A global study has found the UK is emerging as an AI leader with more than a fifth (21 per cent) of UK companies implementing AI technologies across their business – nearly double the global average (12 per cent). However, the UK’s Public Sector lags behind on adoption of AI (13 per cent) despite the new government looking to explore future opportunities for growth with this kind of technology.
The Public Sector is also the most reserved industry sector, with 54 per cent of organisations having no AI implementation plans or only beginning to explore possibilities, and only 3 per cent expecting AI to have a transformational impact in the next 5-10 years – the lowest rate across all industries surveyed.
The BearingPoint study of over 700 C-Suite level executives, including 150 UK executives from private and public sector organisations with over €500 million in revenues, also found that whilst UK companies have emerged as AI leaders, executives are concerned about bridging the skills gap and governance. Eighty per cent of UK executives identify their top concern as data privacy and security, followed closely by the talent gap for skilled personnel (77 per cent).
These concerns are consistent across leading UK industries such as Financial Services, Retail, and Automotive & Manufacturing. The lack of clarity in governance, high costs, uncertain ROI, and navigating ethical considerations are also significant barriers to adoption. The UK also faces challenges related to organisational culture and resistance to AI adoption, with half of executives in the UK highlighting these issues.
“Despite these challenges, there are notable opportunities for growth in AI adoption in the UK,” said Tony Farnfield, Partner and UK Lead from BearingPoint. “The Automotive & Manufacturing sector stands out in a cross-country comparison, with the highest rate of AI adoption in the UK among all countries surveyed, with almost a quarter of executives actively adopting AI technologies, surpassing Germany, and France. The Retail and CPG sector, while facing initial scepticism, is advancing significantly with almost a third of executives actively adopting AI, focusing on sustainability, customer experience, and market penetration.”
Farnfield continued: “While only 8 per cent of UK executives expect AI to have a transformational impact over the next 5-10 years, a substantial 58 per cent predict moderate impacts, reflecting a cautious yet positive outlook on AI’s role in driving efficiency, revenue growth, and innovation.”
Within the UK, the Retail and Consumer Goods sector leads the way with 30 per cent of executives surveyed actively adopting AI technologies within their organisations, closely followed by Energy & Utilities, and Automotive & Manufacturing who also show strong adoption. Conversely, industries like Media & Entertainment and the Public Sector show greater caution.
With the BearingPoint Study also showing that only just over a third (37 per cent) of executives across the UK have a well-documented AI strategy, Tony Farnfield from BearingPoint says that this underscores the need for clearer planning and execution frameworks, and adds: “To fully capitalise on AI’s potential, UK organisations must address the challenges highlighted in our study, foster a culture of innovation, and develop robust governance frameworks. With a growing focus on sustainability and customer experience, and as a global leader in AI enthusiasm and adoption maturity, the UK is well-positioned to leverage AI for both competitive advantage and meaningful impact in the coming years.”
