According to Simply Business, 47% of UK small businesses now use AI tools, up from 22% in 2025. Only 19% say they are very confident using it day to day. If you are preparing a Start Up Loan application, that gap is the part to notice.
01What did the research find?
Simply Business published its 2026 SME Insights Report on 8 September. It surveyed 1,842 UK small business owners between 30 July and 7 August 2026.
AI use has more than doubled in a year. A further 13% plan to start using it within the next six to 12 months.
What are owners using it for? Creating content is the most common use, at 63% of those using AI. Problem solving comes next at 53%, then generating ideas at 50%. For 46%, it saves time on admin.
What holds the rest back? Security and privacy concerns top the list at 44%. Another 39% do not see a clear use for it, and 36% worry about accuracy. Nearly one in three owners say they do not understand how to use AI, or are wary of bringing it into their work.
02Why does small business AI adoption matter for a Start Up Loan application?
Because a business plan is written content, and a cash flow forecast is a problem to solve. Those are the two jobs owners hand to AI most often.
According to the Start Up Loans Company, both documents must be submitted with an application, alongside a personal survival budget. A business adviser then checks three things. They are your credit history, whether you can afford the repayments, and whether the business is viable.
AI can draft the words. It cannot know your customers, your prices or your costs. The Start Up Loans Company's own guidance says AI tools can produce content that is written confidently but is factually inaccurate. It tells applicants to review everything an AI tool writes.
An adviser will not object to you using AI. The problem comes when a plan is full of borrowed numbers and you cannot explain them.
03What should you do before you apply?
Do the research first, in the real world. Write your numbers down before you open any tool. Then use AI to shape the words around facts you already have, and read the whole plan back out loud.
Our guide on whether AI can write a business plan for a Start Up Loan sets out the five jobs AI does well and the four it cannot do for you.
bizbritain is a Start Up Loans Business Support Partner. That means we help you get the plan and the forecast right before you apply, and we do not make the lending decision. If you are applying for a Start Up Loan and are not sure your plan is ready, that is the conversation to have first.
