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The UK’s dominant services sector continued its growth streak last month as consumers kept spending on leisure and technology.
Survey data from services companies, known as the purchasing managers’ index (PMI), hit 55.2 in May, down a little from April’s 12-month peak of 55.9 but up slightly from an initial estimate of 55.1 and well above the 50 mark that indicates growth in the sector.
Britain’s services industry, which accounts for almost three quarters of the economy, has motored along despite fears of a broad economic slowdown caused by high inflation and rising borrowing costs. The UK economy is not expected to fall into recession this year but will post only modest rates of growth until 2024.
Business surveys have shown an increasing divergence between different parts of the economy this year, with manufacturing suffering from a prolonged downturn while the service-based industries have benefited from consumers spending more on leisure, travel and tourism after the pandemic.
The survey of purchasing managers found that inflation in the sector rose to the highest since February as companies were facing higher operating costs as a result of rising wages for employees. This in turn led to businesses increasing the cost of their services, a phenomenon which threatens to keep inflation persistently high.
Inflation has already failed to come down in line with expectations this year, partly as a result of companies’ pricing power and still strong wage growth for workers, who want compensation for high inflation. The survey also found that some consumers were pushing back against rising prices by taking their business elsewhere.
Tim Moore, economics director at S&P Global Market Intelligence, which helps to compile the PMI survey, said: “Higher salary payments more than offset lower fuel costs, which meant that overall input price inflation edged up to its strongest for three months in May.”
In signs that the strong labour market may be slowing down, the rate of new jobs in the services industry slowed again last month, despite some businesses still complaining of labour shortages.
The sector was also boosted by strong inbound tourism in the UK at the start of summer and exports strengthened on the back of better economic prospects in the US and Europe. About half of businesses said they expected their activity to grow over the coming year.
John Glen, chief economist at the Chartered Institute of Procurement and Supply, said that rising consumer spending “seemed to be at odds with the continuing cost of living crisis”.
“The service sector was running in the opposite direction to the declining manufacturing sector in the UK, powering ahead with another strong rise in new orders including work from overseas and rising tourist numbers. Optimism was high, with half of all respondents predicting a strong year ahead, keeping positivity close to April’s recent peak,” Glen said.
Equivalent PMI data from the eurozone fell to a three-month low in May, as the continent’s manufacturers dragged down growth with the worst performance since the end of last year. The services sector closely matched the UK, with output at 55.1 in the single currency area, down from 56.2 in April.
In China, the world’s second largest economy, the service sector had its best performance since November 2020 as the country benefits from the end of stringent lockdown measures.
Mirroring the pattern seen in other countries, Chinese consumers are switching their spending from goods to services, helping to boost services even as other industries continue to falter. China’s Caixin measure of PMI in services was up to 57.1 last month, from 56.4 in April.
Read more:
Services sector basks in the warmth of leisure spending

Twitter’s head of trust and safety, Ella Irwin, has resigned from her position at the social media company.
Her departure comes amid ongoing criticism regarding the platform’s approach to content moderation and struggles with advertiser retention following Elon Musk’s acquisition in October.
Irwin, who joined Twitter in June 2022 from Amazon, confirmed her resignation to various news outlets but declined to provide a reason for her decision.
She served for approximately seven months and was responsible for overseeing content moderation and combating disinformation on the platform. Irwin’s internal Slack account appeared to have been deactivated, according to sources and screenshots viewed by Fortune.
Previous Leadership Changes in Trust and Safety
Irwin’s departure marks the second resignation of a head of trust and safety since Elon Musk’s takeover. She replaced the previous head, Yoel Roth, who resigned in November after Musk acquired the company. Roth later wrote in a New York Times op-ed that he chose to leave because it was clear Musk would be unilaterally calling the shots on Twitter’s policies.
Criticism and Challenges Under Musk’s Ownership
Since Elon Musk’s acquisition, Twitter has faced criticism for its lax protections against harmful content. The platform has also struggled with technical challenges, mass layoffs, and an exodus of advertisers wary of appearing next to unsuitable content. An investor in the company recently revealed that its value had dropped by two-thirds since Musk’s takeover.
