Among UK-based businesses, AI adoption has become a key strategy to maintain competitiveness. A new report published by Lloyds Business Barometer reveals the impact of this technology on the business world and companies’ future plans. For many years, concerns about AI causing unemployment have been widespread in the public sphere. However, the data proves that companies see this technology as a critical tool for workforce productivity and growth.

Investments and Skills Shortage

According to the research results, 54% of businesses in the UK say that AI is creating new job opportunities within their organizations. This situation shows that technology is seen not only as a tool for automation, but also as an element that supports employment.

The proportion of companies allocating a larger budget is also noteworthy. 26% of firms expect to spend between £100,000 and £250,000 on AI skills next year.

Despite the investment appetite, 31% of businesses acknowledge that their current workforce does not yet possess the necessary AI skills. To close this skills gap, 43% of firms are initiating formal AI training programs, while 32% are expanding existing training programs.

Significant changes are also evident in recruitment processes. 24% of companies prioritize AI skills when hiring new employees, while 21% are creating entirely AI-focused new roles.

Differences Between Large and Small Firms

61% of firms in the UK state that they are already using AI in some way. However, this usage rate varies sharply depending on the size and field of activity of the company.

18% of businesses see cost as the biggest obstacle, while data quality and skill access are other major obstacles, each at 17%. For firms operating only domestically, cost is the biggest obstacle at 23%, while international firms prioritize data quality at 19%.

The adoption rate of artificial intelligence in large businesses with annual turnovers exceeding £10 million reaches 79 percent. This rate is significantly ahead of smaller competitors focused solely on the local market.

Almost two-thirds of large firms state that their current employees possess the required AI skills. 74 percent of large firms using AI cite increased productivity as the main reason for their future investment decisions.

Approximately 60 percent of businesses believe that companies that do not adopt AI risk falling behind their Competitors within a few years. This perception of competitive value is 73 percent in large firms, while it remains at 54 percent in the smallest businesses.

Amanda Murphy, CEO of Lloyds Business and Commercial Banking, emphasizes that artificial intelligence has a transformative potential as great as the internet. Murphy states that success depends more on building internal skills and trust than on purchasing new technology.

Do you think artificial intelligence technologies are sufficient to create a lasting competitive advantage in the business world, or will human skills always remain paramount?

Investments by companies in the UK in the adaptation of artificial intelligence and workforce skills are accelerating to gain a competitive advantage.