AI Adoption Surges: %67 of UK Businesses are already using AI!

The United Kingdom stands as a global leader in the AI revolution, featuring a flourishing ecosystem of startups, world-class universities, and research institutions. The UK’s AI market, valued at over £16.9 billion, is poised for remarkable growth, expected to reach £803.7 billion by 2035.

Latest AI Trends in the UK

1. Government’s Embrace of AI:
   • The UK takes pride in an AI workforce surpassing 50,000.
   • In 2022, AI made a substantial contribution of £3.7 billion to the economy.
   • Britain boasts twice the number of AI-based companies compared to any other European nation.
2. AI in Health and Social Care:
   • The UK’s health and social care sector anticipates substantial net job gains from AI over the next two decades.
   • The NHS utilizes AI for new diagnostic tools and operational enhancements, including initiatives like the NHS Innovation Accelerator.
3. Government’s AI Strategy:
   • The UK government unveils a visionary AI strategy with a focus on supporting AI research and development, fostering business adoption, developing ethical guidelines, and ensuring positive AI use.
4. Investments and Initiatives:
   • The UK has invested £1 billion in AI research and development, supporting exploration into new AI technologies and applications.
   • A new AI Center of Excellence, providing support to businesses developing and adopting AI, has been launched, offering services like advice, training, and funding.
   • Plans to invest £900 million in a cutting-edge supercomputer, integral to the AI strategy, ensuring capabilities similar to ‘BritGPT.’
5. Workforce Impact:
   • Government estimates suggest a potential displacement of approximately 7% of current jobs in the UK over the next five years, with projections rising to around 18% after 10 years and nearly 30% after 20 years – equivalent to around 2.2 million jobs.

Widely Adopted AI Solutions:

• According to government data, the most widely adopted AI solutions in the UK are centered around data management and analysis (9%), natural language processing and generation (8%), machine learning (7%), AI hardware (5%), and computer vision and image processing and generation (5%).

AI Adoption in Businesses:

• A recent McKinsey survey reveals that 67% of UK businesses already use AI, with an expected increase to 84% by 2025. Businesses of all sizes, including 68% of large companies, 33% of medium-sized companies, and 15% of small companies, have incorporated at least one AI technology, enhancing efficiency, productivity, and customer service.

Growth of AI-Powered Products and Services:

• Marks & Spencer reported an 80% reduction in warehouse accidents with a 10-week trial of computer vision technology.
• Tesco employs computer vision to automate its checkout process, allowing customers to scan and pay without going through a checkout line.
• Ocado utilises computer vision to enhance efficiency and accuracy in picking and packing items in its warehouses.
• Asos leverages computer vision to personalise the shopping experience, recommending products based on past purchases and browsing behaviour.
• Boohoo uses computer vision to detect and prevent fraud, such as customers returning items they have already worn.
• The NHS applies computer vision to develop new diagnostic tools and improve healthcare delivery efficiency, including AI-powered systems for more accurate cancer cell detection in medical images than human doctors.
• TfL utilises computer vision to enhance the safety and efficiency of the London transportation system, including new traffic monitoring systems for real-time vehicle identification and tracking.

Sources:

1. https://www.forbes.com/uk/advisor/business/software/uk-artificial-intelligence-ai-statistics-2023/#:~:text=In%20the%202023%20budget%2C%20the,government%20funding%20towards%20AI%20research.&text=The%20UK%20plans%20to%20invest,build%20its%20own%20%27BritGPT 
2. https://www.gov.uk/government/publications/ai-activity-in-uk-businesses/ai-activity-in-uk-businesses-executive-summary 
3. https://www.theguardian.com/business/2018/jun/28/tesco-shop-and-go-app-till-free-store
4. https://www.forbes.com/sites/bernardmarr/2020/10/30/the-amazing-ways-ocado-uses-artificial-intelligence-and-tech-to-transform-the-grocery-industry/ 
5. https://www.forbes.com/sites/rachelarthur/2017/08/10/asos-visual-search/?sh=19e1440c2b32 
6. https://www.bbc.com/news/business-62140633 
7. https://transform.england.nhs.uk/ 
8. https://haveyoursay.tfl.gov.uk/21522/widgets/62884/documents/37985