Content Moderation Controversies
Under Musk’s leadership, Twitter’s approach to content moderation has become looser and more controversial. The platform has experienced significant challenges in stemming offensive and abusive content during Irwin’s tenure. For example, despite Musk stating that fighting child sex abuse material (CSAM) was “Priority #1” for the platform, reporting from NBC News and CNBC found that illegal content was still freely circulating on the platform.
Advertiser Retention Struggles
In addition to content moderation controversies, Twitter has faced challenges in retaining advertisers. Brands have been wary of appearing next to unsuitable content, leading to a decrease in advertising revenue. In response, Musk hired Linda Yaccarino, the former NBCUniversal advertising chief, as Twitter’s new CEO to help address this issue.
Changes at Twitter Since Musk’s Acquisition
Following Elon Musk’s acquisition of Twitter, the company has undergone significant changes, including cost-cutting measures and layoffs. Many employees who worked on efforts to prevent harmful and illegal content, protect election integrity, and surface accurate information on the site were let go.
Community Notes Feature
Musk has promoted a feature called Community Notes, which allows users to add context to tweets as a way to combat misleading information on Twitter. However, the effectiveness of this feature in addressing the platform’s content moderation issues remains to be seen.
Regulatory Scrutiny
Twitter is also facing increasing scrutiny from regulators over its moderation efforts. The company withdrew from a voluntary agreement with the European Union to tackle disinformation, while stating it was committed to complying with upcoming internet rules in the EU. The EU industry chief Thierry Breton warned Twitter that it would not be able to avoid legal obligations in the EU after quitting the voluntary agreement.
Impact on Twitter’s Reputation and Market Value
Ella Irwin’s resignation, coupled with ongoing criticism and challenges, has negatively impacted Twitter’s reputation and market value. Since Musk’s takeover, the company’s value has dropped by two-thirds, according to an investor. The platform’s struggles with content moderation and advertiser retention have further exacerbated this decline.
Looking Forward: Addressing Twitter’s Challenges
With Ella Irwin’s departure and ongoing criticism of Twitter’s policies, the company faces the challenge of addressing these issues while maintaining its commitment to free speech. The hiring of Linda Yaccarino as CEO is a step towards addressing advertiser concerns, but further action will likely be necessary to regain user and advertiser trust.
Potential Changes in Content Moderation
As Twitter faces increasing scrutiny from regulators and the public, the company may need to reevaluate its approach to content moderation. This could involve implementing stricter guidelines, investing in additional personnel, or utilizing new technologies to better detect and remove harmful content.
Rebuilding Trust with Advertisers and Users
In addition to addressing content moderation concerns, Twitter must work to rebuild trust with advertisers and users. This may involve greater transparency regarding policies and decisions, as well as proactive efforts to engage with stakeholders and demonstrate a commitment to addressing their concerns.
Read more:
Twitter’s Head of Trust and Safety, Ella Irwin, Resigns Amid Controversy and Turmoil

Policymakers have a golden opportunity to help small firms make the most of tourism season this summer as the holiday season kicks off, according to the Federation of Small Businesses (FSB.)
The UK’s unparalleled attractions, coupled with favourable exchange rates, will likely attract a wave of international visitors over the next few months – while budget-conscious Brits will be looking to make their money go further with local staycations.
Recent data from the latest Small Business Index (SBI) shows there has been a big rebound in confidence in accommodation and food services, up 53.7 points to -17.8 points.
The fact that it remains in the negative zone highlights the challenges faced by the sector in the aftermath of Covid-19 – with 77% of small tourism and hospitality firms saying they carry some sort of debt, compared to 59% pre-pandemic.
This means the Government and other policymakers must consider urgent ways to alleviate the burden on our tourism industry.
To help, FSB has created a Sunshine List to help lift tourism firms this summer:

Transport needs to run smoothly – and the Government must ensure its Pothole Fund is fairly allocated.
