Could solo entrepreneurs fall behind on AI?

Solo entrepreneurship is a growing force in the UK economy. Non-employing businesses have increased by 25% since 2010, while almost a fifth of digital microbusinesses now turn over more than £100,000 a year (GOV.UK and Enterprise Nation). Yet running a business alone remains demanding, and artificial intelligence is not solving the problems founders rank highest.

FOUNDRS and Werksy surveyed 50 independent founders and freelancers and interviewed four in depth. The findings suggest that AI is delivering genuine productivity gains, but narrow adoption could leave solo entrepreneurs behind better-resourced competitors.

AI improves productivity for small businesses

The productivity case is strong. Research led by professor Ross Brown at the University of St Andrews, based on interviews with nearly 10,000 businesses, found productivity gains of between 27% and 133% among UK SMEs using AI tools (Business Matters).

An independent fashion designer and content creator in our research described the benefit plainly: “A one-hour task can be whittled down to about a five-minute task. I can focus on making more during the day.”

AI is missing founders’ hardest problems

However, every founder interviewed said solo entrepreneurship remained difficult. One summed it up: “You’ve got to be tough-skinned.” Survey respondents most often cited marketing and finding customers, followed by finance and tax, maintaining motivation and energy, legal and administrative requirements, and a lack of community and colleagues.

Only six of the 50 respondents used AI for financial planning or administration, even though finance and tax ranked second among their challenges. One founder said: “There’s so much change in the HMRC regulations at the moment and so many emails coming through. I don’t know what I’m supposed to do.” AI can help users understand information, but regulated decisions still require current, authoritative guidance and professional judgement.

Shallow AI adoption creates a competitive risk

More than 80% of respondents used ChatGPT or a similar general-purpose tool, while fewer than 15% used a tool built for a specific task. A general-purpose large language model can support research and drafting, but it is not designed to identify every compliance obligation for a first-time company owner. It may not surface a requirement the user does not know to ask about.

Depth matters as much as the number of tools. As one founder admitted: “Nobody taught me how to use it. There are definitely limitations there.” Official data points to a wider adoption gap: 28% of businesses with zero to nine employees report using at least one AI technology, compared with 49% of businesses with 250 or more employees (ONS).

How solo entrepreneurs can use AI more effectively

Solo entrepreneurs still have an advantage: they can test and change processes quickly. Larger organisations may invest more, but only one in 10 successfully scales AI to create sustained value, according to Accenture research cited by Ivee.

The practical response is not to collect tools indiscriminately. Founders should start with one costly, repetitive task, test a suitable tool, check its output and measure the time or quality gained. They should then deepen what works, protect confidential data and use qualified advice for legal, tax or financial decisions.

AI will not remove the toughness required to build a business alone. But founders who experiment with clear problems, reliable safeguards and measurable outcomes can turn their speed into an advantage before larger competitors close the gap.

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