Major barriers to AI adoption remain for UK businesses, despite growing demand, new report reveals

Major barriers to AI adoption remain for UK businesses, despite growing demand, new report reveals

  • 24.03.2025 13:15
  • techuk.org
  • Keywords: High Costs, Lack of Expertise, Regulatory Compliance

Lack of expertise, high costs, and regulatory compliance are major barriers to AI adoption in the UK, with small businesses facing financial challenges and larger firms focusing on data security and legal requirements. Despite growing demand, these hurdles highlight the need for targeted support to accelerate AI integration across industries.

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Estimated market influence

ANS

ANS

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Analyst rating: Buy

Conducted a survey on AI adoption barriers with YouGov.

Microsoft UK Services Partner of the Year

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Analyst rating: N/A

Recognised as a leader in digital transformation and AI integration.

Context

Analysis of AI Adoption Barriers in UK Businesses

Overview

  • Key Insight: Despite growing demand for AI, UK businesses face significant barriers to adoption.
  • Report Source: Survey of over 1,000 IT decision-makers by ANS (Microsoft UK Services Partner of the Year) and YouGov.

Key Findings

Barriers to AI Adoption

  • Lack of expertise: Cited as the top barrier by 35% of businesses.
  • High costs: Identified by 30% of businesses, particularly small firms.
  • Uncertainty around ROI: A concern for 25% of businesses.
  • Regulatory compliance: Top concern for large businesses (34%).
  • Data security: A major issue for large companies (31%).

Business Size Disparities

  • Large Businesses:
    • Regulatory compliance (34%) and data security (31%) are primary challenges.
    • Reflect greater financial resources but stricter legal requirements.
  • Small Businesses:
    • High costs (22%), uncertain ROI (25%), and lack of expertise (27%) are key barriers.
    • Emphasize need for financial support and skill development.

Market Trends and Strategic Priorities

  • Operational Efficiency: Over 56% of businesses prioritize AI for operational efficiency.
  • Innovation: 40% aim to use AI to drive innovation.
  • Government Support: UK Government is increasing investment in AI, positioning the country as a global leader in AI innovation.

Competitive Dynamics and Strategic Considerations

  • AI as a Strategic Goal: Over 50% of businesses view AI as an important long-term strategic goal.
  • Board-Level Discussions: Critical for driving investment and adoption.
  • Early Action Needed: Addressing barriers now will maximize AI value and ensure responsible adoption.

Long-Term Effects and Regulatory Impacts

  • Potential Benefits: AI can drive productivity, innovation, and competitive advantage in the global market.
  • Regulatory Focus: Compliance and data security remain critical challenges for large businesses.
  • Government Role: Tailored support and resources are needed to accelerate AI integration across all business sizes.

Expert Perspective

Kyle Hill, Chief Technology Officer at ANS:

  • “AI is no longer just a buzzword—it’s rapidly becoming a cornerstone of digital transformation.”
  • Emphasized the need for addressing barriers now to maximize AI benefits safely and responsibly.

Conclusion

The report highlights the urgent need for targeted support and resources to overcome AI adoption barriers in the UK. Businesses must adopt tailored strategies based on size and specific challenges, while governments and organizations should focus on fostering innovation and compliance to unlock AI’s full potential.