IBM says UK Artificial Intelligence adoption is stalling

UK businesses are using Artificial Intelligence widely, but many are struggling to turn early productivity gains into measurable financial returns. IBM says the main barriers are strategy, skills, governance and leadership alignment rather than the technology itself.

UK businesses are adopting Artificial Intelligence widely, but many are struggling to convert that momentum into meaningful financial returns. IBM’s Race for ROI study found that 66 per cent of British enterprises report significant productivity improvements from Artificial Intelligence, with 63 per cent of senior leaders citing noticeable efficiency gains post-adoption. Even so, 62 per cent of organisations are still failing to unlock Artificial Intelligence’s full potential, pointing to a gap between early success and broader transformation.

Over three-quarters of UK businesses are using Artificial Intelligence tools in some capacity, and companies are already seeing time savings and workflow improvements. IBM reported that Artificial Intelligence is freeing up time for higher-value tasks, including innovation (41 per cent) and creative work (41 per cent). But progress beyond those early benefits remains uneven. Studio Graphene found that 31 per cent of UK firms using Artificial Intelligence have seen any positive return on investment, while fewer than half can clearly define what success looks like. Global enterprise research also suggests that fewer than one in 10 companies is achieving a large-scale financial impact from Artificial Intelligence.

IBM says the biggest constraint is organisational change rather than the technology itself. Sebastian Weir, executive partner at IBM, said businesses cannot simply give workers access to a co-pilot and expect adoption to follow. Internal resistance and cultural barriers remain significant, with 67 per cent of UK business leaders identifying them as key obstacles. At the same time, only 38 per cent of organisations are prioritising Artificial Intelligence upskilling across their workforce. A YouGov survey commissioned by The Access Group found that 70 per cent of UK employees are experimenting with Artificial Intelligence tools, while only 19 per cent have received formal training.

Expectations around near-term returns are also creating friction. IBM found that while over a quarter of UK firms are already seeing cost savings, a further 34 per cent expect returns within the next year, even though many benefits take time to materialise and are difficult to measure in conventional financial terms. Rapid changes in frontier models are adding another complication, as teams risk focusing on upgrades rather than outcomes. Looking ahead, IBM’s enterprise 2030 research found that 79 per cent of executives expect Artificial Intelligence to contribute significantly to revenue, but only 24 per cent can clearly identify where that growth will come from. Governance, measurement and leadership KPIs are emerging as the critical areas where businesses need clearer direction.

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