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When you hear the term Artificial Intelligence, immediate thoughts might turn to job displacement and roles being superseded by technology. Once you get past this, you realise AI also brings oodles of positive opportunities for workplaces and employees. It is embedded in the future of the way we work, meaning SME managers have one choice - to understand and embrace AI.
Globally, AI adoption is increasing rapidly in business sectors such as logistics, retail, professional services. Even Government departments are embracing new technologies to gain efficiencies. AI skills development is also on the rise. By 2030, 70% of the skills used in most jobs will change, with AI emerging as a catalyst. To avoid being left behind, North West SME leaders require a good understanding of the current AI landscape and how to use technology and tools for positive impact in the workplace.
In this article, we cover:
The impact of digital evolution on the future of work
Benefits of AI use in the workplace
Uses of AI in workplace communications and guidance on how to use it
The importance of balancing AI with the human touch
Policy and governance around responsible use of AI
What to include in an AI policy
How to get your team excited about AI.
Key facts about AI adoption in the UK workplace
In the UK, AI literacy was the third most in-demand skill requested by hiring employers on LinkedIn in 2025. Despite this, only one in three small businesses are using AI tools in their daily operations.
A 2025 study by United Nations Trade and Development predicts that up to 40% of worldwide jobs will be impacted by artificial intelligence, and that the AI market will grow to a size similar to that of Germany’s economy by 2033.
In the World Economic Forum’s Future of Jobs report 2025, 86% of employers predicted advancements in AI and information processing to transform their business by 2030.
Digital evolution and the future of work
Reflecting on our experience providing outsourced HR support to Manchester, Cheshire and Altrincham businesses, most clients have moved past the initial fear, uncertainty and threat AI poses to human roles. HR and business leaders are taking the lead on the adoption of IT skills and digital tools to improve efficiency and upskill their people.
In sectors like professional services, training is proving to be a critical concern. A shortage of skilled workers available to support with upskilling is limiting adoption of technology. A gender divide is also becoming evident. Research shows that fewer women plan on increasing their AI skills and knowledge compared to men. Of course, not every organisation has access to AI for reasons of size, budget or skills. There also remain questions around ethics and how to properly manage and control the use of AI and its access to data. More on that further on.
The benefits of AI in the workplace
New roles created: The employment possibilities of AI are immense. New roles are being created every day. In fact, machine learning engineers - the people that support implementation, development and maintenance of new technology - are in high demand. Even when tasks are handed over to AI, we still need humans to check for errors, and educate colleagues to support swift adoption. All these roles enable businesses to stay at the cutting edge of their industry.
Automation of repetitive, mundane tasks: In HR, we benefit from AI systems and tools on a daily basis. Repetitive, weekly tasks such as creating staffing rotas, and monitoring holidays and sickness are done at the click of a button. Data analysis is instant, helping with decision-making around strategy and team planning.
If you’re not yet using HR software to manage and analyse people data, it’s time to embrace digital tools. Believe us, HR software is an absolute game changer! Take a look at the HR systems we offer.
Simplifying recruitment and onboarding: processes like sifting through CVs, scanning to identify necessary skills, and automating interview schedules can all be done efficiently using AI. Generative AI is helping recruiting managers to compile interview questions based on the role profile, business goals and values. Technology is also helping to streamline onboarding and induction processes to help new recruits get up to speed quickly.
Automating HR administration can create huge business efficiencies. Learn more about our HR support services.
Using data to improve customer experience: Across a multitude of industries, AI is supporting automation, collaboration, and helping to drive business growth through scaling up operations and improving the customer experience. AI-generated insights provide quality data to support day-to-day operations and help leaders identify strategic opportunities.
Upskilling opportunities: AI isn’t all robots and algorithms. It’s more dependent on people than you might think. Employees need to understand how to implement and use AI safely and effectively. This means that training and development is an essential focus.
Protects against risk: According to PwC, investing in responsible use of AI with robust governance can add value far beyond protecting companies and customers from financial, physical, and reputational damage.
Does AI have a role in workplace communication?
Artificial Intelligence already plays a key role in our everyday communications. It’s been making our lives easier, simplifying tasks, and supporting complex processes for years. Think Zoom, Teams, WhatsApp, Messenger and tools like Grammarly and online translation tools. All these apps make it easier for us to connect and communicate - more so when working remotely. If you’ve ever used auto-correct, you’ve used AI (and probably saved yourself from some embarrassing errors!). It’s not a new concept, but one that’s developing rapidly. At P3, we are genuinely excited about where it might take us next.
