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

February 2025 – Despite soaring interest in artificial intelligence (AI), UK businesses are still facing major challenges when it comes to adoption. Lack of expertise is the top barrier (35%), with high costs (30%), and uncertainty around ROI (25%) followed closely behind. These cost-related hurdles highlight a pressing need for targeted support and resources to accelerate AI integration.

The findings come from a survey of over 1,000 IT decision-makers from digital transformation leader and Microsoft UK Services Partner of the Year, ANS, in partnership with YouGov.

Significantly, the research reveals stark disparities between the challenges faced by large and small businesses. Larger businesses, often equipped with greater financial resources, are primarily concerned with regulatory compliance (34%) and data security (31%) due to the management of sensitive customer data and more stringent legal requirements. Meanwhile, smaller businesses face more fundamental challenges, with high costs (22%), uncertain ROI (25%), and lack of expertise (27%) standing as key barriers, emphasising a stronger need for financial support and skill development.

The report arrives as the UK Government ramps up efforts to position the country as a global leader in AI innovation. Encouragingly, just over 50% of businesses believe AI is an important long-term strategic goal. These businesses are evidently remaining optimistic about AI's transformative potential, with over half (56%) prioritising operational efficiency and 40% aiming to drive innovation through AI adoption. As AI continues to unlock new opportunities, now is the time for more businesses to recognise the significant value it can bring to their organisations.

Kyle Hill, Chief Technology Officer at ANS commented: “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.

“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 findings underline the need for a more tailored approach to AI adoption strategies, recognising the varying challenges faced by businesses of different sizes. Addressing these issues now can empower UK businesses to harness the full power of AI, driving productivity, innovation, and competitive advantage in the global market.

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