
Institute for Public Policy Research
The Coders Guild Research, 2025