UK business AI use doubles to 32% as skills gaps persist

AI adoption among UK private sector businesses with at least five employees reached 32% in 2026, up from 16% in 2025, according to the government’s AI Adoption Survey. Published on 29 October, the findings draw on telephone interviews with 3,503 businesses. Most firms use off-the-shelf tools for administration and marketing, while only 14% consider AI highly or critically important to their business.

Adoption increases with business size, reaching 52% among large businesses. Information and communication leads sector uptake at 61%. Among businesses using or planning to use AI, 77% use or plan to use tools based on large language models. Human oversight remains common, with 81% of adopters applying human input to AI outputs.

Productivity improvements are more widespread than financial savings. Better workforce productivity was reported by 71% of adopters, and 60% reported more efficient or flexible processes. Lower operating costs were reported by 24% of businesses, while 64% had seen no immediate financial effect.

Limited AI skills, expertise or knowledge affected 67% of adopters and 78% of businesses planning adoption. Among non-users, 65% cited the lack of a clear business case or return on investment. Implementation time and effort, rather than tool prices, remain the main cost of embedding AI.