UK businesses face barriers in adopting AI technologies

New research has identified major barriers to artificial intelligence (AI) adoption among UK businesses, highlighting challenges such as lack of expertise, high costs, and uncertainty around return on investment (ROI).

The survey, conducted by digital transformation company ANS in collaboration with YouGov, involved over 1,000 IT decision-makers. It revealed that 35% of businesses cited a lack of expertise as the primary hurdle to implementing AI solutions. Other notable barriers include high costs, affecting 30%, and uncertainty about ROI, impacting 25% of respondents.

Large-scale businesses appeared most concerned with regulatory compliance, which was a priority for 34% of participants from this sector. Additionally, data security concerns were noted by 31% of large-sized businesses due to the handling of sensitive customer information and adherence to strict legal requirements.

In contrast, small businesses reported facing basic obstacles such as high costs, identified by 22%, uncertain ROI, noted by 25%, and a lack of expertise cited by 27%. These findings underscore the need for increased financial assistance and skill-building initiatives specifically for smaller enterprises.

The UK Government is currently intensifying efforts to establish the nation as a leader in global AI innovation. Despite existing obstacles, more than half of the surveyed businesses believe AI is crucial to their long-term strategic objectives. Specifically, 56% are focused on boosting operational efficiency through AI deployment, while 40% see it as a vehicle for driving innovation.

Kyle Hill, Chief Technology Officer at ANS, stated: "AI is no longer just a buzzword – it's rapidly becoming a cornerstone of digital transformation. With recent announcements on the UK Government's increasing investment in the technology, demand for AI adoption will definitely be on the rise. But our research shines a light on the major challenges that still stand in the way for businesses of all sizes, which must be tackled before they consider scaled AI adoption."

He continued: "The first step for businesses, and the wider government initiatives, should be looking at the barriers and understanding how to tackle them. Discussions at the board level are critical in driving investment and adoption. The more companies discuss AI, the more likely they are to integrate AI into their operations and realise its benefits. Tackling these barriers now, rather than later down the AI adoption pipeline will enable businesses to maximise the value of AI in a safe and responsible way."

The study emphasises the importance of developing tailored AI adoption strategies that address the distinct challenges faced by various types of businesses. By resolving these issues, UK companies can better leverage AI's capabilities to enhance productivity, foster innovation, and strengthen their competitive standing on the global stage.