• 3 min read
UK AI use triples, but most firms stay shallow
ONS data shows UK business AI adoption rose from 12% to 35% since 2023, while the average adopter still uses just 1.6 AI tools.
Image: TNW
UK businesses are adopting AI fast, but most are still using it in a limited way. New Office for National Statistics data shows that the share of UK businesses with 10 or more employees using at least one AI technology climbed from 12% in 2023 to 35% in June 2026.
That is a sharp jump in reach, but not in depth. The average AI-using business went from 1.4 AI technologies to just 1.6 over the same period, suggesting many companies are still experimenting rather than building AI into core operations.
Large language models are now the most common AI category, used by 18% of firms in June 2026. Visual content creation tools follow at 16%, then data processing using machine learning at 12%, and image processing at 6%. Adoption also remains uneven across sectors: 58% of businesses in information and communication report using AI, while accommodation, food services, and other labour-intensive industries lag far behind.
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According to Scott Pope, Director of Value Advisory at Nexthink, the problem is not the technology itself.
“AI adoption in the UK is widening but not deepening, and the reason is a culture problem as much as a technology one. Too many businesses treat AI as a cost-cutting exercise rather than a way to create genuine value, and moving beyond that requires a shift in mindset.”
The ONS figures support that argument. Just 4% of businesses using AI say it has reduced headcount, and separate benchmark research found only 7% of UK organisations are pursuing an enterprise-wide AI strategy.
Productivity gains without much revenue lift
Pope says many leaders still lack basic visibility into how AI is being used across their organisations, whether those tools are safe, and where risk is building. Without that data, companies tend to default to cautious rollouts, which limits the evidence needed to justify broader investment.
That helps explain another gap in the numbers. Productivity gains are the most commonly reported benefit of AI, cited by three-quarters or more of adopters across multiple surveys. But only around 12% of AI-using businesses report increased revenue so far.
Government funding meets an execution problem
The UK government announced a £1.3 billion AI hardware plan and a £200 million adoption package at London Tech Week in June, including an expanded Bridge AI scheme and a skills programme claiming 1.7 million course completions. Prime Minister Starmer has urged the country to “push past” fears about AI.
But the ONS data points to a different bottleneck. It tracks 41% of businesses reporting no barriers to adoption, yet many of those companies are already running only shallow AI deployments. UK AI startups are now valued collectively at $256 billion, accounting for 22% of the country’s innovation ecosystem. The infrastructure is there; turning AI use into durable business advantage is proving harder.
Enterprise Editor
Marcus follows the money. He covers enterprise software, cloud architecture, and the tectonic shifts in Big Tech strategy. He translates dense earnings calls and complex M&A activity into actionable insights about where the industry is actually heading. If a tech giant makes a silent pivot, Marcus is usually the first to notice.
via TNW
