UK businesses raise AI spending as readiness 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 by 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 expected to grow by a further 45 percent over the same period.

Despite that ambition, only 11 percent of businesses take a strategic, holistic approach to AI investment, while 41 percent describe their approach as piecemeal. Data quality and availability prevent 70 percent of businesses from extracting greater value, underscoring the need for integrated systems and stronger foundations.

Governance is struggling to keep pace with agentic AI adoption. While businesses are piloting agent-based applications, 49 percent say agents are being deployed faster than they can be standardised and governed. Many organisations are still developing formal oversight processes. SAP and CBI leaders emphasise that effective governance can build the trust needed to scale adoption responsibly.

Workforce preparation is another priority: 83 percent of businesses are upskilling or reskilling employees, while 79 percent say realising AI’s value requires transformation beyond technical training. At Mitie, an AI assistant handled more than 29,000 HR interactions in three months and helped reduce calls to People Support by 36 percent, freeing specialists to focus on work requiring human judgement.