The Value of AI in the UK: Growth, people & data
SAP partnered with Oxford Economics on this research report which looks at the value of AI in the UK. It sets out where businesses are today, where they risk falling behind, and what actions can help them move forward with confidence. Read this report to understand the concrete steps that you can take to ensure AI will deliver lasting value for your organisation, your people and the UK economy. Download the Document
SAP partnered with Oxford Economics on this research report which looks at the value of AI in the UK. It sets out where businesses are today, where they risk falling behind, and what actions can help them move forward with confidence. Read this report to understand the concrete steps that you can take to ensure AI will deliver lasting value for your organisation, your people and the UK economy. The value of AI in the UK:
Growth, people & data
SAP and Oxford Economics
October 2025
Growth, people & data
SAP and Oxford Economics
October 2025
2 | 12The value of AI in the UK: Growth, people & data
Introduction
Artificial intelligence (AI) represents one of the most
significant opportunities for UK businesses in a
generation. It has the potential to reshape how
organisations operate, how people work, and how
industries grow. From improving customer experiences
and driving innovation, to freeing employees from
repetitive tasks and creating entirely new products and
services, AI is set to become a defining force for business
competitiveness and economic growth. Realising this
potential will depend not just on technology, but on how
organisations empower their people, modernise their data,
and adapt their cultures to work in new ways.
Our research shows that while the UK has world-class
industries, a service-led economy that runs on data and
knowledge, and a strong appetite for innovation, AI
adoption remains inconsistent. Companies are spending
heavily, although often without a clear and unified strategy
for how AI will evolve their business models and
strengthen long-term performance.
There is also a people challenge. Employees are eager to
use AI, however many lack the training, confidence, and
support to do so safely and responsibly. To build an
AI-ready workforce, it’s about more than just managing
risk, and requires equipping people with the skills, tools,
and culture to innovate, experiment, and thrive alongside
this transformative technology.
Then there is data. Without accurate, connected, and
auditable data, AI cannot work as intended. Businesses
across all sectors - including growing industries and those
that generate the greatest economic value for the UK - face
challenges in bringing together the right data foundations.
That threatens to hold back the gains that could matter
most for our economy.
AI can act as a catalyst for business transformation and
enable new ways of working, create opportunities for
innovation, and strengthen the UK’s economy. This can
only happen when investment is matched by a clear
strategy, solid data foundations, and a commitment to
upskilling people.
At SAP, we are proud to partner with our customers to
bring AI, data, and applications together to power the
next generation of enterprise transformation, and help
our customers and their teams stay ready for what’s next.
This report sets out where UK businesses are today, where
they risk falling behind, and what actions can help them
move forward with confidence. With AI reimagining the
world around us, and transforming the future of business
and society, this report sets out to help leaders identify
the concrete steps that will define how AI will deliver
lasting value for their organisation, their people, and
for the UK economy.
Leila Romane
Managing Director, SAP UK & Ireland
2 | 12
Disclaimer
This publication draws on survey data from research commissioned by SAP and conducted by Oxford Economics, combined
with supplementary insights from SAP subject matter experts, customers, and ecosystem partners. While care has been taken
to ensure accuracy, some perspectives represent interpretation and experience rather than statistical findings.
Introduction
Artificial intelligence (AI) represents one of the most
significant opportunities for UK businesses in a
generation. It has the potential to reshape how
organisations operate, how people work, and how
industries grow. From improving customer experiences
and driving innovation, to freeing employees from
repetitive tasks and creating entirely new products and
services, AI is set to become a defining force for business
competitiveness and economic growth. Realising this
potential will depend not just on technology, but on how
organisations empower their people, modernise their data,
and adapt their cultures to work in new ways.
Our research shows that while the UK has world-class
industries, a service-led economy that runs on data and
knowledge, and a strong appetite for innovation, AI
adoption remains inconsistent. Companies are spending
heavily, although often without a clear and unified strategy
for how AI will evolve their business models and
strengthen long-term performance.
There is also a people challenge. Employees are eager to
use AI, however many lack the training, confidence, and
support to do so safely and responsibly. To build an
AI-ready workforce, it’s about more than just managing
risk, and requires equipping people with the skills, tools,
and culture to innovate, experiment, and thrive alongside
this transformative technology.
Then there is data. Without accurate, connected, and
auditable data, AI cannot work as intended. Businesses
across all sectors - including growing industries and those
that generate the greatest economic value for the UK - face
challenges in bringing together the right data foundations.
That threatens to hold back the gains that could matter
most for our economy.
