![AI adoption hesitancy: 57% of businesses hold back despite growing regulatory pressures](/sites/default/files/2025-02/AI%20adoption%20hesitancy%2057%25%20of%20businesses%20hold%20back%20despite%20growing%20regulatory%20pressures.png)
AI adoption hesitancy: 57% of businesses hold back despite growing regulatory pressures
A new industry report on compliance in the UK reveals a striking paradox: while 58% of businesses cite manual processes as their biggest challenge, 57% still haven’t adopted AI to ease the burden. As regulatory pressures mount, AI is positioned to play a transformative role in compliance practices – but many businesses remain hesitant.
The Annual Benchmarking Report, from compliance training provider Skillcast, is based on a survey of over 100 compliance, learning and development, and training professionals from a diverse range of organisations.
Despite growing regulatory pressures, including the Digital Operational Resilience Act (DORA), which took effect in January 2025, fewer than 50% of respondents reported that senior leadership actively champions their organisation’s compliance programme. This is compared to 83% of the compliance team. The report warns that this disparity highlights the urgent need for AI-driven solutions to embed compliance into business operations.
Outdated tools also remain a major obstacle, with 81% of businesses still relying on spreadsheets to manage compliance data, raising concerns over security and inefficiencies. The report findings showcase the growing need for more efficient, technology-driven approaches to streamline workflows and improve accuracy in regulatory tracking.
Vivek Dodd, CEO at Skillcast, said: “As regulatory demands grow, AI is no longer a luxury – it’s a necessity. Businesses still relying on spreadsheets and manual processes are exposing themselves to unnecessary risks. AI has the power to automate compliance, enhance data security, and provide real-time accuracy, making it essential for staying ahead of evolving regulations. Leaders need to take action now to embed AI into their compliance strategies before these challenges become even harder to manage.
“However, AI’s potential doesn’t stop there. Expanding beyond data management, AI is reshaping compliance training and culture. Our report shows that 53% of respondents want shorter and more engaging training, and AI-driven platforms can deliver personalised, adaptive learning to meet that demand.
“Over half of businesses still appear hesitant to adopt AI in their compliance practices, which could be influenced by factors such as cost, trust concerns, and the complexities of implementation. While a cautious approach is understandable, embracing responsible and ethical AI is becoming essential for businesses looking to enhance intelligence, drive data-informed decisions, and foster a proactive, engaged workforce. By leveraging AI in compliance processes and training, companies can strengthen resilience and stay ahead in an evolving regulatory landscape.
“With attention spans at an all-time low, our benchmarking report highlights the urgent need for businesses to modernise their compliance practices. Organisations must invest in specialist digital platforms to make it as simple as possible for employees to do training, and for the compliance team to bridge the gap between them and other departments, securing active support from senior leadership.
“Businesses that resist AI risk falling behind in compliance, cybersecurity, and data management. Without AI, they may struggle to manage regulatory requirements, detect threats in real time, and protect sensitive data. As risks grow, failure to adopt AI could lead to inefficiencies, penalties, and security vulnerabilities.”
For more startup news, check out the other articles on the website, and subscribe to the magazine for free. Listen to The Cereal Entrepreneur podcast for more interviews with entrepreneurs and big-hitters in the startup ecosystem.