Understanding the Cyber Security Spend by UK SMEs and AI Landscape for 2025

In the ever-evolving realm of business security and technology adoption, UK small and medium-sized enterprises (SMEs) are incessantly navigating the dual challenges of cyber threats and technological advancements. Thus, understanding cyber security spend by UK SMEs becomes vital. This article delves into the recent findings regarding SMEs’ cyber security expenditure and their cautious approach toward artificial intelligence (AI), providing small business owners with insights to guide their strategic decision-making.

Increasing Cyber Security Investment Among UK SMEs

Survey Overview

The Bionic SME Insights Report, which canvassed the perspectives of 500 small business owners across the UK, explicitly revealed a notable rise in cyber security spend by UK SMEs during 2024:

• 53% of respondents reported an increase in their cyber security budget.
  • 45.4% described the increase as slight.
  • 8% indicated a significant rise.
• 42.4% of the participants reported no increase in spending.

Industry-Specific Trends

Significantly, variations were observed across different sectors:

• IT and Communications: 10% saw a notable rise in investment, with 52% observing moderate increases.
• Health and Social Care and Transport and Logistics sectors showed high levels of increased cyber security spend by UK SMEs.

Misalignment of Perception Vs. Reality in Cyber Threats

Despite increased cyber security spend by UK SMEs, 80% of SME owners believed their businesses weren’t targeted by cyber attacks in 2024. Yet, UK government statistics notably contradict this perception:

• 50% of businesses acknowledged some form of cyber attack in 2024, predominantly phishing attacks.

This discrepancy highlights a prevalent lack of awareness among SMEs about the types of cyber threats they face and underscores the importance of ongoing education for both business owners and employees.

Key Takeaways for SMEs:

• Understand the types of threats: Phishing, the most common form of attack, involves deceptive emails containing malicious links.
• Educate your workforce: Inform staff about identifying cyber threats to prevent breaches.

SME Attitudes Towards AI Adoption

Prospects for AI Integration

The survey also explored SME attitudes towards AI, with 74% of businesses likely to integrate AI into operations by 2025:

• Modest Adoption: 38.6% described their likelihood of AI adoption as moderate.
• Strong Interest: 25% were very likely to adopt, with 10.4% extremely likely.

On the flip side, 19.2% were not considering AI, while 6.8% remained uncertain.

Concerns around AI Implementation

Several apprehensions about AI were highlighted:

• Accuracy Risk (24.8%): Concerns about the reliability of AI-generated results.
• Knowledge Gaps (22.8%): Employees may lack the necessary skills required for effective AI integration.
• Lack of Regulation (19.8%): Potential regulatory challenges pose a significant concern.
• Other concerns included cost-related issues (10.8%) and impact on job roles and customer relationships.

Expert Perspectives

Les Roberts, Senior Content Manager at Bionic, emphasized several inhibitors to AI adoption:

• Privacy and Security Concerns: AI handling sensitive data may expose businesses to data breaches.
• Human Touch: Fear that AI could significantly diminish personalized customer service.
• Resistance to Change: SMEs might resist new technologies if existing processes suffice.

For SMEs, understanding these varied factors can consequently foster more informed and deliberate decisions when considering AI capabilities.

Conclusion

The report indeed highlights the complexity of technological integration for SMEs within an advancing digital economy. While cyber security spend by UK SMEs remains a critical area for investment, the potential of AI beckons amid lingering concerns. SMEs must weigh these opportunities and challenges carefully to harness the full potential of technology in a secure manner.

Resources

For additional insights into cyber security and AI trends for UK SMEs, the following resources are invaluable:

1. “Small businesses face hurdles in embracing AI – Savanta”
   Publication Date: October 24, 2023
   Savanta
2. “Cyber security breaches survey 2025 – GOV.UK”
   Publication Date: April 9, 2025
   GOV.UK
3. “UK SMEs boost cyber security spend but wary over AI adoption”
   Author: Shannon Williams
   Publication Date: May 29, 2025
   SecurityBrief

These resources offer comprehensive data and analyses that can support SMEs in shaping their security and technology strategies effectively.