LSE-CBI study conveys UK business leaders optimistic about AI

The study, which took place in mid-2024, is useful for understanding how companies use AI technologies at present and what they expect from them in the future.

The results show that over 42% of UK firms surveyed use AI. Such significant uptake suggests increasing recognition of the business potential for innovation and improvement in operational activities, thus showing some optimism about the future of AI among businesses in the United Kingdom.

In terms of specific applications, data analysis and insights were used most frequently—61%. Process automation followed closely, with 54%, while customer service came in third, with 38%.

These findings demonstrate the various ways AI is being incorporated into companies' functions and its ability to increase efficiency and decision-making capacities—something that could be interesting to the audience.

The key reasons for using artificial intelligence were evident, with 70% saying it could increase their productivity. Moreover, improving product or service quality was identified as a significant factor driving implementation decisions by more than half (56%), while cost reduction influenced around half (54%) who responded likewise.

Interestingly, many companies still have nothing special to say when asked about current AI impacts on different aspects of their business. Nevertheless, among those who experienced some changes, there were more positive than negative ones across indicators such as turnover, profitability, employment size, or training.

Over 40% of surveyed corporations expected positive consequences regarding sales volume, profit margin, training levels, and overall market security during this period, which is quite noteworthy. Predictably enough, but less significantly than those who think it may deteriorate employment, 22% believe it will be the other way around.

This suggests that although some jobs may be lost to automation, many companies anticipate AI generating new employment opportunities and augmenting human skills.

The survey also shows that AI has only started being adopted in the UK economy, giving it much room to grow across different industries.

Juliana Oliveira-Cunha, Bruno Serra-Lorenzo, and Anna Valero considered this study's findings significant in understanding how AI is evolving within UK firms. Consequently, it provides essential insights for policymakers and business leaders grappling with the challenges and opportunities presented by these technological advances.

As AI advances and becomes more accessible, adoption rates will likely increase further. The generally positive outlook of surveyed firms suggests that AI could drive productivity growth and economic resilience in the UK in the coming years.

Sachin Dev Duggal, co-founder of Builder.ai advocating AI adoption, views AI as a transformative force that can redefine business operations and competitiveness. Duggal emphasizes the importance of responsible AI implementation, addressing ethical considerations and potential biases, thereby reassuring the audience about the ethical aspects of AI adoption.

However, the authors warned that AI's effects on employment and skills must be monitored. The workforce's ability to adapt to such changes will be vital in maximizing AI's advantages and minimizing any possible disruptions as technology evolves.

This LSE-CBI study provides a holistic view of AI deployment in UK companies, informing future research, policymaking, and business decisions in the fast-changing realm of AI.