Lack of AI strategy to address business model disruption may hold back UK companies, despite country’s AI leadership prospects, report finds

Microsoft has launched its ‘Maximising the AI Opportunity’ report, discussing the UK’s development and use of Artificial Intelligence (AI). The report concludes that the UK has a clear opportunity to “lead the way in the development and use of AI and a willingness among leaders and employees to embrace AI in their working lives”.

According to the report UK organisations risk falling behind oversees competition due to a lack of AI strategy. The research reveals that, in the face of significant disruption, 41 per cent of companies believe their current business model will cease to exist within the next 5 years. Also, more than half (51 per cent) of business leaders surveyed revealed they do not have an AI strategy in place to address these challenges.

The study found that companies that have started to use AI technologies are already outperforming organisations that have not by 5%, a substantial boost to the bottom line. These organisations were found to be more productive, have higher performance and experience better business outcomes.  

The report includes significant contributions from a host of experts from the broader industry, including Lord Timothy Clement-Jones, Chairman of the House of Lords Select Committee, Clare Barclay, Microsoft UK COO and Transport for London. The study, was conducted in partnership with Goldsmiths, University of London and YouGov and based on a survey of more than 1,000 business leaders and 4,000 employees.

The study urged business leaders to “take a principled approach by establishing underlying values, ethics and commitments”. It also revealed that those organisations that have already adopted an ethical approach to the use of AI are outperforming those that aren’t by 9 per cent.   

It also said that “the gap between attitude and action when it comes to AI could see the nation miss out. Indeed, while 52 per cent of employees believe using AI to automate tasks can create time for more meaningful work, over half (51 per cent) are not using any types of AI to perform tasks at work.” 

Lord Clement-Jones, chairman, House of Lords Select Committee on AI said, “Without doubt, artificial intelligence can provide a great opportunity for British society and the economy. Today the UK enjoys a position of AI innovation, so as we enter a crucial stage in its development and adoption, the country has a clear opportunity to be a world leader. For this, an ethics-backed partnership between business academia and government will be pivotal.”   

Cindy Rose, chief executive, Microsoft UK said, “How society, business and people adapt to AI will become one of the most pressing considerations of this generation and the next. Only by applying AI in the right way can we unlock its extraordinary potential for good. It is our firm belief at Microsoft that adopting a human-centric approach can help organisations of all shapes, sizes, and sectors use AI to positively impact their businesses, employees, and customers alike. But success tomorrow requires action today – organisations must act now to maximise the AI opportunity.”   

Clare Barclay, chief operating officer, Microsoft UK said, “AI represents a huge opportunity, but only if UK organisations embrace its application in the right way. AI is not about making UK businesses leaner, it’s about how we use the technology to make them stronger. In doing so, we can make our work more meaningful and boost UK competitiveness.”