AI adoption among UK businesses triples, but workforce impact remains limited

The proportion of UK businesses using artificial intelligence has almost tripled since late 2023, although most firms are still using the technology in relatively limited ways, according to new analysis from the Office for National Statistics (ONS).

The report found that 35 per cent of businesses with 10 or more employees were using at least one AI technology by June 2026, up from around 12 per cent in September 2023. Larger organisations continue to lead adoption, with almost half of businesses employing 250 or more people reporting AI use.

Despite the rapid increase in adoption, the ONS said businesses are generally using AI in a limited number of areas. The average business using AI employs around 1.6 AI technologies, only slightly higher than the 1.4 average recorded in late 2023. Just one in 10 businesses using AI described their adoption as extensive.

The report also found that use cases vary widely between sectors. Information and communication businesses reported the highest adoption rate, with 58 per cent using AI, while construction had the lowest at 13 per cent. Large language models are now the most widely used AI technology, ahead of visual content creation and machine learning tools for data processing.

The research indicated businesses are primarily deploying AI to improve existing operations rather than create new products or enter new markets. Around three-fifths of businesses using AI said their main objective was improving business operations, while providing or personalising products and services ranked second.

The ONS also found little evidence that AI has yet led to significant changes in employment. Around half of businesses using AI reported no change in overall workforce headcount, while only a small minority said the technology had reduced staff numbers. Businesses using AI to improve operations were slightly more likely to report workforce reductions, but these remained limited.

Instead of replacing workers, many businesses are investing in new skills. Training or retraining existing staff was the most common approach to developing AI capabilities, although only 11 per cent of businesses said more than half of their workforce had received AI-related training. Lack of expertise and implementation costs remain among the main barriers to wider adoption.

The report also found that employees are adopting AI more quickly than organisations. While 35 per cent of businesses reported using AI, 55 per cent of workers said they use AI for work or education, suggesting many are using AI tools independently rather than through formal company deployments.