Functional tech is costing UK businesses revenue, but AI could help
As UK organisations strive to boost productivity in a challenging economy, new research from TeamViewer highlights concern about dysfunctional technology. Digital friction, the study reveals, is quietly eroding business performance and limiting productivity gains across industries.
According to 'The Impact of Digital Friction' report, nearly half (46%) of UK businesses say that “digital friction” – everyday technology frustrations that slow down work – has directly led to lost revenue. An even greater number (55%) have experienced delays in critical projects due to IT issues.
The study surveyed more than 4,200 professionals worldwide, including 400 in the UK. Troublingly, it also found that UK employees fear their technological challenges will worsen rather than improve – a third (30%) expect the amount of time they lose to digital friction to increase in the next year.
How the UK compares globally
When compared with other major markets, the UK sits slightly above the global average for digital friction, but well behind leaders like the US and India. While 46% of UK businesses report revenue loss due to IT inefficiencies, that figure rises to 50% in the US and 65% in India, compared with a global average of 42%. In contrast, only a third (33%) of German businesses report the same impact, highlighting a notable gap in how organisations across regions manage their digital infrastructure.
The human cost of digital friction
Beyond its financial impact, digital friction is taking a toll on the UK workforce. Nearly half (47%) of UK respondents believe tech frustration contributes to employee turnover, while almost a third (31%) have seen colleagues leave due to persistent IT issues.
This frustration is changing how people think about work: 45% say they would ask about a company’s digital employee experience before accepting a job, and 27% admit they’ve considered leaving because of ongoing IT challenges.
Such findings reveal that digital friction is not only a technical issue, but a cultural and people challenge that affects motivation, satisfaction, and talent retention.
AI’s role in resolving dysfunction
Encouragingly, the research highlights a clear path forward. Nearly half of UK respondents (48%) believe AI can help reduce digital friction in their organisation. Meanwhile, half (52%) are open to AI taking over routine IT tasks such as troubleshooting and password resets.
These insights suggest a growing readiness among UK businesses to embrace AI as a force multiplier for productivity and efficiency, helping teams work smarter and faster while reducing everyday hurdles.
“Technology should empower people, not hold them back,” said Andrew Hewitt, VP of Strategic Technology at TeamViewer. “With productivity such a huge focus for UK businesses right now, there’s a real opportunity to turn everyday tech frustrations into progress. Our findings show that reducing digital friction can have an enormous impact on both performance and morale. When organisations embrace AI-powered connectivity and smarter IT systems, they can remove barriers, give people back valuable time, and create a smoother, more rewarding work experience.”
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