With £22 billion in infrastructure investment and new AI regulation on the horizon, UK SMEs face both opportunity and responsibility. This issue maps out what’s changing, what’s available and what to prepare for next!
The National Picture
UK SMEs are being invited into the AI infrastructure conversation, with major investments and roadshows focused on practical business impact.
Overview
- Expect cheaper cloud, faster tools and locally compliant hosting.
- Upskill and invest now. AI is delivering measurable gains.
- Faster, more accessible AI services for UK SMEs.
Microsoft is investing £22 billion to upgrade UK AI infrastructure, including a new supercomputer. Early pilots show faster turnaround for marketers and NHS teams, with reduced admin and improved efficiency.
Google’s Gemini tools are touring the UK with NatWest and DBT, showing how AI can boost SME productivity by 20%.
UK startup Nscale has secured 200,000 NVIDIA GPUs (graphics processing unit: a chip that speeds up AI by handling complex calculations fast). This deal boosts UK AI compute capacity for business use.
“New AI-enabled automation platforms for UK SMEs can now be implemented for £25–£49 per user per month, down 80-90% from previous years.” – Jake Holmes, Founder & CEO of Grow Fast
The Takeaway🚀
Start with what’s already available. Microsoft’s infrastructure upgrade means cheaper, faster AI tools hosted in the UK. Google’s SME tour offers direct training and proof of ROI. And Nscale’s GPU deal makes enterprise-grade compute more accessible. If you’re a UK business leader, this is the moment to trial AI tools with local support, attend a roadshow, or test a productivity use case.
UK AI Policy Update⚖️
Overview:
The UK government is rolling out new support structures and preparing light-touch regulation to help businesses adopt AI without the heavy compliance burdens seen elsewhere.
AI Growth Lab Launched🧪
The UK government has opened regulatory sandboxes where businesses can test AI in real-world conditions with expert supervision. This means you can trial AI solutions with reduced compliance risk and direct regulatory guidance, particularly valuable if you’re in healthcare, transport or manufacturing
Your move: Check if your sector qualifies for sandbox testing. Check out GOV.UK’s AI Growth Lab to see application criteria and upcoming pilot opportunities.
AI Opportunities Action Plan📈
The government’s new plan commits to expanding AI Growth Zones across the UK through 2030, plus targeted skills funding and support for both public sector and high-growth private companies. Translation: more local infrastructure, training programmes and potential grants coming your way.
Your move: Bookmark the AI Opportunities Action Plan and sign up for Innovate UK alerts to catch funding announcements and regional Growth Zone launches as they’re confirmed.
Light-Touch Regulation on the Horizon ⚖️
Parliament is considering a central AI Authority designed to balance innovation with safeguards, explicitly aiming to avoid the heavy compliance burdens seen in the US and EU. Updates on the proposed bill are expected before December, but the direction is clear – regulation that won’t strangle UK businesses.
Your move: If you’re already using AI tools, keep basic records of what you’re using and how: data sources, customer impact, vendor compliance. You’ll be ahead when formal guidance arrives!
Quick Review: Microsoft Copilot Studio🧠
Microsoft Copilot Studio is a no-code AI agent builder designed to help SMEs automate everyday tasks with ease. It’s built into the Microsoft 365 ecosystem and includes GPT-5 integration, making it a powerful tool for teams already using Office apps.
Key Takeaways:
- Value & Features: Copilot Studio lets you build custom AI agents without writing code. It’s ideal for automating HR queries, service requests and internal workflows. The GPT-5 integration means agents can understand and respond in natural language.
- Impact on Your Business: You can set up task-specific agents in minutes, reducing admin time and improving response speed. It’s especially useful for SMEs looking to streamline operations without hiring developers.
- Price Point: Included in existing Microsoft 365 licences for UK users. No extra cost if you’re already using the Office suite.
If your team runs on Microsoft 365, Copilot Studio is a fast track to smarter, automated support.
Events & Opportunities
Upcoming Events & Conferences📅
- Maximising AI and Data in Small Businesses 📊
- Date: 5 November 2025
- Location: Leicester
- Cost: Free Hosted by De Montfort University and partners, this event focuses on practical steps for data and AI adoption in small businesses.
- AI Works for Business – Google/DBT 🧠
- Date: 13 November 2025
- Location: Cardiff
- Cost: Free A hands-on workshop series designed to help SMEs explore AI tools with support from Google and the Department for Business and Trade.
- Tech and the City – AI in Financial Services💼
- Date: 18 November 2025
- Location: London
- Cost: Free for members
- Explore regulatory issues and business-ready AI in the financial services sector.
- International Conference on AI & Machine Learning 🧪
- Date: 17–18 November 2025
- Location: London
- Cost: From £90 A research-led conference covering deep learning, AI ethics and emerging technologies, with CPD accreditation available.
- AI in Business Conference London 🏢
- Date: 20 November 2025
- Location: London
- Cost: From £58.80 A business-focused event offering real-world AI case studies and peer-led sessions tailored to SME strategy.
Training & Skills Development 🎓
- AI Summit London (2026) ⚙️
- Date: June 2026
- Location: London
- Cost: Free Expo Pass (expected); paid tiers likely from £200+ The UK’s largest commercial AI expo, featuring product showcases, strategic panels and networking across sectors.
What’s Next? 💡
Automate an Expense Approval Workflow
Automating expense approvals is a quick win for saving time and reducing admin. A basic flow can save small teams £50–£100+ in weekly effort—with just 45 minutes of setup.
The example below uses Microsoft 365’s Power Automate, but the same logic applies across tools like Zapier, Make or Slack workflows.
Here’s how a typical expense approval flow works:
- Open your automation platform and search for templates like “Expense request approval” or “Start an approval when a new item is added.”
- Define the Trigger and Action:
- IF a new expense report is submitted (via Microsoft Forms, Google Sheets, or a finance app) (The Trigger)
- THEN send an approval request to the relevant manager (via Outlook, Teams, Slack, or email) (The Action)
- Link your workflow to your team’s communication channel so approvals and confirmations are sent automatically.
- Run a test to check the flow end to end.
- Once it works, publish and monitor in real use.
Once built, you’ll spot other approval tasks—like purchase requests or travel claims—that can be automated just as easily! 🔎