AI can act as a catalyst for business transformation and
enable new ways of working, create opportunities for
innovation, and strengthen the UK’s economy. This can
only happen when investment is matched by a clear
strategy, solid data foundations, and a commitment to
upskilling people.
At SAP, we are proud to partner with our customers to
bring AI, data, and applications together to power the
next generation of enterprise transformation, and help
our customers and their teams stay ready for what’s next.
This report sets out where UK businesses are today, where
they risk falling behind, and what actions can help them
move forward with confidence. With AI reimagining the
world around us, and transforming the future of business
and society, this report sets out to help leaders identify
the concrete steps that will define how AI will deliver
lasting value for their organisation, their people, and
for the UK economy.
Leila Romane
Managing Director, SAP UK & Ireland
2 | 12
Disclaimer
This publication draws on survey data from research commissioned by SAP and conducted by Oxford Economics, combined
with supplementary insights from SAP subject matter experts, customers, and ecosystem partners. While care has been taken
to ensure accuracy, some perspectives represent interpretation and experience rather than statistical findings.
3 | 12The value of AI in the UK: Growth, people & data
Executive summary
AI investment, per organisation, in the
UK is rising fast
UK businesses, on average, are spending £15.94 million on
AI this year, with companies expected to increase their AI
investments by an average of 40% in the next two years.
Businesses also anticipate strong returns, with return on AI
investment (ROI) forecast to almost double from 17% in
2025 to 32% in 2027.
AI investment remains fragmented
Only 7% of UK businesses are investing in AI based on
strategic, holistic prioritisation, while most rely on ad hoc
pilots or department-led projects. That lack of focus,
combined with inadequate data foundations, risks holding
back the UK’s productivity potential.
Employees are eager to use AI, but
training is not keeping pace
Over two-thirds of UK businesses report ‘shadow AI’ use,
and 60% say staff have not completed comprehensive
training.
Strategic AI is already helping
UK businesses see results
With AI, UK businesses are already seeing better insights
(36%), stronger customer engagement (34%), and faster
time-to-value (31%). With the right strategy, data, and skills,
AI can help the UK move beyond efficiency gains to real
growth and competitiveness.
Executive summary
AI investment, per organisation, in the
UK is rising fast
UK businesses, on average, are spending £15.94 million on
AI this year, with companies expected to increase their AI
investments by an average of 40% in the next two years.
Businesses also anticipate strong returns, with return on AI
investment (ROI) forecast to almost double from 17% in
2025 to 32% in 2027.
AI investment remains fragmented
Only 7% of UK businesses are investing in AI based on
strategic, holistic prioritisation, while most rely on ad hoc
pilots or department-led projects. That lack of focus,
combined with inadequate data foundations, risks holding
back the UK’s productivity potential.
Employees are eager to use AI, but
training is not keeping pace
Over two-thirds of UK businesses report ‘shadow AI’ use,
and 60% say staff have not completed comprehensive
training.
Strategic AI is already helping
UK businesses see results
With AI, UK businesses are already seeing better insights
(36%), stronger customer engagement (34%), and faster
time-to-value (31%). With the right strategy, data, and skills,
AI can help the UK move beyond efficiency gains to real
growth and competitiveness.
4 | 12The value of AI in the UK: Growth, people & data
Investment is rising but strategy is
fragmented.
UK businesses, on average, are spending
£15.94 million on AI this year, including
software, infrastructure, talent, and consulting,
with companies expected to increase their
AI investments by an average of 40% in the
next two years.
The UK is lagging behind China (£31.59
million) and the US (£27.46 million) in average
spend per business. UK leaders expect that
investment to deliver a return of 17% in
2025, approximately £2.73 million, rising to
32%, approximately £7.53 million in 2027.
But the evidence from UK organisations shows that
adoption is still uneven. Too much of today’s spend is
fragmented and ad hoc. Data readiness is inconsistent,
particularly in business functions including finance, legal,
and HR. Employees are eager to use AI, but training and
governance frameworks have not caught up, creating risks
around shadow AI.
UK organisations are committing serious investment to AI,
but without a long-term, robust strategy that brings
together data, people, governance, and the wider
ecosystem of partners, they risk missing out on the full
value of the technology. Realising that value is not a
single milestone. It’s an ongoing process that evolves as
capabilities, regulations, and customer expectations
change.
4 | 12
The reality of AI in UK business today
Most are optimistic about pace, with 78%
expecting positive ROI within one to three
years, and more than half saying AI delivers
returns faster than other technologies.