Parking must be accessible on high streets, with tourist hotspots increasing park and ride.
Raising the VAT threshold from £85,000 to £100,000 could spark growth in the hospitality industry, as currently, many tourism firms halt trading near the end of the tax year to avoid hitting the current limit and incurring additional costs.
The Small Business Rates Relief threshold should be increased to £25,000 to remove 200,000 small firms out of the rates system.
Cheaper energy costs – energy firms should adopt FSB’s proposal to allow small firms who negotiated their contract at the height of the energy crisis last year to be able to ‘blend and extend’* their contracts to take advantage of lower, wholesale prices.
Local Visitor Economy Partnerships should come up with plans that are fully reflective of small business interests.

FSB National Chair Martin McTague said: “This summer presents a kaleidoscope of opportunities for small firms in the hospitality and tourism sectors across the UK. There’s a wealth of things to do here – from historical sites to traditional fish and chips by the sea – so it’s no wonder people flock here every summer.
“Long term weather forecasts are notoriously unreliable, but we hope the Met Office’s predictions of a warm summer come true, giving a fillip to small firms that rely on tourists.
“Small firms have already endured the profound impact of the pandemic and overcome numerous obstacles, and now they must navigate high inflation. The improvement in hospitality confidence indicates the first green shoots of recovery, but they need continuous care and support.
“Stimulating our tourism and hospitality sectors with our Sunshine List this summer could make the world of difference, allowing hospitality firms to be the best they can possibly be. In turn, this will mean tourists can properly support our small business ecosystem, helping confidence leap into positive territory.”
Read more:
FSB launches ‘Sunshine List’ of ideas to empower hospitality firms as tourism season kicks off

For the second year running, the top business opportunity for SMEs is the return of clients as the economy stabilises, according to a new report.
One in five SME owners see this as a key opportunity for growth in 2023 – while 20% are looking to introduce new products or services, and 19% expect to acquire new domestic clients.
Increasing revenues through new sales channels, and sticking to new working patterns such as remote or hybrid working, complete the top five business opportunities for 2023, according to the poll of 500 SME owners.
And while a fifth of small business owners in 2022 saw the closure of competitors as something to capitalise on, this has now slid down the list, with just 12% saying the same this year.
Other priorities from 2022 that are less important now include implementing new technology to improve business efficiency.
Responding to the findings, Steven Mooney, Founder and CEO of FundMyPitch said: “Confidence is king when it comes to allowing entrepreneurs reach their full potential, so it’s good to see an uptick in optimism during uncertain times. However, far too many business founders with bright ideas and impressive products lack the financial support they need to scale-up quickly. All too often, getting a credible valuation or even being taken seriously by potential funders remains an elusive prospective, even for those entrepreneurs who have already demonstrated they are building a profitable business.”
“The time has come to get behind Britain’s SME community, unlocking investment opportunities and driving growth with the same enthusiasm we often see in many other countries around the globe,” added Mooney.
Tech expert James Campanini, CEO of VeUP said: “SMEs are the beating heart of the UK economy and it’s encouraging to see market confidence returning despite stubborn inflation and the prospect of further interest rate hikes. However, as ambitious companies continue to roll out new products and services, it’s essential that owners get a grip and improve their IT infrastructure, so they are fully fit for remote working.  Despite many companies prioritising cloud as their top investment this year, far too many SMEs are failing to manage cost optimisation, leading to inefficiencies that could hold back growth.”
Fintech entrepreneur Khalid Talukder, co-founder, DKK Partners said “Britain’s businesses play a crucial role in job creation, productivity and are a major driver of economic growth. It’s encouraging to see optimism for 2023 on the rise as businesses look to invest in new products, services as well as acquiring and expanding overseas. Key to driving SME growth is giving entrepreneurs access to international markets and the latest services to make international payments. This will unlock exponential growth and allow the next generation of companies to reach their full potential as a truly global business.”
