The government wants the UK to lead the way in artificial intelligence (AI) capacity in Europe, and research from Barclays Corporate Banking shows that business leaders recognise the need to invest in AI and emerging technology.
This week, Google, Microsoft, Nvidia, Oracle and OpenAI announced they are building out significant datacentre capacity in the UK. The increase in compute capacity offered by these datacentres is a fundamental part of Labour’s AI plan of action, providing AI accelerations to drive business opportunities and streamline digitally enabled public services.
To take advantage of this compute capacity, businesses will need to spend money on technology and invest in skills development. A poll of 1,000 businesses, conducted by Opinium Research on behalf of Barclays, found that on average, businesses are spending almost £236,000 on AI and emerging technologies.
The Barclays business prosperity index, which combines the poll with economic modelling produced in partnership with the Centre for Economics and Business Research (Cebr), shows that large businesses with more than 250 employees are spending an average of £400,000 on AI and emerging technologies.
The figure for medium-sized businesses with between 50 and 249 employees is £225,500 on average, while small companies with between 10 and 49 employees are spending around £125,000.
“It’s encouraging to see an intent to invest from UK businesses, with many turning that into action,” said Matt Hammerstein, chief executive of Barclays UK Corporate Banking. “Against a backdrop of global uncertainty, there’s more to do to build confidence in the UK as a place for businesses to grow and scale.
“Our research suggests that AI is becoming a key tool to drive innovation, encourage investment and upskilling to lift productivity, and build confidence in the UK as a global business hub.”
According to Barclays, the results of the survey show that despite ongoing global economic challenges, UK firms are accelerating AI adoption and upskilling their workforce to drive innovation and growth.
The businesses polled are also planning to increase overall investment by 5.5% over the next 12 months, to provide staff training and development (42%), improved digital products (37%), and research and development (37%).
However, Barclays reported that 39% of the businesses surveyed say they face a digital and AI skills shortage.
With the government’s UK-US Tech Prosperity Deal committing billions of pounds into AI infrastructure investment, the tech industry is calling for greater support to develop AI and digital technology skills.
Melissa Di Donato, chair and CEO of software business Kyriba, who sits on the Department for Business and Trade’s SME Digital Adoption Taskforce, said: “UK firms need to rapidly upskill their workforces, build stronger digital leadership at board level, and take up proven technologies like cloud, AI and automation with the same urgency we see from global tech leaders.
“And as the recent SME Digital Adoption Taskforce report urges, government and industry should expand access to practical support and targeted incentives so that small and mid-sized businesses can invest and scale with confidence,” she said. “This is the time to seize the moment and convert big tech’s capital into the productivity gains our economy needs.”
