UK businesses fall behind in cloud & AI technology use

New data indicates that UK businesses are falling behind in their adoption of cloud-based and AI technologies, which could be stunting their development and growth.

The 2024 OneAdvanced ninth Annual Trends Report reveals that only 35% of UK businesses fully utilise cloud-based solutions in their operations. Additionally, a mere 14% of these enterprises are implementing AI at a strategic level.

With 44% of UK business leaders prioritising efficiency and productivity, the reluctance to fully integrate technology is seen as a risk to development, according to the findings. This data was gathered from over 6,000 senior executives across various British businesses.

The study, conducted in September 2024, further notes an increase in businesses managing both cloud and on-premise systems, rising from 36% last year to 42% this year.

Despite 85% of leaders acknowledging the benefits of well-implemented AI, nearly half (48%) have either not attempted AI integration or experienced failures in their AI initiatives.

Andrew Henderson, Chief Technology Officer at OneAdvanced, commented, "Business growth requires the right infrastructure and software services to be in place. It's not at all surprising that so many leaders say that efficiency and productivity are their top priorities, but to find that so few are actively embracing the technology and services that will allow them to grow is quite astonishing."

He highlighted the underutilisation of cloud technology, stating, "Cloud solutions are one example of where British businesses are lagging. Only a third of businesses are leveraging a complete cloud approach, and more businesses are juggling both cloud and on-premise this year than last year. This is a complex approach to systems management that prevents businesses from truly realising their growth potential."

Henderson also pointed out the slow AI adoption, adding, "Meanwhile, slow uptake on AI projects – coupled with a high rate of failure – could put British businesses at a disadvantage on the global stage. Many businesses are currently implementing AI for fear of missing out rather than to address customer needs. Artificial intelligence has amazing potential to solve productivity concerns and elevate customer experience innovation, but without the proper adoption of cloud solutions and a lack of availability of reliable data, businesses will continue to find it hard to realise the full potential of AI tech."

He advised businesses to be proactive, stating, "This is not a time for sitting back. If businesses are not moving, they are losing ground. They should experiment and then make practical investments in the technology, where aligned to clear customer outcomes. This will enable their growth plans to become a reality, boost the country's knowledge and skills in this emerging area while supercharging the economy, cementing our place on the global business stage."

The report indicates that 15% of business leaders are unsure or lack confidence in their technological infrastructure's ability to support growth goals, with 66% planning upgrades to their digital systems.

Julian David, Chief Executive Officer of techUK, remarked, "Investing in digital transformation cannot be optional for British business success. Technology can drive growth and support key objectives such as cybersecurity and sustainability, so business leaders will be looking to their CTOs to guide them to the right choices."

He added, "It is concerning that so many businesses are struggling to modernise their technology solutions and update legacy systems. Underinvestment in this area is holding back UK economic growth. Leaders in all sectors must grasp the opportunity to accelerate digital transformation and empower their employees with agile data-driven tools that can boost productivity and help their organisations thrive."