The research comes as AXA UK launched its Start Up Angel competition, which is offering two prizes of £25,000 in funding, four £10,000 prizes for digital marketing campaigns, and mentorship with some of Britain’s best entrepreneurs.
Deepak Soni, director of SME business insurance at AXA UK, said: “Challenges provide opportunities, but it’s not always easy to capitalise on them.
“The last few years have been amongst the toughest for small businesses due to the Covid pandemic, so we’re doing our best to support and encourage those who have just set out on their journey.
“The AXA Startup Angel competition, which closes on Sunday, will provide an invaluable boost to a selection of small British startups.”
Read more:
The Road to Recovery: New Poll Shows One in Five SMEs Welcoming Back Clients and Contributing to Economic Stability

Food prices in the UK have soared at their fastest rate for almost 45 years, with grocery prices rising by 19.1% in the year to April.
“I know people are paying more for their bag of potatoes or bag of carrots, but it’s not because we want more money,” said Pembrokeshire potatoe farmer Tessa Elliot .
“Our costs have gone up drastically and we are still trying to understand where we can even make a profit.”
Cash flow is always a challenge for potato farmers, who can wait more than a year to be paid for their crops after harvesting.
But since the Covid-19 pandemic and Russia’s invasion of Ukraine, food production costs have jumped.
“For fertiliser we were paying £290-odd and it shot up to £900 for that same bag,” said Tessa, whose family has run Cresswell Barn Farm for more than 40 years.
“Seeds were up £40 a tonne. Labour costs went up. There was nothing that didn’t go up double, if not more.”
While those costs undermined farmers’ profits, they also translated into higher costs for consumers, with food prices increasing by nearly a fifth between April 2022 and April this year.
The Competitions and Markets Authority is currently investigating all supermarkets over high food and fuel prices amid allegations that customers are overpaying.
But supermarkets insist they are working to keep prices “as low as possible.”
Matthew Hunt runs Filco, an independent chain of supermarkets in Wales, said: “It’s very much a perfect storm at the moment, you’re seeing cost increases coming from all directions – the three major ones are fuel, labour and energy.”
He said his company was not passing on the full cost increases to customers: “It’s squeezing how we operate and we have to look at ourselves and see where we can take costs out of our operations.”
The UK government has floated the idea of a voluntary cap on basic food prices, but that’s had a cold reception from the industry.
“It’s a nice soundbite,” said Matthew. “How it would work in stores is confusing to me.”
Read more:
Breaking Down UK Inflation: The Impact of Rising Food Prices on Farmers

British Airways has been fined $1.1 million by the U.S. Transportation Department (USDOT) for failing to provide timely refunds to passengers for flights to and from the United States during the COVID-19 pandemic.
This penalty aims to serve as a strong deterrent to future unlawful practices by British Airways and other carriers.
Allegations Against British Airways
Since March 2020, the USDOT received over 1,200 complaints alleging that British Airways failed to provide timely refunds to passengers. The airline was accused of not maintaining adequate customer service phone lines, making it challenging for consumers to request refunds for flights that were either cancelled or significantly changed.
According to the USDOT, British Airways’ website instructed customers to contact the carrier via phone to discuss refund options during the period from March to November 2020. However, customers were unable to reach customer service agents when calling the carrier due to inadequate functionality of the phone lines. Additionally, there was no option to submit a refund request through the carrier’s website during this period.
The situation was further exacerbated by misleading information on the airline’s website, which led consumers to inadvertently request travel vouchers instead of refunds.
British Airways’ Response
In response to the allegations, British Airways denied any wrongdoing, stating that it acted lawfully at all times. The airline acknowledged that during the height of the pandemic, customers experienced slightly longer wait times to reach customer service teams due to the closure of some call centers and the cancellation of thousands of flights as a result of government restrictions.
British Airways emphasized that it offered customers the flexibility to rebook travel on different dates or claim refunds if their flights were cancelled. To date, the airline has issued more than five million refunds since the start of the pandemic.
