AI ambitions outstrip UK firms’ ability to deliver on promises

A new study from Emergn shows that more than half of UK business leaders believe their expectations of artificial intelligence (AI) are outpacing their organisation's capacity to fulfil them.

The research, which surveyed 750 senior executives from companies with revenues exceeding USD $500 million, highlights a mounting disconnect between the promises of AI and the human and organisational capabilities required for its successful implementation.

AI ambitions

The report finds that 78% of UK business leaders are relying on AI solutions to generate revenue within the next year. This matches the percentage who expect business and operational efficiencies to drive growth, placing AI at the heart of strategic planning for many organisations. AI-driven revenue growth is seen by more organisations as a priority than launching new products and services (72%), expansion into new markets (63%), or entry into new sectors (51%).

However, 53% of respondents acknowledge that their AI expectations now exceed what they are capable of delivering. Despite optimism stemming from 80% of UK companies having achieved a positive return on their AI investments in the previous year, the pace of expectations appears to be eclipsing actual progress.

"Many companies view AI as a catalyst for revenue and growth, yet the real challenge lies not in adopting advanced technologies, but in bridging the gaps of talent, skills, and organisational capability. The intelligent delusion is the belief that adopting advanced technologies is itself a sign of advancement. In reality, without an AI-First mindset that considers organisational role readiness, training, and capability building, it's a sophisticated form of self-deception. The smarter the technology, the easier it becomes for intelligent leaders to overestimate its promise and underestimate the human condition required for success," said Alex Adamopoulos, Chairman and CEO of Emergn. 

Talent requirements

The study underscores the importance of people in achieving AI ambitions. Over half (55%) of UK business leaders believe they cannot reach their AI-related goals without employees skilled in problem framing, outcome-focused design, and bringing technology to market. This emphasis on the human element reflects increasing recognition that technical investment alone is insufficient.

Increased pressure to maximise returns from AI has pushed organisations to seek or develop expertise in strategic oversight and technological direction. The findings indicate that fulfilling the full potential of AI requires upskilling staff or bringing in new talent with the right capabilities to support broader business aims.

Product management's growing role

The gap between aspirations and actual outcomes has led to fundamental changes in organisational structures. Notably, product management is gaining strategic significance, with 65% of UK business leaders stating it will be critical to their company's strategy in the coming 12 months. This is a marked increase compared to just 26% the previous year.

Investment in product management has followed suit, with nine in ten UK executives reporting increased spending in this area over the past year, including updating job roles, processes, and tools. Many now see effective product management as essential for bridging the divide between ambitious AI goals and their practical application, as well as for driving innovation and maintaining a competitive edge.

Chief Product Officer appointments

Product management's ascent is also seen in the rising prominence of the Chief Product Officer (CPO) role within organisations. According to the survey, 45% of businesses have appointed a CPO in the past year, up from 33% the previous year. The enhanced visibility of product management at board level is viewed as a response to the need for leadership that can navigate the integration of AI and other emerging technologies across the enterprise.

These appointments reflect a wider recognition that closing the gap between the promise of AI and practical, revenue-generating outcomes requires both visionary leadership and robust product management at the most senior level.

The research suggests that, for most UK companies, the ability to deliver on AI's promises will depend on the combined strength of clear strategy, skilled talent, and effective leadership, rather than relying on technological advances alone.