AI adoption soars in the UK but skills gap looms

AI adoption in the UK has grown rapidly, rising by 33% over the past year. According to a new report from AWS, 52% of UK businesses are now using AI technologies, up from 39% in the previous year.

Adoption has become so widespread that a business implements new AI tools or strategies every 60 seconds. The benefits are becoming more obvious too, with 92% of AI adopters reporting revenue increases, compared with 64% in 2024.

However, the report highlights a growing divide in AI readiness. While large enterprises and startups share similar adoption rates of 55% and 59% respectively, startups appear better prepared for technological shifts.

Twice as many startups (31%) have developed comprehensive AI strategies compared with larger companies (15%), suggesting agility and forward planning remain crucial.

Despite the progress, serious challenges remain. Skills shortages are slowing businesses down, with nearly 38% citing a lack of expertise as a major barrier, up from 29% last year.

Almost half report delays in hiring qualified talent, with recruitment taking an average of five and a half months. As AI becomes more integrated, it is expected that 47% of new jobs will require AI literacy in the next three years.

In response, AWS has launched a UK initiative to train 100,000 people in AI skills by 2030. The programme includes partnerships with universities such as Exeter and Manchester.

According to the UK Government’s own projections, improved AI adoption could unlock £45 billion per year in public sector savings and productivity. Still, AWS warns that unless skill gaps are addressed, the country risks developing a two-tier AI economy.

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