New research by Pax8 has criticised UK businesses for building AI faster than governance can keep up, with a quarter (24%) of SMBs having discovered unauthorised AI tools operating within the business in the past six months.

Two in five (39%) have also experienced unexpectedly high AI bills, implying that the visibility across their AI consumption isn’t sufficient.

But with the pressure to adopt AI at an all-time high, UK businesses could continue to be rushed into rash decisions without thinking out the fundamentals first.

Even though shadow AI is apparently widespread, just one in four (23%) UK businesses have a formal, documented review process for internally built AI, compared with around a third in Germany (32%) and the US (36%).

In light of that, only around half (54%) of UK SMBs are developing their own AI, putting them way behind the likes of the US (81%).

British businesses are also struggling on the cost management front, with a tiny 12% having dedicated AI budgets. A further 19% couldn’t even distinguish AI spend from other tech spend, leaving just 16% of UK SMBs confident in their abilities to determine AI’s ROI – around a third of the number of businesses in Sweden (45%) that feel confident in doing so.

Looking ahead, security concerns remain the most cited barrier to adoption, but Pax8 frames the current state of AI adoption as a major opportunity for software vendors and IT service providers. Rather than creating an action point for businesses, who are the consumers in this instance, the report implies that the providers have a greater responsibility to reassure their users with additional visibility, security and governance controls, and cost management options.

“These findings highlight the importance of trusted businesses that can help SMBs bring agents, workflows, data and tools together as a connected intelligence layer,” said EMEA CEO Harald Nuij.