UK firms report AI productivity boost but face skills and culture barriers

IBM found that 66% of companies experiencing AI-led productivity improvements align with 63% of leaders citing better operational efficiency. However, nearly two-thirds of organisations admit they have yet to fully realise AI’s potential—primarily due to cultural barriers and workforce readiness.

“UK businesses are clearly seeing the productivity benefits of AI,” said Leon Butler, IBM’s UK and Ireland chief executive. “But the real opportunity lies ahead—unlocking even greater value through workforce transformation and upskilling.” He called for company-wide investment in AI training to create a resilient, innovation-ready workforce.

techUK’s director of tech and innovation, Sue Daley, echoed this, urging businesses to embed AI reskilling into their employee development strategies to ensure all staff can contribute to, and benefit from, AI integration. While the UK’s AI adoption is encouraging, international comparisons show it lagging behind countries like India and the UAE, where nearly 60% of large enterprises have deployed AI solutions. In contrast, many UK firms remain in early exploration, constrained by high costs, data challenges and a persistent shortage of AI expertise.

The skills gap has long been a concern. A 2022 IBM report revealed that only a third of UK businesses had accelerated AI use over the prior two years, falling behind the European average. Despite this, 65% of UK and Ireland CEOs now say they are scaling up AI agent deployment, signalling growing executive urgency to act.

Generative AI is also gaining traction. In 2023, IBM found that nearly 80% of UK business leaders had deployed or planned to deploy the technology within a year. While enthusiasm is high, so too is the emphasis on governance—most leaders cited responsible AI frameworks as a top priority.

To help close the skills gap, IBM has committed to training two million learners in AI by the end of 2026, with a focus on underrepresented communities. The UK government has pledged to upskill 7.5 million workers in AI-related fields, highlighting the role of public-private partnerships in driving change.

The UK is at a pivotal moment in its AI journey. With two-thirds of firms already benefiting from productivity gains and leadership appetite for deeper adoption, the foundations are strong. But realising the full potential of AI will depend on addressing cultural resistance, investing in workforce transformation and ensuring ethical, inclusive deployment. If these priorities are met, the UK can position itself as a global leader in responsible AI innovation.

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