UK businesses report sharp rise in AI use

The self-reported use of AI among UK businesses with 10 or more employees has increased from around 12% to around 35% since late 2023, according to the Office for National Statistics. Larger firms remain more likely to use the technology, while adoption varies sharply by sector, with information and communication at 58% and construction at 13%.

Adoption remains relatively shallow. The average number of AI technologies used by adopting businesses has risen only from around 1.4 to 1.6, suggesting limited transformation so far. Large language models were the most widely used AI technology in June 2026 at 18%, followed by visual content creation at 16%, data processing using machine learning at 12%, and image processing using machine learning at 6%.

Businesses most often use AI to improve operations, with Close to 60% reporting that purpose. Most firms say AI has not changed overall workforce headcount, although businesses using it for operational improvements were more likely to report reductions. Barriers remain uneven: 41% of businesses with 10 or more employees reported no barriers, while lack of expertise and cost were common constraints. Around 62% of firms citing expertise gaps said they were training or retraining staff.