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Thursday, October 02, 2025
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AI Boosts Productivity and Profitability For UK Businesses

Of the 59% of UK companies currently using AI, more than three quarters say it has improved their productivity (82%) or profitability (76%).

Productivity benefits have been seen most widely among retailers (84%), while manufacturers have seen the most widespread profitability increases (79%). Regionally, businesses in Northern Ireland have seen the most widespread productivity benefits (95%), while firms in the North West has seen the widest impact in terms of profitability (89%).

Looking ahead, 56% of UK businesses plan to make new investments in AI over the next year, with a quarter (25%) of non-adopters planning to use AI for the first time.

Over a third (37%) of businesses are looking to start or increase their AI investment to win new customers. Firms said the biggest drivers of AI investment were productivity (46%) and profitability (41%), but many are also turning to the technology to attract new customers (37%) and compete with larger rivals (31%). To support their AI adoption plans, one in six UK businesses (17%) plan to create new AI-specific roles over the next 12 months.

However, barriers remain as the cost of the technology (42%), a lack of AI-specific skills (32%) and concerns over data privacy and energy consumption (31%) are still holding some businesses back. Firms said having a better understanding of what AI is and how it could specifically benefit their business (48%), along with examples of how other companies are using it successfully (16%), would make them more likely to increase their AI investments.

Hann-Ju Ho, Senior Economist at Lloyds says: “AI is enhancing two pillars of business growth: productivity and profitability. Our data suggests that up to a quarter of businesses not currently using AI adopt it by this time next year, with significant degrees of follow-on investment planned from current adopters. As businesses explore how to unlock more of AI’s benefits, they will look to others for inspiration and support. Collaboration and experience-sharing will play a central role in fully capitalising on the technology’s potential while keeping up to date with the latest iterations.”

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