Better connectivity and AI prioritised in Digital Revolution report

British Chambers of Commerce has recommended that the Government appoints AI champions to help small and medium-sized businesses make the most of the new technology

The Government should do more to ensure broadband services are available in lower-income areas and help small and medium-sized enterprises make the most of artificial intelligence, according to a new report.

The Digital Revolution report from the British Chambers of Commerce (BCC) recommends the introduction of governmentappointed AI champions for SMEs to help them improve their use of the new technology, as well as collaboration between government and the insurance industry to create a reinsurance pool underwriting cyber risk for business.

The report, one of a series of five BCC papers on the future of the UK economy, also urges the strengthening of wireless network infrastructure through a policy framework favouring investment, supported by a planning regime that could help unlock the UK’s 5G potential.

BCC President and Business Council Chair Martha Lane Fox said:

“The pace of technological change is speeding up, not slowing down. That’s a fantastic opportunity for business. Our report calls on the next government to put energy into the further modernisation and digitisation of the UK. Not just for the few but, for everyone.

“We need rocket boosters under high-speed broadband rollout. A fast, reliable and affordable connection is now fundamental for every company. They also need support to deal with cyber security which is both a daunting prospect and a pressing risk for companies.

“We need a sustained commitment from all politicians to make sure that the UK – through its amazing businesses – keeps pace in the fast-moving digital world.”

Digital Revolution Challenge Group Chair Priya Guha MBE added: “Our report focuses on four related areas – broadband, wireless connectivity, cyber security and AI. Every company now needs to be digital, and these four areas are the foundations for competitive and productive businesses. And they are also areas where the Government can play an important role in helping firms.

“Without the basics of fast broadband, connectivity on the move and cyber risk protection, businesses won’t even be equipped to start exploring how they can benefit from the exciting world of AI. The ever-changing world of technology is of huge strategic importance to business. Both for their own future, and the future of an innovative economy in the UK where all companies thrive.”

The report features a foreword from Lord Hague, who focuses on the “global race to develop and deploy artificial intelligence”, warning that “the businesses that move fastest to adopt this technology will thrive”, and that businesses that fail to do so will not only put their future prosperity at risk, but also their defences against cyber-attacks. Elsewhere in the report, it was noted that the UK was the most digitally attacked country in Europe during 2022, accounting for 43 per cent of cases.

Despite this, analysis by the BCC found that 70 per cent of businesses weren’t using AI, with most of those not planning to use the technology at all. Some 48 per cent of companies said they had no plans to use AI, while 22 per cent said they were not using it yet but intended to adopt it in due course. As of August 2023, 27 per cent of business-to-business services firms were using an AI chatbot technology such as ChatGPT. There was disagreement over the potential impact of AI on jobs, with most respondent businesses saying either that AI would have no net impact on jobs or that it was too soon to say.

On broadband and wireless connectivity, the BCC found an imbalance between urban and rural businesses, with 56 per cent of rural businesses reporting reliable broadband – much lower than the 82 per cent for those in urban areas. The paper suggests that weak digital infrastructure might make the UK less attractive to foreign investment and limit growth in underserved areas, and urges improvements to ensure Britain does not continue to fall behind its competitors.

The report calls for the development by the early 2030s of a 5G system that can be seen as “genuinely world-leading and setting the standards for what 6G technology will look like”.