Two-thirds of small firms using AI now build their own tools, Pax8 finds
Pax8 asked 1,150 leaders in the US, UK, Germany, and Sweden about their AI practices. They found that:
- 35% of firms using AI have discovered shadow AI (tools or workflows running without official approval).
- 67% of businesses that use AI have built at least one AI solution, while 19% are prototyping. Only 13% rely solely on off-the-shelf tools.
- 52% of builders are developing automated workflows integrating AI with other systems, and 46% are building or testing AI agents that complete multi-step tasks autonomously.
- The US leads with 81% of AI-using businesses building their own solutions, followed by Sweden (76%), the UK (54%), and Germany (52%).
Key findings:
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AI Governance and Security: In every market, data security or privacy exposure (30% - 35%) is the primary risk cited for employee-built AI tools. Only 23% in the UK and 45% in Sweden have formal, documented reviews of in-house AI.
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Unexpected Costs: 49% of businesses that paid for AI in the past year encountered bills higher than expected, reaching 65% in Sweden.
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Pricing Preferences: 69% would be more likely to expand AI with outcome-based pricing at a similar cost.
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Data Control: Seven in ten (70%) businesses would pay at least 6% more for greater control over data storage and usage by AI providers, with 81% in the US agreeing.