British businesses embrace AI while navigating challenges

British Businesses Embrace AI While Navigating Challenges

In a recent study by ServiceNow, a leading AI platform specialising in business transformation, it has been revealed that British businesses are at the forefront in Europe concerning AI optimism and maturity. However, while they lead in enthusiasm for AI, challenges persist in areas such as skills development and concerns over AI-generated inaccuracies.

The adoption of AI technology in UK businesses is largely still in its infancy, with statistics showing that about 58% of organisations are currently in phases of experimentation or evaluation of AI tools. Despite this nascent stage, there is a notable group of companies, referred to as ‘Pacesetters’, who have successfully integrated AI into operations, thereby extracting tangible business value from their AI investments.

According to the research, the United Kingdom ranks third in terms of AI maturity within the Europe, the Middle East, and Africa (EMEA) territories, following the Middle East and Benelux. A significant 85% of UK businesses also intend to ramp up their AI investments over the next year, marking a clear commitment to advancing their AI capabilities.

Among UK organisations, nearly one-fifth have been classified as ‘Pacesetters’. This classification is based on achieving a high score in AI maturity, taking into account factors like strategic leadership, the integration of workflows, talent management, AI governance, and deriving value from AI investments.

Business leaders in the UK exhibit a strong belief in AI’s potential to benefit their operations, with more than 86% anticipating improvements in efficiency and productivity, a figure that surpasses the EMEA average of 76%. Enhanced customer experience and revenue growth are also high on the agenda, with 85% of leaders expecting AI to bolster customer interactions and 79% looking at AI as a driver for revenue growth.

However, optimism is tempered by an awareness of the limitations and challenges that AI brings. Concerns about the inaccuracies of AI tools like Large Language Models are noted by 34% of the respondents. Additionally, there is a perceived gap in necessary skills within the workforce, with more than half of UK organisations still determining what expertise they need. Presently, only 27% believe they possess the correct mix of talent and skills.

To tackle these issues, British business leaders are adopting a comprehensive strategy. Over half of the organisations are fostering autonomous problem-solving within teams. Concurrently, efforts are being made to recruit new talent and enhance the skillset of existing employees. For instance, nearly half of these organisations (48%) have plans to bring more data scientists into their fold, while 38% are focused on upskilling current staff.

Damian Stirrett, Group Vice President and General Manager UK&I for ServiceNow, remarked on the early stage of AI adoption but acknowledged the head start of certain organisations in leveraging AI for business enhancements. “Our customers are witnessing substantial transformational benefits from their investments in our AI platform, leading to productivity gains, better experiences, significant cost reductions, and efficiencies realised within weeks and months, not years,” he noted.

The report underscores a significant moment for UK businesses as they balance optimism with strategic foresight in an increasingly AI-driven landscape.

Source: Noah Wire Services