Credit Towards the Penalty
The USDOT has credited British Airways $550,000 toward the penalty, as the airline issued more than $40 million in refunds to customers with nonrefundable tickets in 2020 and 2021. This credit reduces the total amount payable by the airline, but still serves as a reminder of the importance of providing timely refunds to customers.
USDOT’s Actions Against Other Airlines
The British Airways fine is not an isolated case of the USDOT taking action against airlines for delayed refunds. Last month, LATAM Airlines Group was fined $1 million after the airline and its affiliates delayed refunds. The USDOT received more than 750 complaints alleging that LATAM, the largest carrier in Latin America, failed to provide timely refunds for U.S. flights.
In January, the USDOT announced its intention to seek higher penalties for airlines violating consumer protection rules, in an effort to deter future misconduct and prevent such penalties from being viewed as merely a cost of doing business.
The Importance of Timely Refunds
Timely refunds are crucial for maintaining customer trust and satisfaction, particularly during challenging times such as the COVID-19 pandemic. When flights are cancelled or significantly changed, passengers should have access to a straightforward and efficient process for requesting and receiving refunds.
Airlines must ensure that they maintain adequate customer service channels, including phone lines and online platforms, to allow passengers to request refunds without undue difficulty. Providing clear and accurate information on refund options is also essential to prevent confusion and frustration among customers.
The Impact of the Pandemic on Airlines
The COVID-19 pandemic has had a significant impact on the airline industry, with many carriers experiencing financial difficulties due to travel restrictions and reduced demand for flights. In such circumstances, it is understandable that airlines may face challenges in providing timely refunds to customers. However, it is important for carriers to prioritize customer service and support, even during difficult times.
The British Airways case serves as a reminder that airlines must continue to uphold high standards of customer service, despite the challenges presented by the pandemic. By doing so, carriers can maintain customer trust and loyalty, which will be vital for their recovery in the post-pandemic world.
Lessons for Other Carriers
The British Airways fine highlights the importance of airlines maintaining effective customer service channels and providing timely refunds to passengers. Other carriers can learn from this case and take steps to ensure that they are adequately prepared to handle refund requests, particularly in times of crisis.
Airlines should invest in their customer service infrastructure, including phone lines and online platforms, to make it easy for passengers to request refunds when necessary. Additionally, carriers should ensure that their refund policies are clearly communicated and easily accessible to customers, in order to prevent confusion and misunderstandings.
The Future of Air Travel and Customer Service
As the world gradually recovers from the COVID-19 pandemic, the airline industry faces a long road to recovery. To succeed in this new landscape, carriers must prioritize customer service and satisfaction, including providing timely refunds when required.
Airlines that demonstrate a commitment to customer care, transparency, and efficient refund processes will be better positioned to regain customer trust and loyalty, which will be essential for their long-term success. The British Airways case serves as a valuable lesson for all carriers, emphasizing the importance of maintaining high standards of customer service even in the face of unprecedented challenges.
Conclusion
The $1.1 million fine imposed on British Airways by the USDOT underscores the importance of timely refunds and effective customer service in the airline industry. As carriers navigate the post-pandemic world, they must prioritize customer satisfaction and invest in the necessary infrastructure to ensure a smooth refund process for passengers. By doing so, airlines can maintain customer trust and loyalty, which will be crucial for their recovery and long-term success.
Read more:
British Airways fined over $1M for delayed refunds during COVID-19 pandemic

Britain’s major retailers and food manufacturers are increasing their lobbying efforts to postpone significant environmental reforms that will require them to pay for the collection and recycling of household packaging waste from next year.
The proposed “extended producer responsibility” (EPR) scheme, set to launch in April 2024, would require food producers and retailers selling own-brand products to report packaging waste data from January 2023 and pay the full cost of packaging waste disposal from April 2024.
The changes would apply to companies with a turnover of £1m or more, and the funds would be paid to local councils to finance green bin collections.
