Statistics

UK Business AI Readiness 2025

How many UK businesses are using AI, which sectors lead, where the skills gaps are, and how the UK compares to the US, Germany, France and China. Data from government, ONS, and industry research.

How many UK businesses are actually using AI

Multiple surveys from 2024 and 2025 give overlapping figures. The range is 16-25% depending on how the question is asked and what counts as "using AI." The consistent finding across all sources is that the majority of UK businesses are not yet using AI in any meaningful way.

16%
Of UK businesses currently use AI (DSIT, 2025)
The government's own AI Adoption Research surveyed 3,500 businesses. 5% plan to adopt. 80% neither use nor plan to adopt AI. 51% say AI is simply not relevant to their organisation.
GOV.UK / DSIT AI Adoption Research, 2025 (fieldwork Feb-May 2025)
25%
Of UK businesses using AI (BCC / Pertemps, 2024)
British Chambers of Commerce / Pertemps Employment Trends Report. 43% had no plans to adopt (down from 48% the previous year). 42% believe AI will increase overall productivity.
British Chambers of Commerce / Pertemps, July 2024
9%
Of UK firms adopted AI in 2023 (ONS)
From the ONS Management and Expectations Survey of ~55,000 businesses. Projected to rise to 22% in 2024. The ONS sample is the largest and most statistically robust of the available sources.
ONS Management and Expectations Survey, March 2025 (fieldwork Nov 2023-Mar 2024)
31%
Of UK SMEs currently use AI-powered tools (YouGov, Aug 2025)
YouGov poll of 1,000 SME decision-makers (businesses up to 250 employees). 15% plan to adopt. 86% are familiar with AI but the majority are not yet using it.
YouGov / B2B Omnibus, August 2025

Among businesses that do use AI: 80% use it at least weekly. 53% use it constantly. But only 21% of AI-using businesses have more than half their staff using the technology. Most are using AI in isolated pockets rather than across the organisation.

What they use it for: Marketing (72%), administration (72%), and IT (64%) are the top uses. Operations (53%) and sales (49%) lag behind. (DSIT, 2025)

The gap between large businesses and SMEs

36%
Of large UK businesses (250+ employees) use AI
Large businesses are more than twice as likely to be using AI as micro businesses. Access to budget, dedicated IT resource, and in-house expertise drives the gap.
DSIT AI Adoption Research, 2025
23%
Of mid-sized UK businesses use AI
Mid-sized businesses sit between large and micro in adoption. They often have more capacity than micro businesses but less dedicated resource than large enterprises.
DSIT AI Adoption Research, 2025
14%
Of micro UK businesses use AI
The smallest businesses have the lowest adoption rate despite being the segment where time savings could have the most proportional impact.
DSIT AI Adoption Research, 2025
2x
More likely to have increased turnover with high digital capability
Small businesses with the highest online capabilities are almost twice as likely to have increased turnover in the previous 12 months compared to those with low capability. (Lloyds Bank / Gov.UK, 2024)
Lloyds Bank Business Digital Index, cited in GOV.UK SME Digital Adoption Taskforce, 2024

Which industries are ahead and which are behind

AI adoption is not evenly distributed across UK industries. Tech, media, and professional services lead. Construction, transport, retail, and hospitality trail significantly.

SME sector breakdown (YouGov, August 2025)

IT and telecoms
56%
Highest sector for SME AI adoption
Media and marketing
53%
Content and campaign automation driving adoption
Business services
23%
DSIT figure for the broader category
Finance and real estate
21%
DSIT 2025
Hospitality and leisure
18%
YouGov SME poll, 2025
Retail
14%
DSIT 2025
Construction
12%
88% have no adoption plans (DSIT 2025)
Transport and storage
10-15%
DSIT 2025 / YouGov 2025
Real estate (SMEs)
11%
Lowest sector in YouGov SME data

Manufacturing: Only 36% of UK manufacturers use AI in operations. 75% plan to increase AI investment in the next year. But only 16% describe themselves as knowledgeable about AI, and 44% cite systems integration as a key barrier. Ambition is high; capability is not. (Make UK, Future Factories Powered by AI)

How the UK compares globally

The UK ranks well on government AI readiness but lags the US significantly on private investment and lags on business adoption compared to expectations given its tech sector strength.

Government AI Readiness Index (Oxford Insights, 2024)

CountryGlobal RankNotes
USA1stLeads on innovation infrastructure and private investment
Singapore2ndStrong regulatory environment and digital infrastructure
South Korea3rdHigh AI research output and government strategy
France4thStrong national AI strategy and public investment
UK5thStrong AI sector growth; private investment trails the US significantly
Germany8thIndustrial AI strength but slower regulatory environment

Private AI investment 2024 (Stanford HAI AI Index)

CountryPrivate AI Investment 2024vs US
USA$109.1 billionBaseline
China$9.3 billion12x less
UK$4.5 billion24x less
Germany~$2-3 billion~40x less
France~$2-3 billion~40x less

The investment gap is large. The UK's government AI readiness ranking (5th globally) reflects policy environment and infrastructure. The private investment figures show that UK businesses are investing at a fraction of US rates. Cumulative UK private AI investment from 2013-2024 was approximately $28 billion. The US invested $470 billion over the same period.

