The results show that 94% of respondents believe the UK tech sector is either ‘very’ or ‘somewhat’ resilient to global political and economic shocks, underlining the strength of the sector’s foundations. However, this confidence is tempered by challenges around rising prices (71%), a lack of government leadership (51%), and limited funding (45%).

When asked about the UK’s position in the global AI race, 12% believe the UK is leading, while over half claim that it is keeping pace (56%) with global AI innovation. Around one third (32%) say the country is falling behind major tech hubs such as the US and China. Three-quarters of respondents (78%) cite limited government support as the primary barrier to progress on AI, followed closely by funding constraints (73%) and talent shortages (40%).

Despite these concerns, AI adoption is accelerating: 88% of organisations say they are already implementing AI, with over half viewing its impact on their business in the next 12 months as ‘very positive’. Almost half of respondents (44%) are ‘somewhat positive’ about its potential impact.

Key findings include:

• Fifty nine percent of respondents trust the government to regulate AI innovation appropriately, though 42% are either unsure or lack confidence
• Just over half of respondents (51%) believe there is enough education and awareness nationally around AI’s risks and benefits
• Seventy three percent of businesses report a shortage of AI talent, with 14% calling it a ‘major challenge’
• An overwhelming 91% feel confident in positioning themselves as AI thought leaders, indicating a strong appetite to drive the narrative

 Simon Baxter, Research Director at leading UK analyst TechMarketView, said: “Despite an uncertain and inflationary market environment, many organisations have embraced AI, viewing it as crucial to the success of their business. Any still on the fence about its value will soon have to cast away preconceived notions as they scramble to catch up with their peers.

“The perception of the AI efforts from the UK government, however, remains mixed, and rightly so. There’s no doubt the UK has the talent and tech foundations to capitalise on the benefits AI can bring, but the government must move faster and with sufficient funding if we don’t want the UK to stagnate or fall behind other global economies.”  

Leah Jones, Deputy MD at CommsCo, commented: “There’s a clear desire across the UK tech sector to lead with AI, and positive signs that businesses are optimistic about the results of implementing this technology. We are excited to see what the next year ahead delivers.”

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