UK businesses AI transformation lacking effectiveness

While almost all of them plan to adopt AI, 88% predict AI-generated data will soon outgrow their current data centres and 78% are worried their infrastructure can’t keep up with AI.

These key findings were revealed from the report titled: The innovation race: reducing risk and navigating the AI frontier for future success.

The report also included confirmation that while AI emerging is a significant avenue for UK innovation, progress is being hampered by the need for increased infrastructure upgrades and capacity, rising energy costs, skills shortages and the ongoing demands of daily operational challenges.

With this being said, businesses are already adopting or planning to adopt AI, while 42% have developed an AI-first strategy, where AI is considered for every new use case.

Matt Smith, Managing Director of Technology Transformation & CIO: "AI is a core driver of business transformation for many organisations, but it's vital they have the infrastructure and expertise to support future AI growth. Given the speed of evolution we have seen already with AI, businesses should prioritise the upskilling and reskilling of staff, as well as recruiting AI experts to harness its benefits and lead implementation projects."

"The safe adoption AI can enhance productivity across the workforce and create new job opportunities, rather than displacing existing ones, and should be viewed as a tool to complement workers, facilitating greater efficiency and innovation."

Sachin Agrawal, UK Managing Director at Zoho, commented: “With 91% of UK IT leaders recognising AI as a transformative opportunity, there is continued pressure to invest in AI technologies. While AI is already playing a significant role in many UK businesses, it's clear that obstacles such as skills shortages, infrastructure limitations, and rising energy costs are threatening progress and innovation.

To unlock AI’s full potential, businesses must prioritise building digital skills across the workforce. The rapid adoption of AI demands a strong foundation in data management and analysis, which is why collaboration between government, industry, and education is essential to filter these skills across the workforce. Bootcamps focusing on AI-related skills, such as data science and software development, can help create a pipeline of talent that UK businesses need to unlock further benefits.

Moreover, the SaaS industry plays a crucial role in democratising the use of AI and data. By providing user-friendly software, we can empower all employees—not just technical experts—to leverage AI in ways that are relevant to their roles. This not only maximises the benefits of AI but also enhances overall business success.

Businesses should also understand that not every application of AI demands using a large language model, which commands the greatest computational power. Small and medium language models can also be used in some use cases to drive automation and improve business processes. This could help to ease the creaking infrastructure.

As UK businesses navigate the pressures of innovation, security, and energy costs, it’s vital that we strike a balance between these priorities. By addressing skills gaps and infrastructure needs, we can safeguard the future of AI innovation and ensure that UK businesses remain competitive on the global stage.”