UK businesses raise AI spending as governance gaps persist

UK businesses are spending an average of £20.6 million on AI in 2026, a 27 percent increase on 2025, according to research from SAP and Oxford Economics. Businesses expect average returns on AI investment to rise from 22 percent in 2026 to 39 percent within two years, with investment increasing by a further 45 percent over the same period.

Despite that commitment, only 11 percent of businesses take a strategic, holistic approach to AI investment. Data quality and availability prevent 70 percent from extracting greater value. SAP UK & Ireland managing director Leila Romane called for businesses to move beyond isolated pilots and strengthen data, governance and workforce foundations.

Agentic AI is adding urgency to governance concerns. Seven in ten UK businesses are piloting agent-based use cases, but 49 percent say deployment is outpacing standardisation and governance. Just nine percent consider their governance skills and expertise fully ready, while 61 percent are still developing formal processes and oversight.

Workforce preparation is also critical: 83 percent of businesses are upskilling or reskilling employees, while 79 percent say realising AI’s value requires transformation beyond technical training. Mitie illustrates the potential of focused deployment: in three months, its AI assistant handled more than 29,000 HR interactions and helped reduce calls to People Support by 36 percent, freeing specialists for work requiring human judgement.