UK businesses adopt AI widely but use remains shallow

UK business use of AI has expanded rapidly, with an ONS survey finding adoption among firms with ten or more employees rose from 12% in 2023 to 35% by 2026. But use remains shallow: the average adopter now uses 1.6 AI tools, only slightly above 1.4 in the earlier period.

Large language models were the leading category in June 2026, used by 18% of businesses, followed by visual content creation at 16%, machine learning data processing at 12% and image processing at 6%. Adoption is strongest in information and communication, where 58% of firms report using AI, while accommodation, food services and other labour-intensive sectors lag.

Nexthink’s Scott Pope said the gap reflects a cultural and visibility problem, with many companies treating AI as a cost-cutting exercise rather than a source of value. The ONS data shows only 4% of AI users report headcount reductions, while separate benchmark research says only 7% of UK organisations have an enterprise-wide AI strategy.

Policy support is increasing, including a £1.3 billion AI hardware plan and a £200 million adoption package announced at London Tech Week in June. The broader challenge is turning experimentation into measurable gains, as productivity benefits are more common than revenue growth and only around 12% of AI-using businesses report increased income so far.