What is the degree of AI Adoption in UK businesses? What are the main barriers? In 2025, Technopolis UK and IFF Research were tasked with answering those questions, by The Department for Science, Innovation and Technology (DSIT).
The research was conducted between February and May 2025, using a survey of 3,500 businesses and 100 in-depth interview.
Key findings from the report include:
Current AI Adoption Landscape
- Only 1 in 6 UK businesses (16%) currently uses at least one AI technology, with a further 5% planning to adopt in the near future. The majority (80%) are neither using nor planning to use AI at this stage.
- Larger and mid-sized firms are more likely to be AI adopters, particularly in information & communication, finance & real estate, and business services sectors.
What AI Is Being Used For
- Among adopters, 85% use natural language processing and text generation tools, with agentic AI technologies being the least used.
- On average, 30% of staff within AI-using organisations interact with AI, and 53% report constant use.
Barriers to Adoption
- The top barriers include a lack of identified need and limited AI skills and expertise. Ethical concerns, high costs, and unclear regulation were also frequently cited.
- Firms expressed the need for government support including funding, training, and clearer regulation — to increase AI uptake.
Impact and Future Plans
- Among businesses currently using AI, 75% report improved workforce productivity and 57% have developed new or improved processes as a result.
- However, the majority (77%) have not yet seen a measurable rise in revenue since adopting AI.
Perceptions of trust and safety in AI
Perceptions of trust and safety in AI are mixed and cautious: they see the potential benefits of AI and are open to adopting it, but have real concerns about data safety, output accuracy, ethical implications, and the need for human oversight especially where errors could cause harm.
This research provides vital insight into the scale and nature of AI adoption across the UK economy. It will help inform future policy and support measures to ensure responsible and impactful AI uptake across business sectors.
For full details, the AI Adoption Research report is available here.
For more information contact: Cristina Rosemberg and Adebisi Adewusi
