AI is dominating UK businesses, but isn't yet driving customer value

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A lack of progress hasn’t stopped spending plans so far

Half man, half AI.
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  • AI is a top talking point but almost 90% of UK businesses haven't seen return
  • AI investment is set to increase by 32% by 2026
  • Over four in five survey respondents think the UK could become a global AI powerhouse

Most organizations are now using AI in some form, and personal use is becoming more and more common. But, new research from Red Hat suggests that this extensive AI use isn’t yet paying off, with 89% of British businesses yet to see any drive in customer value from their AI investments.

That isn’t deterring too many organizations though, with businesses planning to boost AI investment by around 32% by 2026. Despite growing fears that the AI bubble could soon burst and lead to ‘sharp market correction’, there’s still hope - with 83% of survey respondents agreeing that the UK has the potential to become a ‘global AI powerhouse’ within the next 3 years.

The British government has invested heavily in ‘unlocking AI’ for businesses by creating safety platforms, launching ‘growth zones', and a set of over 100 new data centers across the country to power higher demand.

Confidence still high

For the next 18 months, AI is a top-ranked concern alongside security - with agentic AI topping the table for highest priority for 68% of organizations - although that comes with its own unique set of risks to navigate.

AI adoption is moving fast, but it doesn’t come without its challenges. Almost all (95%) survey respondents experienced barriers to AI adoption, primarily high implementation and maintenance costs (34%), security and data privacy concerns (30%), and integration difficulties with existing systems (28%).

Sourcing and nurturing talent remains a difficulty too, with AI currently ranked the most urgent skills gap by 55% of respondents, as well as worries that workers need to efficiently use the technology (52%), and a need for overall AI education within the company (48%).

“Organizations are investing substantially in AI but currently only a few are delivering customer value,” explains Joanna Hodgson, UK Country manager at Red Hat. “In the journey from experimentation to sustainable production, enterprise knowledge and integration with enterprise systems must pave the road to achieving value from AI.”

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Ellen Jennings-Trace
Ellen Jennings-Trace
Staff Writer

Ellen has been writing for almost four years, with a focus on post-COVID policy whilst studying for BA Politics and International Relations at the University of Cardiff, followed by an MA in Political Communication. Before joining TechRadar Pro as a Junior Writer, she worked for Future Publishing’s MVC content team, working with merchants and retailers to upload content.

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