UK businesses optimistic about AI spending despite integration challenges

In a recent study conducted by ServiceNow, a significant 85% of UK businesses have expressed intentions to increase spending on artificial intelligence (AI). This trend persists despite lingering apprehensions about how prepared these businesses are to effectively integrate the technology into their operations. The study involved responses from over 2,000 executives within the Europe, Middle East, and Africa (EMEA) region and forms part of ServiceNow’s Enterprise AI Maturity Index.

A notable finding from the research is the marked optimism among British companies regarding AI’s potential benefits. Specifically, 86% of UK firms believe AI will positively impact efficiency and productivity, a much higher percentage compared to the EMEA average of 76%. This enthusiasm underscores the widespread anticipation that AI could significantly enhance business processes and outcomes.

Despite the enthusiasm for AI, many companies are still in the nascent stages of adoption, grappling with various challenges related to the technology. These challenges primarily concern identifying the required skills and effectively integrating AI tools into existing workflows. The report categorises around 18% of UK businesses as ‘pacesetters’—companies that have shown noteworthy progress by scoring more than 50 out of 100 on an AI maturity assessment. This places the UK just behind regions like the Middle East and the Benelux countries (Belgium, the Netherlands, and Luxembourg) in embracing AI technologies.

The rationale driving the push for more advanced AI capabilities is evident, with 79% of UK firms expecting AI to drive revenue growth. In customer-facing sectors, optimism is even higher, with 85% of respondents hopeful that AI can enhance customer experiences.

However, significant hurdles remain on the path to full AI integration. More than half of the UK businesses (57%) are still trying to ascertain the specific AI skills they require, while 37% feel their current talent mix is inadequate for AI deployment. Additionally, 34% of executives are concerned about potential errors and inaccuracies that AI-generated outputs might introduce.

Damian Stirrett, Group Vice President and General Manager for the UK & Ireland at ServiceNow, noted that while the incorporation of AI is still in its early stages, some organisations owe their progress to a proactive approach towards its adoption and integration. Looking forward, ServiceNow advises that investing in new talent and enhancing the skills of existing employees are crucial steps for companies preparing to deploy AI technologies effectively.

The study sheds light on the ambitious trajectory UK businesses are charting towards becoming a global hub for AI, notwithstanding the complexities encountered during the technology’s initial implementation phases.

Source: Noah Wire Services