Costs and skills cited as biggest barriers for businesses adopting AI

A new survey shows that while nearly half of SMEs are using AI, many find it difficult to implement due to various barriers.

Costs and skills cited as biggest barriers for businesses adopting AI

A new survey shows that more than half of UK businesses have created new jobs from AI, with 58% planning to invest in AI skills.

AI Essential for Business Competitiveness

According to the report from Lloyds Banking Group, AI has the potential to be as transformative for businesses as the internet was a generation ago.

This is creating a situation whereby failing to adopt AI will likely put firms at a competitive disadvantage – nearly six in 10 organisations agree with this statement.

Interestingly, larger firms were more likely to see AI as essential for future success; 73% of businesses with a turnover of £10m or more said failure to adopt AI would result in a competitive disadvantage, compared with 54% of businesses with a turnover below £1m.

Barriers to AI Adoption 

With all this in mind, many smaller businesses will be at a disadvantage, with just over half not currently using AI.

The research highlighted several barriers that could slow AI adoption, which included:

• Costs (cited by 18%)
• Data quality (17%)
• Access to skills (17%)

Domestic-only firms were more likely to point to cost as a barrier (23%), while international firms were more likely to reference data quality (19%).

Businesses Should Combine Human Ingenuity With the Power of AI

Amanda Murphy, CEO of Lloyds Business and Commercial Banking, said, “The businesses seeing the greatest benefit are treating it not simply as a technology investment, but as a catalyst for broader transformation across their organisation.

“Success will depend on more than access to technology. It will come from building the skills, culture and confidence to use it effectively. The businesses that can combine human ingenuity with the power of AI will create a meaningful advantage in productivity, innovation and growth.

“As adoption accelerates, the greatest challenge for many organisations may not be keeping pace with technology but ensuring they have the capabilities to adapt alongside it. Supporting businesses to navigate that transition will be critical if the UK is to fully capture the economic opportunity AI presents.”

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