MSPs
SMART TECH, SMARTER ALLIANCES
AI adoption among small and mid-sized enterprises (SMEs) is accelerating, but
turning investment into real business impact remains a challenge. Michael Jakob, CTO at Luware, explores how strategic partnerships can help SMEs bridge the gap between potential and performance, unlocking practical value from AI without overextending internal resources.
A 48 | September/October 2025
s AI moves from buzzword to boardroom strategy, SMEs across the UK are finding themselves at a critical
juncture. Tey’ve invested in powerful platforms like Microsoſt Copilot and Azure AI, oſten bundled with tools they already use daily, such as Microsoſt 365. But while the technology promises greater productivity, efficiency and smarter customer service, many SMEs are facing a now-familiar dilemma: they have the tools but aren’t seeing the transformation. SMEs can unlock the full value of Microsoſt’s AI ecosystem - not by throwing more technology at the problem, but by activating what they already have through smarter partnerships, tailored integrations, and the right strategic support.
The SME AI paradox According to research from the University of St. Andrews, AI could boost productivity by up to 133% across UK SMEs. Many are turning to familiar names like Microsoſt to gain a competitive edge. Tools such as Microsoſt 365 Copilot is now widely available and offers intuitive AI integration for tasks like summarising emails, draſting documents or enhancing productivity workflows. Yet, only a small portion of businesses are
realising meaningful returns on these tools. Studies show that just 9–20% of UK SMEs have achieved full-scale AI integration. Many license the tools but use them sparingly, or not at all. For many SMEs, AI adoption stalls because of operational roadblocks. Copilot might be
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