British businesses to boost AI spending, but lack of AI skills remains a challenge
New research from ServiceNow, the AI-driven business transformation platform, reveals that British companies rank among the most AI-optimistic and mature in Europe. However, challenges remain, particularly around skills gaps and concerns over AI-generated inaccuracies.
While the UK's AI-powered business transformation is still in its early stages – with 58% of organisations either testing or evaluating AI – an elite group of 'Pacesetters' is already harnessing AI to drive tangible business value. The UK ranks third in AI maturity within EMEA, trailing only the Middle East and Benelux, with 85% of organisations planning to increase their AI investments in the coming year.
The study identified 18% of UK businesses as 'Pacesetters' – organisations that scored above 50 out of 100 in AI maturity, considering factors such as strategy, leadership, workflow integration, talent, governance, and the ability to extract value from AI investments. British business leaders displayed higher confidence than their European peers in AI’s potential, with 86% expecting AI to boost efficiency and productivity, compared to the EMEA average of 76%. Improving customer experience (85%) and driving revenue growth (79%) were also seen as key opportunities for AI integration.
Despite these promising trends, UK business leaders acknowledged AI’s limitations, particularly with technologies like Large Language Models, with 34% expressing concerns about inaccuracies. The skills gap also emerged as a significant barrier, with 57% of organisations still determining the necessary expertise for AI implementation, and only 27% feeling confident in their current talent pool.
In response, British businesses are adopting a multifaceted strategy to address the talent shortage. Over half (58%) are encouraging autonomous problem-solving within teams while also focusing on hiring and upskilling. Nearly half (48%) plan to recruit more data scientists, and 38% intend to upskill existing employees to meet the demands of an increasingly AI-driven landscape.
Damian Stirrett, Group Vice President and General Manager UK&I, at ServiceNow, says: “The race to put AI to work is still in its early stages. Yet, it’s clear that some organisations have already gained a head start in adopting and integrating it. ServiceNow’s customers are already seeing some real business transformational benefits from their investment in our AI platform, like unlocking productivity and enhancing experiences, achieving greater cost savings and huge efficiencies at scale, and all in a matter of weeks and months, rather than years too.”
