British businesses spent nearly £236,000 each on artificial intelligence (AI) in the past year as they look to get ahead in the race to embrace the new technology, according to a report.
The latest Barclays Business Prosperity index survey found that large corporates with more than 250 workers invested the most – at an average of £400,000 on AI and emerging technologies over the past 12 months – compared with £225,500 from medium firms and £125,250 from small companies.
More than two thirds – 68% – of all businesses are also looking to increase this spend in the coming year as the AI revolution shows no sign of slowing.
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The poll of 1,000 decision makers at firms found that almost nine in 10 companies are turning to AI to solve key business issues, such as energy costs and infrastructure – with 32% having already hired or currently hiring for AI-focused roles and 42% planning to do so.
Away from AI, firms are generally planning to ramp up investment by 5.5% in the next year, which is up from 3.8% in the first quarter, on areas such as staff training and development, digital offerings and research and development (R&D).
But over half of firms surveyed (55%) in a separate poll by Barclays last month said they are delaying investment decisions until after the autumn Budget, which has now been confirmed for November 26.
While the Budget is putting spending on hold, the report suggests this will be temporary, with 43% expecting to increase investment on the back of it.
Matt Hammerstein, chief executive of Barclays UK corporate banking, said: “It’s encouraging to see an intent to invest from UK businesses, with many turning that into action.”
“Our research suggests that AI is becoming a key tool to drive innovation, encourage investment and upskilling to lift productivity and build confidence in the UK as a global business hub,” he added.
Investment decisions on ice include facility upgrades; R&D, new equipment, machinery or vehicles; and staff training, according to the report.
It showed that business tax cuts are top of the Budget wish list, with 45% calling for reductions.
Two in three (65%) of those surveyed say that investment incentives in the Budget would also increase confidence, while 63% say that this would boosted by measures to reduce the regulatory burden.