Industry leaders have used Downing Street crisis talks, following soaring food prices, to caution that the EPR scheme would raise shopping bills further and worsen the cost of living crisis. Supermarket bosses and food manufacturers have reportedly requested ministers to halt the launch of the EPR scheme. Business leaders argue that the scheme would cost at least £1.7bn annually, and the bulk of the cost would be passed on to consumers through higher prices on supermarket shelves.
The government has pledged to introduce such a scheme for years, with Michael Gove as environment secretary first proposing it in 2018. Delays have been attributed to the Covid-19 pandemic, Brexit draining the government’s
Industry bosses have used Downing Street crisis talks arranged in response to soaring food prices to warn that the plans – due to come into effect in April 2024 – would drive up shopping bills further amid the cost of living crisis.
In meetings summoned by Rishi Sunak as food prices rise at the fastest annual rate since the 1970s in the past month, supermarket bosses and food manufacturers are understood to have asked ministers to halt the launch of the “extended producer responsibility” (EPR) scheme.
Under the plans, food producers and retailers that sell own-brand products will be obliged to report packaging waste data from January next year and pay the full cost of packaging waste disposal from April. The changes apply to companies with turnover of £1m or more, and the money would be paid to local councils to help fund green bin collections.
Business leaders argue the scheme will cost at least £1.7bn a year, saying the bulk of the cost would be passed on to consumers through higher prices on the supermarket shelves.
The government has promised such a scheme for years, with Michael Gove as environment secretary first putting it forward in 2018. However, progress has been slow, with delays blamed on the Covid pandemic, Brexit draining the government’s capacity to legislate, and political turmoil leading to a constantly shifting cast of ministerial appointments.
Karen Betts, the chief executive of the Food and Drink Federation, said: “They should consider delaying the EPR to take that cost out of pricing while inflation remains very high. It would seem to us to be a sensible thing to do.
“We’re seeing the government rushing through legislation so they’re not accused of backsliding on environmental commitments. But the result is you have a very muddled, confused scheme which we think won’t work. Not only is it going to cost consumers more, but because it’s not ready it’s even worse.”
The British Retail Consortium has also pushed for the government to “urgently rethink” the recycling reforms. It comes after ministers floated the idea of voluntary price caps for basic food items at the Downing Street talks, prompting a furious response from business bosses and Conservative backbenchers.
Campaigners warned delays would have devastating consequences for the environment, while council leaders said failure to act would mean council tax payers continue to shoulder all recycling costs rather than sharing it with corporations. They argue the scheme will cost less than suggested by industry lobbyists because it discourages wasteful packaging and promotes recycling.
Cllr Linda Taylor, the environment spokesperson for the Local Government Association, said: “Currently taxpayers foot the bill for processing the waste, often dealing with excessive packaging and the challenges of material that is difficult to recycle.
“Councils have been planning for the introduction of EPR in 2024 following previous delays and would be disappointed by another delay creating further uncertainties related to the waste reforms that risk delaying investment.”
Allison Ogden-Newton, the chief executive of Keep Britain Tidy, said: “It’s all very well saying ‘cost of living, and it’s a difficult time to reintroduce EPR’, but at the moment taxpayers are paying for the cost of retrieval for recycling, and the rest is either going to litter or landfill – which is devastating the environment.
“We think it’s overdue and will make a big impact in helping us to clear up.”
However, industry leaders said gaping holes still remained in the government plan almost half a decade after it was first announced. Ministers are yet to outline how changes to standardise kerbside waste collections of household recycling will be made – two years after a consultation on the matter was first launched.
“It’s a shambles to be honest,” said Dick Searle, the chief executive of the Packaging Federation, an industry trade body. “How on earth can we get to work if we don’t know how the people collecting stuff from households are going to be working?
“We’re all on the same page here [on reducing waste], but it just isn’t fit for purpose and the timetables are completely unrealistic.”
A government spokesperson insisted the EPR would be phased in from 2024. “We have been engagingly closely with manufacturers, retailers, and packaging companies on the final design of the scheme and on delivery plans. We will continue to work with these vital groups to help shape future policy.”
