Artificial intelligence is becoming a central pillar of cloud strategy for UK organisations, with new data showing that 88% of IT leaders have made AI preparation a top priority for the next 18 months.
The findings, from a Red Hat survey of 609 senior IT managers across six countries, reveal that AI adoption is now closely tied to broader cloud transformation efforts. In the UK, the focus on AI aligns with the 89% of respondents prioritising cloud-native development—underscoring how intelligence is seen as the next driver of cloud value.
Open-source solutions backed by enterprise support are emerging as a preferred route to responsible AI deployment. Nearly all UK respondents—98%—say such models accelerate innovation and improve cost efficiency. Hans Roth, Senior Vice President and General Manager EMEA at Red Hat, said open-source AI was uniquely suited to meet enterprise demands for transparency, modifiability and explainability, particularly in generative AI.
But as AI adoption gathers pace, operational challenges are also deepening. Siloed teams were cited by 96% of UK IT leaders as a major barrier to cloud progress, highlighting the fragmentation that threatens to slow integration efforts. Talent shortages are also worsening: 81% report a lack of expertise in AI, data science, large language models and generative AI, up from 72% the year before.
The skills gap is already limiting progress. Just one in four firms believe they have the platforms and talent needed to realise AI’s full potential, while 40% say their IT infrastructure lacks the scalability to support AI workloads. Research from October 2025 shows that nearly 90% of UK organisations have yet to generate measurable customer value from AI, despite heavy investment.
Amid these constraints, enterprise-supported open-source AI is proving a strong enabler of innovation. More than half of UK IT leaders say it delivers faster development, while trust factors such as explainability, data privacy and proven performance are seen as essential for deployment. Jo Hodgson, Red Hat’s UK country manager, said open-source AI offers a flexible, community-backed model that helps firms scale responsibly while benefiting from enterprise-grade support.
Cloud remains a near-universal investment priority, with 98% of UK firms identifying it as key to their digital transformation in 2025. However, challenges persist—rising costs, inconsistent security across providers and limited resource control all threaten to undermine progress.
Looking ahead, 83% of UK organisations believe the country can become a global AI leader within three years. But realising that goal will depend on addressing the skills crisis, improving governance and fostering collaboration. Jonny Williams, from Red Hat’s UK public sector division, said open, trustworthy foundations were essential to counter emerging risks such as ‘shadow AI’ and rising operational pressures.
Red Hat’s survey offers a clear picture: UK firms are committed to embedding AI into their cloud strategies, and open-source innovation is at the heart of that effort. But without targeted action on talent and governance, their ambitions risk being held back.
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