In the second quarter of 2024, only 3.2 percent of small and medium-sized enterprises allocated funds to AI services. By the second quarter of 2026, that figure reached 12.8 percent. While the mean spend climbed from £93 to £288 per business, these figures are heavily skewed by a small cohort of heavy users. The median spend sits at just £75.60, with AI services accounting for a mere 0.1 percent of total transaction value processed by the lender.
The Trillion-Dollar Disconnect in the AI Infrastructure Bet
While tech visionaries like Elon Musk predict total labor displacement, the reality on the ground paints a different picture. Data from SME lender Capital on Tap reveals that despite rapid adoption among small businesses, actual expenditure on artificial intelligence remains a rounding error in the wider UK economy.
Extrapolating these patterns suggests the total UK market for AI services hovers around £4 billion annually—a fraction of the scale required to justify the industry's trajectory. Global estimates place total AI spending between £100 billion and £150 billion, a figure that pales in comparison to the projected $1 trillion in infrastructure investment planned by major tech firms. Investors are increasingly questioning how this massive capital expenditure, much of it debt-funded, will eventually be recouped. While business adoption is growing, it remains orders of magnitude away from the level needed to validate the current wave of infrastructure spending.
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