Small estate agencies, letting businesses and property suppliers could be missing out on AI productivity gains because of concerns over data security, copyright and legal responsibility.
The Federation of Small Businesses (FSB) has called on the new Government to provide clearer safeguards and practical assistance following the appointment of AI Minister Kanishka Narayan to the Cabinet.
Its report, The Confidence Code: The Challenges and Opportunities of AI for Small Firms, found adoption among small businesses had almost tripled since 2023. However, 92% continued to have concerns about using the technology.
For the property sector, those questions are increasingly relevant as agents adopt AI for prospecting, listing descriptions, marketing, customer communications, document processing and transaction management.
PRODUCTIVITY GAINS
Almost six in 10 small firms already using AI reported productivity improvements, while 24% said it had increased revenue.
AI users reported an average revenue uplift of 3%, with the FSB estimating that wider and deeper adoption could contribute more than £42bn to the UK economy annually.
However, 34% said better implementation guidance would encourage them to adopt the technology. Almost a third wanted support to ensure AI was used legally, ethically and responsibly.
The FSB is calling for a government-backed Responsible AI Essentials certification scheme, adoption vouchers and clearer guidance through the AI Skills Hub.
It also wants standardised “model cards” explaining how AI providers use business data and where responsibility lies when systems produce inaccurate or harmful results.
CLEAR ANSWERS
Tina McKenzie (main picture, inset), Policy Chair of the Federation of Small Businesses, says: “The technology is moving at pace, but too many are asking basic questions about data, copyright and liability, and they deserve clear answers.
“The new AI Minister has a real opportunity to make the UK the best place in the world for small firms to adopt AI, but that will only happen if he puts trust at the heart of the Government’s approach.
“That means giving them clear answers on who owns AI-generated content, how their data will be used, and who is responsible when things go wrong.
“If he gets it right, more small firms will embrace AI and that in turn will increase productivity. But if trust is overlooked, the UK risks holding back thousands of businesses that are ready to take the next step.”