Read more:
Food industry lobbying threatens UK household recycling reforms

As AI continues to advance, SMEs in the UK are increasingly seeking ways to harness its power to drive business growth and remain competitive in today’s fast-paced market.
Here, we will explore the numerous benefits of AI for SMEs and how they can leverage advanced digital technologies to achieve operational excellence, improve customer engagement, and gain valuable insights.
The AI Revolution in the Business World
AI refers to the development of machines or systems that can perform tasks that once required human intelligence. As AI technology has become more accessible and affordable, it has begun to play a significant role in the functioning of businesses across various sectors, particularly for SMEs looking to stay competitive and grow in the UK market.
AI and its Impact on SMEs
AI has the potential to bring a myriad of benefits to SMEs, including increased productivity, better customer service, improved logistics, and smarter supply chains. By incorporating AI-powered tools and processes into their daily operations, SMEs can achieve greater efficiency, freeing up employees to focus on more critical tasks and enabling businesses to scale rapidly.
Increased Productivity through Automated Processes
Automating routine, time-consuming tasks with AI can significantly boost productivity for SMEs. For instance, Natural Language Processing (NLP) models like ChatGPT can handle a wide range of customer interactions, from answering basic questions to resolving complex issues. Consequently, employees can dedicate more time to high-value tasks that require creativity and critical thinking.
Productivity Gains through an Augmented Workforce
AI-powered tools can assist employees in performing their jobs more efficiently, resulting in labor productivity improvements that contribute to overall business growth. According to a PwC report, labor productivity improvements are expected to account for over 55% of GDP gains from AI between 2017 and 2030.
Better Customer Service
AI can help SMEs deliver personalized experiences at scale, resulting in enhanced customer satisfaction. By deploying AI-driven chatbots, SMEs can provide self-service options for customers while enabling service representatives to focus on more complex issues.
Better Opportunities for Upselling and Cross-Selling
AI can predict cross-sell and upsell opportunities, surfacing the right recommendations to customers at the right time. This can significantly increase revenue for SMEs and help them stay competitive in the market.Improved Logistics and Smarter Supply Chains
AI can analyze large volumes of data, providing end-to-end visibility and supporting better decision-making in supply chain management. This can help SMEs overcome supply chain difficulties and optimize their operations.
AI Adoption Initiatives for SMEs
Recognizing the immense potential of AI for SMEs, various initiatives have been launched to support their digital technology adoption. For instance, the Hartree National Centre for Digital Innovation (HNCDI) programme has awarded £4.5 million to Cardiff University, Newcastle University, and Ulster University for the establishment of SME engagement hubs. These hubs aim to provide targeted support for SMEs to improve their competitiveness and growth through the adoption of digital technologies, including AI.
Real-Life Examples of SMEs Using AI
SMEs across various sectors are already leveraging AI to enhance their operations and drive business growth. Here are a few real-life examples of how AI is being utilized by SMEs:
Deploying Chatbots for Customer Self-Service
AI-powered chatbots can efficiently handle customer inquiries, allowing businesses to provide quick and accurate responses to their queries. This not only improves customer satisfaction but also frees up service representatives to focus on more complex issues.
Delivering Personalised Recommendations
SMEs can use AI-driven algorithms to analyze customer data and provide personalized product recommendations, similar to the way Netflix, Amazon, and Spotify do. This can lead to more engaging and effective marketing campaigns, ultimately driving sales and customer loyalty.
Improving Products and Processes through Data-Driven Insights
AI can help SMEs optimize their products and services by providing valuable insights based on customer data analysis. For instance, AI can be used in agriculture to maximize yields by identifying optimal planting strategies, nutrient management, and pest control methods.
Tailoring Marketing Campaigns and Communications
AI enables SMEs to deliver tailored marketing communications at scale, replacing the traditional one-size-fits-all approach. By using AI to analyze customer data and preferences, businesses can create highly targeted and relevant marketing messages, resulting in higher conversion rates and increased ROI.
