Businesses are at different stages of adoption
44% of businesses are already using AI.
Business size matters more than location when it comes to AI adoption.
Closing the adoption gap will be critical to unlocking UK growth.
Smaller businesses risk missing the growth opportunity
A key finding throughout the research is that the benefits of AI are unlikely to be evenly distributed. SMEs are often found at the lower end of the adoption scale, which means they risk missing out on the productivity and growth benefits associated with deeper adoption.
Larger organisations typically have greater access to talent, data, investment and technical expertise. That gives them an advantage in moving from experimentation to embedded adoption. Meanwhile, mid-market firms with a turnover above £25m are 67% more likely to be transforming adopters.
UK growth will depend on adoption across every region
It is businesses, entrepreneurs and communities that ultimately decide how quickly AI is adopted and where the benefits are felt.
This means the growth opportunity is not confined to major technology centres. There is clear potential across every nation and region of the UK. Indeed, our research suggests that geography alone is not a major factor determining AI maturity. Region explains only 8% of the variation between similar firms in AI use, compared with 39% for headcount and 24% for turnover.
Skills gaps
Many businesses lack the digital skills needed to deploy AI confidently, with access to the right skills and investment capacity emerging as key differentiators in AI maturity.
Concerns about cost
Smaller firms are often constrained by budgets, relying on low-cost, free or bundled AI tools, while larger businesses are more likely to have dedicated AI investment.
Uncertainty about which tools to use
Many organisations are still working out which AI tools will deliver the greatest value and how to move from isolated pilots to wider business adoption.
Limited in-house technical expertise
Organisational readiness and management choices are proving just as important as sector or size in determining whether businesses can scale AI effectively.
Questions about security, trust and governance
Businesses also need confidence that AI can be introduced responsibly, with appropriate oversight, governance and safeguards as adoption becomes more embedded across operations.
How Wales-based Academii is harnessing AI
AI-powered learning platform, Academii, supported through our Cardiff Accelerator, is helping organisations close skills gaps and future-proof their workforce. It uses AI to develop virtual simulations for people working in operational roles to practice skills in safe environments.