The £119Bn AI advantage: why startups can’t afford to wait
From predictive maintenance at Rolls-Royce to hyper-personalised retail at John Lewis, AI is no longer a future goal, it’s the engine of smarter operations, sharper decision-making, and competitive edge, with startups that are embedding AI early and meaningfully into their products and processes already pulling ahead.
According to the UK Government’s AI Opportunity Forum, AI could contribute £119 billion to the UK economy, but that opportunity won’t go to businesses playing with surface-level tools, it will belong to those building AI into their DNA through scalable, tailored software systems.
While headlines still focus on chatbots and gimmicks, startups are finding real value in AI through automation of repetitive tasks, smarter workflows, real-time insight, and faster iteration cycles, enabling early-stage teams to scale faster and smarter.
Big brands are leading the way. Rolls-Royce is cutting downtime with predictive AI, John Lewis is leveraging visual AI for next-level customer experiences, and Lloyds Bank is improving fraud detection through real-time data analytics. Even in the public sector, a Microsoft 365 Copilot pilot saved UK Civil Service teams the equivalent of two working weeks per employee per year.
Startups that want to follow suit, move quickly and build efficiently must go beyond generic AI platforms, and prioritise bespoke software solutions that are tailored to their own product, data stack, customer behaviours, and growth goals.
David Ritchie, Co-Founder of bespoke software consultancy Propel Tech, explains: “For startups, AI isn’t just a feature, it’s a foundation, and the companies seeing real returns are the ones building custom, AI-ready infrastructure that’s aligned to how they operate and grow.”
As AI accelerates across sectors - from fintech and healthtech to logistics and e-commerce – startups face a simple choice: build systems now that will flex with growth, or risk hitting scaling roadblocks later. Delaying investment in digital infrastructure can cost more than lost time, it can mean missed markets, team burnout, and falling behind agile competitors.
To help founders futureproof their tech stack, Propel Tech is offering a free Software Health Check. This service helps startups assess where their current code, infrastructure, and systems could be improved to support rapid scaling, increase efficiency, and prepare for meaningful AI integration, all with minimal disruption.
Ritchie concludes: “The startups that act early, with a product-driven mindset and strong technical foundations, are the ones that will break through the noise. AI can be a shortcut, but only if it’s built right.”
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.
