UK SMEs see unchecked reliance on AI as top risk, study finds
One-third of UK small and medium-sized enterprises (SMEs) consider unchecked human reliance on artificial intelligence (AI) to be the greatest risk associated with its implementation, according to new research from cloud services provider Six Degrees.
The findings, published in the 'Data and AI Insights for SMEs Report 2025', indicate that 33% of SMEs rank the deference to AI without proper checks and balances above concerns such as exposing sensitive data (32%) or enabling new attack vectors for cybercriminals (29%).
The report suggests that while AI promises significant benefits for operational efficiency and competitive advantage, a lack of oversight and proper understanding could undermine its potential and introduce new vulnerabilities. Six Degrees advocates for organisations to take a holistic and coordinated approach to managing AI risk, stressing the importance of oversight, continuous education, and the development of ethical guidelines.
Risk of unchecked use
"Without introducing AI in a deliberate and planned way, you risk assuming your AI systems know everything and work exactly how you want them to. You also risk not knowing where the platform is pulling data from, how much sensitive or personal data it has access to, and which data sets need to be restricted to certain employees or removed entirely."
According to Vince DeLuca, Chief Executive Officer at Six Degrees, organisations that embrace AI without robust governance may inadvertently grant the technology undue authority over critical decisions or processes, raising concerns around transparency and accountability.
DeLuca added, "I believe AI is an underpinning fabric that will enhance performance and efficiency and drive innovation and competitive advantage. It's a platform that can benefit every part of an organisation by making intelligent decisions and also help shed some of the manual processes that weigh us down. But it's vital that all AI users, regardless of their seniority within the organisation, understand how the technology operates and forms its conclusions, and that they have the confidence to question and challenge AI outputs."
Low adoption of risk mitigation
The whitepaper finds that only one in five SMEs has taken proactive steps to address the risks associated with AI use. This low adoption is attributed both to a shortage of internal expertise and the absence of centralised AI strategies. As a result, many SMEs may lack the capability to implement or enforce necessary procedures for the ethical and secure deployment of AI systems.
Six Degrees recommends that SMEs incorporate an AI risk framework, particularly in regulated sectors, to maintain accountability in AI-driven decisions. Measures could include establishing explainability policies to ensure AI decisions are auditable, adopting a Zero Trust security model to restrict data access, and maintaining compliance with privacy regulations such as GDPR and HIPAA. Additional recommendations include implementing regular security audits and continuous AI monitoring to detect vulnerabilities and ensure ongoing reliability.
Expert support recommended
"AI has the potential to transform how SMEs operate, but only if it's implemented with rigour and clear accountability. The right technology partner can fast-track adoption, de-risk the journey, and ensure alignment across the organisation. For SMEs lacking in-depth in-house expertise, engaging a specialist third party enables the creation of a secure and scalable roadmap that meets both business objectives and evolving regulatory expectations. This includes support for ISO 42001 certification and embedding ethical guardrails, transparency, and governance into every stage of AI deployment."
Tony Healy, Chief Information and Technology Officer at Six Degrees, notes that the right external support can play a crucial role for SMEs that may not have the internal capacity to develop or manage comprehensive AI strategies. By collaborating with specialist partners, SMEs can accelerate safe adoption and meet both business and regulatory demands.
The Six Degrees report highlights the need for UK SMEs to focus not only on technological adoption but also on the establishment of effective oversight, education, and accountability frameworks to ensure the responsible and secure implementation of AI.