We know that, when leaders communicate poorly or infrequently with their team, it affects morale, productivity and retention. Using AI tools can improve and enhance the way leaders communicate, helping to boost morale and increase employee engagement.
Current uses of AI in communication
These are a few of the ways SMEs are currently using AI to aid communication with employees and customers:
Employee surveys collect and analyse feedback, data and sentiment, helping leaders to make informed decisions and spot problems before they arise.
Customer feedback surveys collect valuable suggestions to improve processes and how we communicate with them.
Website chatbots respond to common customer queries 24/7.
HR systems and tools allow employees to self-serve and automate data collection processes such as holiday booking, sickness and absence.
CV scanning software and onboarding tools support recruitment, talent attraction and retention activity, automating repetitive tasks like requests for documentation.
Online webinars and virtual training software have made training more accessible, flexible and interactive.
More ways AI can improve workplace communication
When you consider the volume of tasks AI is already helping us with, it’s worth considering how else it can enhance communication. Here are a few possibilities:
Use listening AI to automate note-taking, e.g. during a disciplinary conversation.
Embrace generative AI, such as ChatGPT, Gemini or Claude, as a valuable research tool to guide your thinking and help formulate new ideas, e.g. writing a report, article or presentation.
Use collaborative tools and shared workspaces to aid cross-team communication and make project working more efficient. Every team member can see and share instant progress updates.
Consider using chat and messaging apps to bring teams together and enhance the social side of work, e.g. to organise and share pictures from team events. Also, be mindful of the risks of misuse!
Ask generative AI for a second opinion. If you’re writing a speech, it could help speed up the writing process.
Balancing AI and human contact
All these examples have one thing in common - they balance using AI with a personal, human approach. AI can take time-consuming communications tasks away from managers, reduce human error and free up resources for other tasks. And if managers are not bogged down in such tasks, they can focus on listening, being present, supportive and aware of what’s going on in their team.
Preparing a script for a formal meeting can be helpful, but communication is a two-way process. For example, in a disciplinary conversation we can learn so much from actively listening to what someone else has to say, seeing things from their perspective and understanding how they feel. Observing body language can also be revealing. AI doesn’t yet have the power to empathise, show genuine interest in others, or to listen intuitively.
Our CIPD-qualified HR Consultants provide expert advice and guidance to help navigate workplace challenges, including disciplinary and grievance support.
Questions to ask before using AI to communicate
Q. What’s the human impact of your message?
A. Use common sense. If you are writing an email to an employee about a sensitive issue, it’s probably not wise to ask ChatGPT to draft it for you.
Q. Is the channel suitable for the purpose/message?
A. Take care to choose the right communications channel. There is always a risk that people will interpret a text message or email very differently to a face-to-face conversation.
Q. Are human emotions and feelings involved?
A. A personal, face-to-face conversation is always the best option when tackling sensitive subjects.
Q. Is the subject confidential?
A. It’s not possible to ask an app to sign a Non-disclosure Agreement, so unless you can rely on the safety and confidentiality of the tools you are using, think twice before exposing private conversations to AI tools.
Policy and governance around responsible use of AI at work
To protect against cyber crime and ensure data security, it’s vital that SMEs have a clear policy around the use of AI at work. Without proper controls and governance in place, you are exposing your business to unnecessary risk. Concerns around threats to cybersecurity, data privacy and protecting personal data are valid. Teams need direction to know how to use it safely. Line managers must be fully aware of the restrictions and feel confident to guide and challenge their teams on correct usage.
What to include in an AI Policy
We recommend reviewing your digital policies to provide up-to-date AI guidance. Include as a minimum:
Acceptable and unacceptable uses of AI
Systems that can and cannot be used
Guidelines for using AI responsibly
Data protection and privacy
Consequences of misuse.
How to get your team excited about AI
Position AI as an enabler and a tool to make our lives easier. Automated software can carry out mundane tasks and free up creative minds for exciting projects.
Use performance conversations to explain and explore the learning opportunities. AI creates openings for continuous learning, to upskill, develop and grow your people.
Appoint an enthusiastic AI Champion in each team or department. This is a good way to get people feeling comfortable and optimistic about the possibilities and generate ideas around how to use AI.
Turn AI adoption into a fun activity. Set challenges and tasks to get the whole team involved. Create a set of actions to pursue.
Consider the training and reskilling gaps in your team and identify individual learning requirements.
Monitor how your competitors are embracing AI, so you don’t get left behind.
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