AI boosts productivity and profitability for UK businesses
The vast majority of businesses using AI say the technology has helped them to boost their productivity and profitability, new research from Lloyds’ Business Barometer reveals. Of the 59% of UK companies currently using AI, more than three quarters say it has improved their productivity (82%) or profitability (76%).
Productivity benefits have been seen most widely among retailers (84%), while manufacturers have seen the most widespread profitability increases (79%). Regionally, businesses in Northern Ireland have seen the most widespread productivity benefits (95%), while firms in the North West has seen the widest impact in terms of profitability (89%).
Looking ahead, 56% of UK businesses plan to make new investments in AI over the next year, with a quarter (25%) of nonadopters planning to use AI for the first time.
Over a third (37%) of businesses are looking to start or increase their AI investment to win new customers. Firms said the biggest drivers of AI investment were productivity (46%) and profitability (41%), but many are also turning to the technology to attract new customers (37%) and compete with larger rivals (31%). To support their AI adoption plans, one in six UK businesses (17%) plan to create new AI-specific roles over the next 12 months.
However, barriers remain as the cost of the technology (42%), a lack of AI-specific skills (32%) and concerns over data privacy and energy consumption (31%) are still holding some businesses back. Firms said having a better understanding of what AI is and how it could specifically benefit their business (48%), along with examples of how other companies are using it successfully (16%), would make them more likely to increase their AI investments.
Hann-Ju Ho senior economist at Lloyds said: “AI is enhancing two pillars of business growth: productivity and profitability. Our data suggests that up to a quarter of businesses not currently using AI adopt it by this time next year, with significant degrees of follow-on investment planned from current adopters. As businesses explore how to unlock more of AI’s benefits, they will look to others for inspiration and support. Collaboration and experience-sharing will play a central role in fully capitalising on the technology’s potential while keeping up to date with the latest iterations.