AI for Small Businesses: Lessons from the UK’s Copilot Trial
AI tools like ChatGPT, Gemini and Microsoft Copilot are everywhere in the headlines. They promise faster work, fewer headaches and a new era of productivity. But as the UK government’s recent Microsoft 365 Copilot trial shows, the reality is more complicated—especially for small businesses trying to figure out where AI fits.
The key lesson? Start with the problem, not the tool.
The Promise of Copilot
The government trial, which ran across several departments, found that employees saved around 25 minutes a day when using Copilot for routine tasks. Drafting emails, summarising documents and pulling together reports all got quicker.
Feedback was also strongly positive. Around 70–80% of participants said they’d prefer to keep using Copilot rather than go back to old workflows. Neurodiverse colleagues and non-native English speakers reported particularly strong benefits, as AI reduced some of the friction of everyday communication.
For small businesses, that sounds appealing. Saving half an hour a day could be the difference between closing a sale and chasing paperwork.
The Reality Check
But the trial also surfaced problems that every SME should note:
Inconsistent productivity gains – For creative, complex or accuracy-critical work, Copilot didn’t help much. In fact, some users found it slowed them down.
Extra verification needed – Drafts often needed heavy corrections. The time saved up front was lost again in editing.
No clear impact at scale – While individuals felt more efficient, at a departmental level the trial found no measurable productivity improvement once review and training were factored in.
In other words, AI delivered value—but not everywhere, and not automatically.
Why ‘Problem First’ Matters
This trial highlights a classic product principle: don’t start with the solution, start with the problem.
Too many businesses are rolling out AI because it feels like the “next big thing.” But without clear use cases, you risk:
Adding complexity instead of removing it.
Creating compliance risks, especially around GDPR and data security.
Wasting effort on tools that don’t fit the task.
A smarter approach looks like this:
Define the problem — Where are the real pain points? Is it admin-heavy tasks, customer queries, compliance documentation?
Start small — Apply AI to low-risk, high-volume areas first.
Train your team — Make sure staff know when an AI output is a draft and when it can be trusted.
Iterate and scale — Review what worked, refine the process, then expand.
This is the same mindset that good product teams use to build successful features—and it works just as well for AI adoption.
What This Means for Small Businesses
At LaunchLayer, we’ve worked with local businesses who are excited about AI but quickly hit barriers:
Staff unsure how or when to use it.
Drafts that look good at first but miss key details.
Tools adopted without considering GDPR or data security implications.
The solution isn’t to avoid AI—it’s to adopt it cautiously and with intent. By mapping out your business problems first, you can choose the right tools and get the benefits without the frustration.
Final Thought
AI isn’t here to replace human judgment. It’s here to amplify it.
The companies that thrive with AI won’t be those who adopt tools the fastest, but those who use them with clarity, training and the right problem in mind.
If you’re considering how AI tools like Copilot or ChatGPT could help your business, start with your challenges first—and if you want a partner to guide you through that process, LaunchLayer can help.
