**London**: Research by SAP reveals that digital immaturity in skills, data, and infrastructure is hindering AI adoption among UK businesses. While many firms recognise AI’s potential for growth and efficiency, challenges like legacy technology and talent shortages remain significant obstacles to implementation.
Research conducted by SAP highlights significant barriers to artificial intelligence (AI) adoption in the UK, attributing these challenges to digital immaturity in skills, data, and infrastructure. The study reveals that a prevailing focus on growth over enhanced customer experiences is evident among UK businesses, with 80% prioritising growth while 37% indicate they will leverage technology to assist in managing expenditures and boosting automation.
The findings underline the pressing need for high-growth organisations to embrace AI, with 92% of surveyed businesses categorising the adoption of standard AI applications as either a high or medium priority within the next year. Similarly, 91% are actively considering emerging applications, such as generative AI. Notably, 39% of these organisations are prioritising AI-driven business automation and half are investing in advanced analytics to enhance their decision-making processes.
AI’s strategic importance in overcoming broader economic challenges is underscored by the fact that 91% of high-growth firms see addressing supply chain issues as a critical focus. A substantial 39% has identified supply chain disruptions as one of the top three business challenges anticipated for 2025. As a response to these issues, over one-third (37%) of enterprises are turning towards AI and automation to enhance their resilience amid economic uncertainties.
Simon Duckett, chief digital officer at Sonnedix, a global renewable energy producer and SAP customer, elaborated on the transformative potential of AI in the sector. “AI is revolutionising the renewable energy sector, driving smarter decisions and operational efficiency to support growth and resilience,” he stated. Duckett emphasised that AI’s predictive capabilities and advanced analytics empower companies to better manage their supply chains, adapt to changing economic conditions, and identify new opportunities.
However, the study reveals that despite these aspirations, digital immaturity remains a formidable challenge to AI integration. Legacy technology is noted as a significant barrier by 27% of high-growth organisations, complicating efforts to incorporate modern solutions into existing outdated systems. Additionally, a talent shortage is exacerbating the issue, with 34% of organisations finding it difficult to attract and retain skilled professionals necessary for effective AI deployment. To address this, 40% of respondents are now focusing on skills development as a crucial element of their comprehensive growth strategy.
Data deficiencies are also impeding progress, with one-third of respondents indicating that inadequate datasets are obstructing AI model training. Furthermore, 34% cite poor data quality and limited planning tools as significant hurdles in their pursuit of AI.
Wesley Doyle, head of new business at SAP UKI, pointedly remarked, “Addressing barriers to growth, like digital immaturity, must be a priority for the UK’s high-growth organisations if they wish to reach their potential.” He further articulated that many organisations view AI as a catalyst for business agility, resilience, efficiency, and large-scale innovation. Looking ahead to 2025, Doyle asserted that companies willing to make daring investments in AI will be better positioned to thrive in a data-centric economy and play a pivotal role in shaping the UK’s growth narrative.
Source: Noah Wire Services
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