The Welsh Government’s recent £2.1 million programme to help small and medium-sized businesses adopt artificial intelligence has been widely welcomed.
For many firms across Wales, particularly outside the main city centres, it offers a chance to modernise operations, improve efficiency and remain competitive. AI tools can streamline customer service, automate routine tasks and help businesses make better use of their data.
But there is a quieter issue that risks being overlooked.
Small and medium-sized enterprises dominate the Welsh economy. According to Welsh Government figures, SMEs account for more than 99% of all businesses in Wales, with micro businesses making up the vast majority of firms operating across the country.
If even a small proportion of those businesses are digitally underprepared, the wider economic impact could be significant.
AI Cannot Fix a Confusing Website
There is a growing assumption that artificial intelligence can solve most digital challenges. In reality, these systems rely on clear, organised information to function properly.
Increasingly, people are not just scrolling through pages of search results. They are receiving summarised answers generated by AI-powered tools. Those systems scan publicly available information to understand what a business does and whether it is relevant.
If a website does not clearly explain a company’s services, location and expertise, AI systems may struggle to interpret it accurately. In some cases, they may overlook it altogether.
Pontypridd-based digital consultancy Ffaith Marketing, which works with SMEs across Wales, says it is seeing a consistent pattern. Businesses are enthusiastic about adopting AI tools, yet many still rely on websites built for an earlier phase of the internet.
The surrounding technology has evolved rapidly, but the structure of their online presence often has not.
AI Adoption Is Rising Fast
At the same time, interest in AI among smaller businesses is accelerating. Research from the British Chambers of Commerce suggests around 35% of SMEs are already using AI tools, with many more experimenting with them in areas such as customer service, administration and marketing.
This rapid uptake makes digital readiness even more important.
If businesses are investing in automation but their core websites remain unclear or outdated, the benefits of those tools may be limited. AI systems still need clear information about what a business does and who it serves.
No amount of software behind the scenes can compensate for a public-facing presence that lacks clarity.
The Risk of Digital Invisibility
For Welsh SMEs, online visibility is not simply about attracting visitors. It influences credibility, perception and commercial opportunity.
When potential customers or partners look up a business, they expect to find clear and trustworthy information. If modern search tools cannot easily interpret that information, competitors with clearer digital structures may be prioritised instead.
This matters even more when considering the scale of the SME economy. Across the UK, there are around 5.7 million SMEs, representing nearly 99.8% of all businesses.
Competition for visibility is intense.
According to Ffaith Marketing, businesses with clear service pages, straightforward language and well-organised websites are far more likely to benefit from new AI-driven search tools. Without those basics in place, firms risk investing in innovation while remaining difficult to find.
A Foundation Problem, Not a Technology Problem
For years, many small businesses have treated their websites as static brochures. Built once, refreshed occasionally and left largely untouched.
But the way people discover businesses online has changed.
Websites now need to load quickly, work properly on mobile devices and present information in a clear, logical way. Services should be described in straightforward language. Locations should be easy to identify. Contact details should be obvious.
These are not cutting-edge innovations. They are fundamentals.
Yet across Wales, there are still firms investing in new AI systems while their websites struggle to clearly explain what they do. In that scenario, AI adoption risks becoming an extra layer placed on top of weak foundations.
Ambition Must Be Matched by Readiness
The £2.1 million AI support programme signals ambition. Wales does not intend to fall behind as technology evolves.
That ambition is welcome. But long-term economic benefit will depend not only on adopting AI tools, but on strengthening the digital foundations that support them.
Artificial intelligence can amplify a business that is already clear and well organised. It cannot rescue one that remains digitally unclear.
As Welsh SMEs embrace the promise of AI, ensuring their digital foundations are fit for purpose may prove just as decisive in determining who truly benefits from this next phase of technological change.
