AI is turning up on the customer's side of the counter. 54% of South East mid-market firms say AI shows up mainly in margins, but just over seven in ten feel pressure to deliver more for the same price.
What the South East figures show
Research from FRP Advisory, reported on Wednesday 7 October, found 54% of South East mid-market firms said AI efficiencies had mainly shown up in improved margins, against 44% nationally. But just over seven in ten said AI had increased pressure to provide more for the same price; 54% reported demand for shorter delivery times and 46% expectations of lower prices or better value.
A quarter said AI gains had been offset by rising costs elsewhere. FRP partner Phil Harris said "what is seen as a competitive advantage today quickly becomes the minimum standard of what customers expect tomorrow." The research also says lenders are increasingly looking at a borrower's AI readiness when assessing credit risk.
How to read the sample
This is a mid-market survey, not a micro-business sample. The figures are regional for the South East, with one national comparison on margins.
Coverage context
In the South East mid-market sample, AI is showing up in margins for a majority — and in customer pressure to pass those gains on for just over seven in ten.
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