AI Applications across Industries
The benefits of AI for SMEs can be felt across various industries, as businesses increasingly seek ways to leverage advanced digital technologies to improve their operations, engage with customers, and gain valuable insights.
Online Retail
AI plays a crucial role in eCommerce, allowing online retailers to provide personalized recommendations, tailor marketing campaigns, analyze customer reviews, and categorize products efficiently.
Customer Support
AI can significantly enhance the customer service experience by providing self-service options and enabling service representatives to focus on more complex issues. Deploying chatbots and AI-driven tools can help SMEs meet the growing customer service expectations in today’s market.
Logistics
AI can help SMEs manage their logistics by providing better visibility into end-to-end processes and supporting data-backed decision-making. By using AI-driven analytics, businesses can evaluate risks and disruptions in their supply chains and implement strategies to mitigate potential issues.
Embracing AI for a Brighter SME Future
As AI technology continues to advance, SMEs in the UK must embrace its potential to drive business growth and stay competitive in the market. By incorporating AI-powered tools and processes into their operations, SMEs can achieve greater efficiency, improve customer engagement, and gain valuable insights that inform their business decisions. With its ability to understand and respond to natural language and its wide range of potential applications, AI can be a powerful tool for SMEs as they strive to thrive in a rapidly evolving business landscape.
Read more:
How UK SMEs are Using AI to Drive Business Growth and Stay Competitive

A tech start-up launched by TV couple Ferne McCann and Lorri Haines has partnered with private investment platform Seedrs to raise £250,000.
Mental health and wellbeing app Shoorah is set to provide more on-the-go wellness tools than any other wellbeing app. 
The platform has already been downloaded by thousands of users – with 6,000 downloads in the first week alone – and reached the top 10 global Apple download chart within a day of its public launch. 
The simple, low-cost app helps people to take steps to look after their mental health wherever they are, through the many features within the app.
Next month the business will partner with Seedrs to invite the public to own 6-9% of its shares through a fundraising round, with the pre-registration period running from 31May to 7 June. The raise will help support the company’s future growth plans which include the introduction of AI and global expansion. 
The tech start-up has been co-founded by Essex-based media personality Ferne McCann and her fiance Lorri Haines, who have both undertaken their own self-work journeys in recent years. 
Both founders have invested six figure sums in the business to date. Ferne McCann has been a TV personality and presenter for 10 years and both currently star in ITV programme, Ferne McCann: First Time Mum. 
The Shoorah app launched on 18 May, with a waiting list of thousands, and a high-profile London launch event.
Shoorah offers 24/7 access to a series of features which allow users to do online journalling, gratitude practices, programme affirmations to suit them, create new rituals and habits, practice mindfulness, meditate, do breath work exercises and get advice from accredited wellbeing experts in a series of mini-pods.
The business has focused on creating bite-size mental health tools – through a team of wellbeing experts – to benefit even the busiest of people. 
Shoorah CEO Lorri Haines said: “We’re at the start of a very exciting journey and we can’t wait for more people to join and support our mission and our future growth plans through the Seedrs fundraise. We look forward to delivering a new era for wellbeing by offering an affordable, extremely accessible, and very comprehensive app that will make it easier than ever for people to manage their mental wellbeing.”
COO Ferne McCann added: “All of the functions and features on the app have been proven over many years to improve mental health and, as someone who has used them all to turn around my own wellbeing, we know they absolutely work.
“We want to show people that wellbeing tools don’t have to be intimidating, or expensive, or time-consuming. With Shoorah, you can meet all of your wellness needs in a simple, convenient way that fits into your life, whatever you’ve got going on, and wherever you are.”
Both Lorri Haines and Ferne McCann have run previous businesses, covering marketing, nutrition and technology.
Full details of the Seedrs pre-reg can be found here – www.seedrs.com/Shoorah/coming-soon
Read more:
Business co-founded by TV couple Lorri Haines and Ferne McCann to raise £250,000 on Seedrs