In just two years, AI has shifted from
experimentation in side projects to being a
key part of board-level discussions about
growth, competitiveness, and resilience.
Investment is rising, optimism is strong, and
most business leaders believe AI can deliver
a return faster than other technologies.
Investment is rising but strategy is
fragmented.
UK businesses, on average, are spending
£15.94 million on AI this year, including
software, infrastructure, talent, and consulting,
with companies expected to increase their
AI investments by an average of 40% in the
next two years.
The UK is lagging behind China (£31.59
million) and the US (£27.46 million) in average
spend per business. UK leaders expect that
investment to deliver a return of 17% in
2025, approximately £2.73 million, rising to
32%, approximately £7.53 million in 2027.
But the evidence from UK organisations shows that
adoption is still uneven. Too much of today’s spend is
fragmented and ad hoc. Data readiness is inconsistent,
particularly in business functions including finance, legal,
and HR. Employees are eager to use AI, but training and
governance frameworks have not caught up, creating risks
around shadow AI.
UK organisations are committing serious investment to AI,
but without a long-term, robust strategy that brings
together data, people, governance, and the wider
ecosystem of partners, they risk missing out on the full
value of the technology. Realising that value is not a
single milestone. It’s an ongoing process that evolves as
capabilities, regulations, and customer expectations
change.
4 | 12
The reality of AI in UK business today
Most are optimistic about pace, with 78%
expecting positive ROI within one to three
years, and more than half saying AI delivers
returns faster than other technologies.
In just two years, AI has shifted from
experimentation in side projects to being a
key part of board-level discussions about
growth, competitiveness, and resilience.
Investment is rising, optimism is strong, and
most business leaders believe AI can deliver
a return faster than other technologies.
5 | 12The value of AI in the UK: Growth, people & data
We’re seeing that organisations get
the best results when they start with
clear business outcomes in mind.
It’s about asking ‘What problem are
we solving?’. The most successful
implementations also focus on
change management alongside
technical deployment – because
even the most sophisticated AI is
only as valuable as a business’
ability to adopt and scale it
effectively.
”
Umang Paw, CTO at PwC UK
Working with NTT Data and SAP
has shown us how quickly AI can
move from an idea to something
that genuinely changes how we
work. We’ve focused on solving real
problems that make life easier for
our customers and our teams.
Automating sales orders and
predicting demand are already
improving services and unlocking
new streams of revenue. Starting
small and proving value early gave
us the confidence to scale fast. AI is
becoming a huge part of how we
grow.
Jon Curtis, Financial Systems
Manager at Aspen Pumps
Some of those returns are forecast to
come from agentic AI. The average UK
business expects 11% of its AI returns to
come from intelligent agents within two
years, equivalent to £2.66 million. These
systems are designed to work across
functions, for example linking finance,
supply chain, and workforce planning.
Despite this momentum, most AI
programmes remain fragmented. 42%
describe their investment as piecemeal,
37% as department led, and 15% as ad
hoc. Only 7% are pursuing AI investment
through a strategic, enterprise-wide plan.
That gap may explain why 70% of UK
businesses say they are unsure whether
AI is delivering its full potential.
”
”
”
5 | 12
We’re seeing that organisations get
the best results when they start with
clear business outcomes in mind.
It’s about asking ‘What problem are
we solving?’. The most successful
implementations also focus on
change management alongside
technical deployment – because
even the most sophisticated AI is
only as valuable as a business’
ability to adopt and scale it
effectively.
”
Umang Paw, CTO at PwC UK
Working with NTT Data and SAP
has shown us how quickly AI can
move from an idea to something
that genuinely changes how we
work. We’ve focused on solving real
problems that make life easier for
our customers and our teams.
Automating sales orders and
predicting demand are already
improving services and unlocking
new streams of revenue. Starting
small and proving value early gave
us the confidence to scale fast. AI is
becoming a huge part of how we
grow.
Jon Curtis, Financial Systems
Manager at Aspen Pumps
Some of those returns are forecast to
come from agentic AI. The average UK
business expects 11% of its AI returns to
come from intelligent agents within two
years, equivalent to £2.66 million. These
systems are designed to work across
functions, for example linking finance,
supply chain, and workforce planning.
Despite this momentum, most AI
programmes remain fragmented. 42%
describe their investment as piecemeal,
37% as department led, and 15% as ad
hoc. Only 7% are pursuing AI investment
through a strategic, enterprise-wide plan.
That gap may explain why 70% of UK
businesses say they are unsure whether
AI is delivering its full potential.
”
”
”
5 | 12