Less than half of UK businesses are adequately training their employees in artificial intelligence (AI) usage, despite significant investment in the technology. A recent report by SAP, titled Value of AI in the UK: Growth, People & Data, conducted in partnership with Oxford Economics, highlights a pressing issue: only 40% of firms provide comprehensive AI training to their staff. This lack of preparation raises concerns about unauthorized AI tool usage, commonly referred to as shadow AI.
The report reveals that a staggering 68% of businesses believe their employees occasionally use unapproved AI tools in their daily activities. According to Katie King, CEO of AI in Business, this trend should not be viewed solely as a negative. “Shadow AI isn’t a sign of resistance, but a sign of enthusiasm,” she stated. King emphasizes that employees are eager to utilize these tools, but their pace often outstrips their organizations’ ability to provide the necessary support. She advocates for organizations to harness this enthusiasm by granting access to approved tools, establishing clear guidelines, and offering role-specific training.
While business leaders recognize AI’s potential to deliver quicker returns than other technologies, the report indicates that only 7% of organizations have implemented a company-wide AI strategy. Additionally, around 70% of businesses are engaged in reskilling or upskilling their workforce to bridge the AI skills gap. Yet, many express concerns that their progress is lagging behind the rapid pace of AI adoption.
Leila Romane, managing director of SAP UK&I, stressed the importance of integrating AI into long-term business strategies. “AI is fast becoming a key driver of growth for UK businesses,” she noted. Romane emphasized that organizations must establish solid data foundations and provide employees with the resources and space to experiment safely. This approach fosters a culture of responsible AI adoption from the outset.
Investment in AI is on the rise. According to SAP’s report, UK businesses are projected to spend an average of £15.94 million on AI in 2023, with expected increases of approximately 40% over the next two years. Firms anticipate strong returns, with projected ROI rising from 17% in 2025 to 32% in 2027. Organizations have reported improved insights (36%), enhanced customer engagement (34%), and faster time-to-value (31%) as a result of AI implementation in the past year.
Despite these promising figures, only 7% of UK businesses are investing in AI through a strategic, cohesive approach. Most companies rely on ad-hoc pilots or departmental initiatives, leading to a fragmented adoption process. The report warns that this disjointed strategy may hinder many businesses from fully leveraging AI’s potential. “Too much of today’s spend is fragmented and ad-hoc. Data readiness is inconsistent, particularly in business functions including finance, legal, and HR,” the report states.
The findings underscore the urgency for UK organizations to develop a robust, long-term strategy that integrates data, personnel, governance, and partnerships. Without this comprehensive approach, they risk missing out on the full value of AI technology.
As businesses navigate this evolving landscape, the call for immediate action is clear: to effectively harness AI’s potential, UK firms must prioritize employee training and establish responsible frameworks for tool usage.
