UK firms are spending more on AI than ever before, but still think data is holding them back
AI spend is rising, and so are returns on investment, but there are still some core elements holding businesses back.
UK businesses are investing more in artificial intelligence (AI) than ever before, with the average company spending £20.6 million annually, a 27% increase from 2025 levels. This trend is expected to continue, with SAP predicting a 45% rise in AI spending between 2026 and 2028, reaching nearly £30 million per year.
While businesses anticipate a higher return on investment (ROI), around 67% believe that poor data quality is currently holding them back. Poor data quality includes issues such as data quality, incomplete information, siloed systems, and limited access to real-time data. Despite this, more than half of surveyed businesses are developing governance processes to address these challenges.
However, a significant portion of UK businesses, 11%, lack a holistic approach to AI investments. Only 9% of AI users feel their governance skills are fully prepared, with 49% concerned that agentic AI is being deployed faster than it can be governed. Instead of focusing on integrating AI across the organization, many prioritize department-level investments.
SAP's UK&I Managing Director, Leila Romane, urges businesses to translate their AI ambitions into scalable business value. Meanwhile, the Confederation of British Industry (CBI) Technology and Innovation Director, Naomi Weird, argues that good governance is a catalyst for AI adoption, rather than a hindrance.
Written by urgent.news from TechRadar's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