5,862
UK AI companies in 2024 (up from 3,713 in 2023)
A 58% increase in one year. UK AI sector revenue jumped 68%, from £14.2 billion in 2023 to £23.9 billion in 2024. The sector is growing but concentrated in a small number of companies.
DSIT AI Sector Study 2024
27%
Of all UK venture capital in 2024 went to AI firms
The highest share on record. $4.3 billion raised by UK AI startups in 2024, the second-highest annual total. Investment is flowing into the AI sector at the top end.
Tech Nation / DSIT AI Sector Study 2024

The AI skills shortage in UK businesses

52%
Of UK technology leaders experiencing an AI skills shortage
A 114% increase from the previous survey, the steepest single-category jump in over 15 years of the report. AI is now the hardest technology skill to source in the UK; it ranked fifth 18 months earlier.
Nash Squared / Harvey Nash Digital Leadership Report, May 2025
£400bn
Potential economic benefit if AI skills gap is addressed
The UK government estimates AI could add up to £400 billion to the UK economy by 2030 if skills gaps are resolved. AI-related jobs are projected to rise from 158,000 in 2024 to 3.9 million by 2035.
GOV.UK, "Help for UK businesses to fill £400bn AI skills gap," 2025
28%
UK talent readiness for GenAI (Deloitte, 2024)
Up from 11% the previous year, but still low. Only 45% of UK enterprises offer company-wide or role-specific AI training. 59% of UK organisations were not upskilling employees in generative AI in 2024.
Deloitte, "Generative AI in the UK: A year in review," 2024
72%
Of UK companies report lacking talent in key digital areas
Including AI, data analytics, and cybersecurity. Up from 69% in 2023. The talent gap is widening slightly year-on-year.
Censuswide for Docusign, Digital Maturity Report 2024

The main barriers to AI adoption

71%
Have not identified a clear use for AI in their organisation
The most common barrier is not cost or skills, but simply not knowing what to do with AI. Most businesses haven't mapped their processes against what AI could handle.
DSIT AI Adoption Research, 2025
60%
Cite limited AI skills and expertise as a blocker
48% say lack of appropriate tools or platforms. 29% cite complex integration with existing systems. Skills is consistently the second-most-cited barrier after relevance.
DSIT AI Adoption Research, 2025
55%
Of firms cite financing constraints as top barrier to digital tech adoption
From the LSE-CBI survey of UK firms. Budget constraints affect adoption even when leadership is interested. Cost was cited especially frequently by smaller businesses.
LSE-CBI survey, July 2024
49%
Of SME non-adopters cite data privacy and security concerns
30% simply don't see the value. 58% of those who do adopt worry that over-reliance will reduce business creativity. 42% flag legal risks.
YouGov SME poll, August 2025

Management quality predicts adoption: ONS data shows that moving from the bottom 10% to the top 10% on management quality scores correlates with AI adoption rising from 2% to 10%. 48% of top-management-score firms that planned AI adoption followed through; only 17% of low-scoring firms did. (ONS MES, March 2025)

Productivity and ROI outcomes for UK adopters

75%
Of UK businesses using AI report improved workforce productivity
57% say they have developed new or improved processes. 34% report reduced operating costs. 65% cited efficiency and productivity as their primary motivation.
DSIT AI Adoption Research, 2025
66%
Of UK enterprises experiencing significant AI-driven productivity improvements
27% are already seeing financial or cost-saving returns. A further 34% expect to see those returns within the next year. (IBM "Race for ROI" study, October 2025, n=500 UK senior leaders)
IBM, October 2025
19%
Higher turnover per worker for technology adopters vs non-adopters
After controlling for firm characteristics. The ONS figures suggest a consistent productivity premium for businesses that adopt technology, including AI.
ONS Management and Expectations Survey, March 2025
£78bn
Potential UK economic boost from full AI adoption by small businesses
Microsoft-commissioned research estimates full AI adoption by UK small businesses could add £78 billion to the UK economy. Broader estimates put the potential at £550 billion to GDP by 2035.
Microsoft UK Stories, 2024
12%
Report increased revenue so far from AI
77% report no revenue change yet. Revenue impact takes time to materialise. Productivity gains tend to show first; revenue impact follows as capacity is reinvested.
DSIT AI Adoption Research, 2025
67%
Of UK leaders say internal resistance is stalling AI rollouts
Cultural barriers and internal resistance are a more common obstacle than technical ones for businesses that have already started. Getting tools in front of people is the easier part.
IBM, October 2025

Sources used on this page

  • GOV.UK / DSIT AI Adoption Research, 2025 — gov.uk/government/publications/ai-adoption-research
  • ONS Management and Expectations Survey (MES), March 2025 — ons.gov.uk
  • British Chambers of Commerce / Pertemps Employment Trends Report, July 2024 — britishchambers.org.uk
  • LSE-CBI Survey of UK AI Adoption, July 2024 — blogs.lse.ac.uk/businessreview
  • YouGov / B2B Omnibus SME leaders poll, August 2025 — yougov.com
  • ANS / YouGov IT decision-makers survey, February 2025 — techuk.org
  • Nash Squared / Harvey Nash Digital Leadership Report, May 2025 — nashsquared.com
  • GOV.UK, "Help for UK businesses to fill £400bn AI skills gap," 2025
  • Deloitte, "Generative AI in the UK: A year in review," 2024 — deloitte.com/uk
  • Deloitte, "AI ROI: The paradox of rising investment and elusive returns," 2025 — deloitte.com/uk
  • IBM, "Two-Thirds of UK Firms Gain from AI," October 2025 — newsroom.ibm.com
  • Microsoft UK Stories, 2024 — ukstories.microsoft.com
  • Oxford Insights Government AI Readiness Index, December 2024 — oxfordinsights.com
  • Stanford HAI AI Index 2025 (private investment data) — hai.stanford.edu
  • Make UK, Future Factories Powered by AI — makeuk.org
  • DSIT AI Sector Study 2024 — gov.uk/government/publications/artificial-intelligence-sector-study-2024
  • Censuswide for Docusign, Digital Maturity Report 2024
  • Lloyds Bank Business Digital Index (cited in GOV.UK SME Digital Adoption Taskforce, 2024)

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