SAP: Why The UK Faces AI Adoption Hurdles Amid Global Race

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SAP research finds many lack the technical foundation to implement AI systems effectively
SAP reports on the UK’s AI position as businesses worldwide grapple with infrastructure limitations, talent shortages and data quality issues

As political tensions rise across the world, technology companies are grappling to navigate economic uncertainty, supply chain disruptions and increasing competition for technical talent amid the race for AI supremacy.

Whilst the UK is a prominent player in this race, particularly with the Prime Minister’s recent announcement into AI investment across the UK, it’s now facing mounting pressure to adopt AI technologies as global competitors integrate AI into their operations.

A survey from SAP called: ‘Supercharging growth with AI in the UK: A pathway for high-growth businesses’, has found that while ambition exists among British businesses, practical implementation of AI technologies requires significant infrastructure and skills development.

The survey found that while 80% of UK companies prioritise growth over customer experience improvements, many lack the technical foundation to implement AI systems effectively.

SAP reveals AI adoption priorities 

SAP found that 92% of surveyed companies rank standard AI applications as a priority for the next 12 months, while 91% are actively exploring the use of emerging applications like Gen AI.

Addressing barriers to growth, like digital immaturity, must be a priority for the UK’s high-growth organisations if they wish to reach their potential.

Wesley Doyle, Head of New Business, Corporate at SAP UKI

This has partially led to investment in advanced analytics tools, which help companies process and interpret large datasets, becoming a focus for half of the surveyed businesses as they seek to enhance decision-making capabilities.

Meanwhile, supply chain management has emerged as another focus area, with 91% of respondents identifying supply gaps as a priority - and 39% listing supply chain disruption among their top three business challenges for 2025.

Additionally, 37% of companies are turning to AI and automation specifically to build supply chain resilience and manage economic uncertainty, suggesting a strategic approach to technology adoption.

Simon Duckett, CDO at Sonnedix

"AI is revolutionising the renewable energy sector, driving smarter decisions and operational efficiency to support growth and resilience," says Simon Duckett, Chief Digital Officer at Sonnedix, the renewable energy producer.

"In a rapidly evolving market, AI's predictive models and advanced analytics help us strengthen our supply chain, adapt to economic uncertainty, and seize new opportunities. By combining cutting-edge technology with human innovation, AI ensures we remain agile and prepared to scale and adapt to change sustainably.”

Digital infrastructure limits AI implementation 

Despite SAP’s finding that business automation through AI has become a priority for 39% of organisations, the company suggests that the transition to AI implementation faces significant barriers.

The research found that legacy technology systems impede 27% of organisations from scaling AI implementations, while 34% struggle to recruit staff with AI expertise.

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Data quality presents another obstacle, with one third of companies reporting insufficient datasets for AI model training - and the same proportion identify poor data quality and planning tools as impediments to progress.

Furthermore, the skills gap has prompted 40% of surveyed companies to prioritise talent development in their growth strategies, as they seek to build internal capabilities for AI implementation.

Wesley Doyle, Head of New Business, Corporate at SAP UKI

Wesley Doyle, Head of New Business, Corporate at SAP UKI, says: “UK high-growth businesses have a real opportunity. Those that can harness AI to streamline operations, adapt to change and drive innovation will set themselves apart in a fast-evolving market.

“Addressing barriers to growth, like digital immaturity, must be a priority for the UK’s high-growth organisations if they wish to reach their potential”, Wesley says.


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