AI-Powered CRM for UK Small Businesses (2026)
CRM is being revolutionised by AI. The old model was paying £75/user/month for Salesforce and then manually entering data. AI-powered CRMs now auto-capture interactions, predict deal outcomes, draft follow-up emails, and score leads automatically. Most small businesses paying for enterprise CRM are paying for features AI handles in cheaper tools.
Penny's take
Start free. HubSpot's free CRM with AI features handles contacts, deals, email drafting, and basic pipeline prediction. Most businesses under 50 clients don't need more. Only upgrade when AI can't handle your specific needs — not when a salesperson sells you features AI already provides for free.
From my notebook
“A PR consultancy was paying £375/month for Salesforce (£75/user, 5 users), using 10% of the features. AI was doing none of the work — everything was manual. We migrated to HubSpot Free with AI-powered email drafting, deal prediction, and auto-logging. Two sales-focused team members got Pipedrive (£15/user). Total: £30/month. Better pipeline visibility because AI handled the data entry humans were skipping.”
“The average SME uses less than 20% of their CRM's available features, yet pays for the full suite.”
— Capterra UK CRM Usage Study, 2024
What affects the cost — and can AI replace it?
- •Number of users
- •AI features (lead scoring, email drafting, predictions)
- •Integration requirements
- •Data storage limits
- •Contract length
What Penny says
Penny reviews whether your CRM costs match what AI-powered alternatives provide free. Many businesses on Salesforce (£75+/user/month) could achieve the same results with HubSpot Free or Pipedrive (£15/user) — with AI handling data entry, email drafting, and pipeline management automatically.
Ask Penny about AI alternatives →Frequently asked questions
Can AI replace a CRM?
AI doesn't replace the CRM concept — it transforms it. AI-powered CRMs auto-capture interactions, draft follow-up emails, predict deal outcomes, and score leads. The best AI CRMs (HubSpot, Pipedrive) are cheaper than legacy platforms and require less manual data entry.
Do I actually need a CRM?
If you have more than 50 active customer relationships or a sales team of 2+, yes. Below that, a well-structured spreadsheet works. The signal you need a CRM: losing track of leads or forgetting follow-ups. AI CRMs solve this by automating reminders and logging interactions.