SPOTLIGHT ON:
AI
AI is the chief catalyst for confidence and progress in UK tech
Our survey showed AI is a key reason for confidence, the driving force behind changing workforce dynamics, and at the heart of both new product development and operational improvements.
We surveyed 65 UK AI companies. And 82% of those businesses are confident they will grow under the current government.
Even before the Technology Prosperity Deal promised to supercharge its AI infrastructure, the UK was already an AI leader. As of 2024, the UK had over 5,800 AI companies and a workforce of 86,000 employees. A record £2.9bn was invested in British AI companies and AI contributed £11.8bn to the economy in 2024.
There is a fairly even split between companies leveraging AI primarily in operational processes (35%), in product development (31%) or in both (34%).
AI contributed £11.8bn to the economy in 2024
How businesses are currently leveraging AI
If the UK wants to be a global leader in AI, UK AI businesses believe incentives to encourage financial investment, more skilled workforce immigration and more government funding are essential.
of companies are using AI
What businesses see as critical for UK’s AI leadership
Our view
UK tech companies know that using AI for efficiency and automation will only take them so far. To unlock rapid, sustainable growth, AI will need to transform business models and bring products and services to market in new, innovative ways.
Ensuring the UK tech workforce is motivated and has the needed skills will be a huge focus for UK business leaders. Keeping a finger on the pulse of global regulation as it evolves will also be crucial to make sure AI efforts don’t fall foul of rules in other locations.
The UK government is desperate for growth but needs to play its part. It should take steps to remove regulatory red tape, encourage investment and ease barriers to skilled immigration.
