Study Finds Businesses are Still Struggling to Utilise AI

AI adoption in businesses globally has seen significant growth, with a 2023 McKinsey survey reporting 55% of companies worldwide using AI in at least one business function, up from 50% in 2022.

However, a new report suggests UK mid-sized enterprises are falling behind in this trend.

This lag comes as the global AI market, valued at US$136.55bn in 2022, is projected to reach US$1,811.75bn by 2030, according to Grand View Research.

Yet the disparity raises questions about the UK's future competitiveness in the rapidly adapting global digital economy.

The report, conducted by ANS, a digital transformation provider and Microsoft's UK Services Partner of the Year 2024, in collaboration with polling firm.

YouGov, surveyed IT decision-makers across 240 UK mid-sized enterprises.

We look at the findings from the study, part of ANS's inaugural Business Blockers report, aimed to understand the technological landscape facing these companies.

AI adoption rates and barriers

The survey reveals that only 19% of UK mid-sized enterprises, defined as companies with 250 to 999 employees, have incorporated AI into their business operations.

This figure contrasts sharply with global trends and raises concerns about the UK's technological competitiveness.

Kyle Hill, Chief Technology Officer at ANS, comments on the findings: "We are seeing that swathes of businesses are not seizing the opportunities AI has to offer, and we urge all enterprises to improve their AI readiness."

The report indicates that 26% of surveyed companies are exploring AI opportunities, while 39% are unsure if AI is suitable for their business.

Perhaps more concerning, is that 18% of IT decision-makers believe AI is overhyped and won't affect their businesses in the near future, with an equal percentage expressing concerns about AI's potential impact on their operations.

Contrasting global trends

These findings stand in stark contrast to recent data from Microsoft, which highlighted the positive impact of its AI tool, Copilot.

Microsoft reported that customer service agents at Teladoc, a virtual healthcare company, save up to five hours per week using Copilot to draft responses to common client questions.

Similarly, marketers at Finastra, a financial software company, have seen a 75% reduction in time spent on content creation.

The disparity between these success stories and the hesitancy of UK mid-sized enterprises suggests a need for greater education and support in AI implementation.

The Business Blockers report also explored attitudes towards cybersecurity, low code development, and barriers to business growth in the UK, providing a comprehensive view of the technological landscape facing UK mid-sized enterprises.

Kyle concludes: "All businesses can adopt AI into their operations, with administrative platforms like Microsoft Copilot often proving to be a good place to start. Now is an exciting time for businesses, with emerging technologies like AI changing the way we work across the board."

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