Why Businesses are Still Struggling to Adopt AI

AI has been heralded as a transformative technology for businesses worldwide, promising increased efficiency and innovation.

However, a new report suggests that UK companies are falling behind in adopting this technology.

This comes at a time when global competitors, particularly in the US and China, are rapidly integrating AI into their operations, potentially giving them a competitive edge in the international market.

The report, conducted by ANS, a digital transformation provider, in partnership with polling firm YouGov, surveyed IT decision-makers across 240 mid-sized enterprises in the UK.

ANS, which was named Microsoft's UK Services Partner of the Year 2024, provides cloud, security and data services to various organisations.

We take a look at the survey, part of ANS's inaugural Business Blockers report, aimed to understand how access to technology impacts UK businesses.

Low adoption AI rates despite potential benefits

The global AI market size was valued at US$136.55bn in 2022 and is projected to reach US$1,811.75bn by 2030, according to a report by Grand View Research.

Yet ANS and YouGov’s 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 low adoption rate is particularly concerning given the potential benefits of AI technology.

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 worryingly, 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.

Yet, these findings contrast sharply with recent data from Microsoft, a major technology company, 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.

Calls for improved AI readiness

Kyle Hill, Chief Technology Officer at ANS, emphasises the need for businesses to improve their AI readiness: "Now is an exciting time for businesses, with emerging technologies like AI changing the way we work across the board”

He adds: "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.

“All businesses can adopt AI into their operations, with administrative platforms like Microsoft Copilot often proving to be a good place to start."

The Business Blockers report also explored attitudes towards cybersecurity, low code development and barriers to business growth in the UK.

These findings also provide a comprehensive view of the technological landscape facing UK mid-sized enterprises.

Overall, the report's findings suggest that more education and support may be necessary to help UK businesses understand and implement AI technologies effectively.

As global competition intensifies, the ability to leverage AI could become a crucial factor in maintaining competitiveness on the international stage.

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