Calls to make AI training for new skills tax deductible

With many SMEs seeing the value of upskilling in AI, findings show that some are being held back by a lack of expertise.

Research, compiled by the Federation of Small Businesses (FSB) shows that:

• 20% of firms use AI.
• 29% avoid it because they feel ‘ill-equipped’ to do so.
• 27% of those who currently use AI, plan to invest in further training for their staff.
• 43% plan to undertake a course themselves to improve their knowledge over the next two years.

As a result of these findings, the FSB is calling on the government to make training for new skills tax deductible for the self-employed.

FSB National Chair Martin McTague, said, “AI has the ability to streamline administrative processes and bring a host of business benefits. It can also enhance customer services, predict future trends, and spot supply chain risks. This can save entrepreneurs precious time that they can invest elsewhere.

“Indeed, our research shows small firms are excited about its potential. However, as AI technologies advance at a rapid clip, some remain hesitant to join the digital wave because they are limited by a lack of relevant skills.

“Allowing tax-deductions for the self-employed in a wider array of training – such in AI – can help people adapt. With 4.1million self-employed people in the UK, it’s time we remove this counterproductive barrier to lifelong learning.”

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