A recent report by Amazon Web Services (AWS), conducted in collaboration with independent consultancy Strand Partners, reveals a significant acceleration in artificial intelligence (AI) adoption across UK businesses. The study indicates that AI adoption in the UK has surged by 33% over the past year, surpassing the European average growth rate of 27%. AI adoption in UK

Currently, over half (52%) of UK businesses have integrated AI into their operations, a notable increase from 39% in the previous year. Remarkably, this translates to at least one UK business adopting AI approximately every 60 seconds.

Emergence of a Two-Tier AI Economy

Despite the overall growth, the report identifies a developing divide between startups and large enterprises in AI adoption. While 55% of large enterprises report consistent use of AI—up from 41% last year—their application of the technology remains primarily focused on basic efficiency improvements. In contrast, 59% of startups have embraced AI, with 36% actively developing new AI-driven products and services, compared to 25% of large enterprises. Additionally, 31% of startups have established comprehensive AI strategies, whereas only 15% of large enterprises have done the same. This disparity raises concerns that larger businesses may miss out on the transformative benefits of AI, potentially impacting the UK’s broader economic growth.

Addressing Barriers to AI Adoption

The report highlights the digital skills gap as the most significant barrier to AI adoption. Currently, 38% of businesses cite limited access to digital skills as a hindrance, an increase from 29% the previous year. Furthermore, 46% of UK businesses report that a lack of digital skills has slowed their operations, up from 32% last year. With AI literacy expected to be a requirement in nearly half (47%) of new UK jobs within the next three years, only 27% of businesses feel adequately prepared. On average, it takes UK businesses 5.5 months to hire employees with the necessary digital skills, and 41% struggle to find such talent.

AWS’s Commitment to UK Economic Growth

In response to these challenges, AWS has announced plans to invest £8 billion in the UK between 2024 and 2028, focusing on building, operating, and maintaining data centres. This investment is projected to contribute £14 billion to the UK’s GDP over the next five years and support an average of over 14,000 full-time equivalent jobs annually in local businesses. AWS encourages UK policymakers and industry leaders to implement the recommendations outlined in the UK AI Opportunities Action Plan, which includes:

1. Empowering Businesses: Providing resources and talent to accelerate AI adoption, fostering a cycle of investment, innovation, and workforce development.
2. Scaling AI in Public Services: Leveraging AI to digitize public sector services, potentially unlocking over £45 billion per year in savings and productivity benefits. AI adoption in UK
3. Supporting Startups: Ensuring startups have access to the necessary funding to increase AI adoption and drive business growth.

Phil Le-Brun, Director of Enterprise Strategy at AWS, emphasizes the urgency of addressing these barriers:

“The UK is experiencing an AI revolution that is outpacing historical technology trends. While this is encouraging, we must tackle key adoption challenges—most notably the digital skills gap—to prevent a two-tier AI economy and ensure all businesses can benefit from AI’s transformative potential.”