New research from American Express reveals a growing shift in how UK small business owners seek advice and insight, with many now turning to Artificial Intelligence (AI) in place of traditional peer networks.
The Peer Power study, which surveyed 500 founders and owners of small and medium-sized enterprises (SMEs) across the UK, found that more than a quarter (26%) now seek guidance from Generative AI platforms that they previously would have sourced from fellow business owners. Time pressures (33%) and limited availability of local networking events (22%) are the biggest barriers to this in-person connection, making AI an increasingly attractive and convenient alternative.
However, the findings underline a clear truth for business leaders – human connection remainsa powerful driver of commercial performance, and leadership confidence. Nearly eight in 10 (78%) small business owners say networking has delivered a positive impact on their business, while over four in five (83%) report feeling more confident in their decision-making after speaking with peers. Crucially, 71% agree that a strong network is critical when navigating challenges or moments of crisis.
Despite the rise of AI-driven advice, three-quarters (74%) of respondents plan to expand their in-person professional network over the coming year, and 75% believe networking will become even more important as they pursue growth.
Connectivity and networking have always been a powerful growth driver for small businesses. While Generative AI is an invaluable tool for sourcing information and driving efficiency, it can’t replace the depth of insight and lived experiences that comes from strong peer relationships. For small business owners, building their professional networks should remain a top priority.
– Ruchi Sharma, Vice President, UK Commercial, American Express
The research also highlights the often-overlooked emotional toll of entrepreneurship, with nearly half (48%) of small business owners admitting they don’t have anyone to talk to about business issues. Peer networks play a vital role in addressing this gap, with 38% saying fellow small business owners understand their challenges better than friends or family.
