UK firms are increasingly turning to artificial intelligence to drive productivity and long-term growth, with surveys showing around a third planning to invest in AI tools in 2026 and many prioritising worker training and digital capabilities, even as a persistent shortage of skilled talent threatens adoption and rollout. According to recent data, 33 % of British businesses intend to scale up AI investment next year while 35 % plan to invest in workforce training, reflecting a strategic shift toward technology-enabled growth amid competitive pressures and tight labour markets. However, companies large and small are struggling to find and retain AI and digital expertise, with skills gaps identified as a key hurdle for technology deployment and digital transformation. Government and industry leaders are responding with initiatives to upskill millions of workers and close the talent gap, but analysts warn that without a deeper talent pipeline and more effective training, the broader economic benefits of AI could be delayed or diminished. Overall confidence in AI’s productivity gains remains strong among adopters, yet concerns about data privacy, energy use, and cost persist alongside the urgent need for skilled practitioners.
Sources:
https://www.itpro.com/business/business-strategy/uk-firms-aim-for-growth-through-ai-investment-but-lack-of-talent-is-a-concern
https://www.bmmagazine.co.uk/in-business/uk-businesses-ai-investment-2026-lloyds-barometer/
https://www.gov.uk/government/news/help-for-uk-businesses-to-fill-400bn-ai-skills-gap
Key Takeaways
- A significant portion of UK businesses are planning to increase AI investment in 2026, prioritising productivity improvements and workforce upskilling.
- A pronounced skills shortage in AI and related digital areas remains a top challenge, risking slower adoption and underperformance of AI initiatives.
- Government and industry partnerships are launching targeted training and support frameworks aimed at closing the talent gap and unlocking economic potential.
In-Depth
UK firms are clearly signalling they expect artificial intelligence to be central to growth and competitiveness in the coming year, with around one-third planning new AI investments and a similar share boosting spending on employee training, according to business barometer research. Leaders see AI tools as a way to boost productivity, improve operations, and position their companies to capture long-term opportunities, particularly in sectors facing fierce global competition. Those already using AI report solid gains in efficiency and profitability, reinforcing confidence in the technology’s business value.
But optimism is tempered by a growing skills crisis. The same labour markets that drove demand for digital transformation have created shortages in key roles like data engineers, machine learning experts, and automation specialists, making it harder for companies to implement and scale AI projects effectively. Even established firms are struggling to fill vital positions, forcing many to look at upskilling existing staff or partnering with external training initiatives just to keep pace with strategic goals.
Government initiatives, including frameworks and funding to train millions of workers by 2030, aim to address these gaps, yet building a robust talent pipeline will take time. Without it, the UK risks falling behind other nations where AI adoption and workforce readiness are progressing more swiftly. Companies and policymakers alike recognise that investment in tools must be matched by investment in people to realise the full promise of AI across the economy.