According to a new SAP report, AI adoption is now a top priority for UK businesses, with eight in ten focusing on technology-driven growth rather than improving customer experience. However, challenges around digital skills, talent shortages, and data infrastructure are slowing progress.

AI fuels business expansion

The SAP report “Supercharging Growth with AI in the UK – a Pathway for High-Growth Businesses” explores how UK businesses turn to AI to drive expansion in 2025. It highlights a growing appetite for AI, with 92% of businesses ranking standard AI applications as a high or medium priority over the next 12 months.

Emerging AI technologies are also a focus, with 91% actively exploring generative AI and 39% prioritising AI-led automation this year. Data-driven decision-making is also key, with half of the businesses surveyed investing in advanced analytics.

AI is seen as crucial for overcoming broader economic and operational challenges. Supply chain resilience is a major concern, with 91% of high-growth businesses identifying it as a priority and 39% ranking supply chain disruptions among their top three business challenges for 2025. More than a third (37%) already use AI and automation to manage economic uncertainty and build stronger supply chains.

Simon Duckett, Chief Digital Officer at renewable energy company Sonnedix said:

“AI is revolutionising the renewable energy sector, driving smarter decisions and operational efficiency to support growth and resilience. In a rapidly evolving market, AI’s predictive models and advanced analytics help us strengthen our supply chain, adapt to economic uncertainty, and seize new opportunities. By combining cutting-edge technology with human innovation, AI ensures we remain agile and prepared to scale and adapt to change sustainably.”

Digital skills and data gaps slow progress

Despite this enthusiasm for AI, businesses face significant barriers to effective implementation. Legacy technology remains a challenge, with 27% of high-growth organisations struggling to integrate new AI tools into outdated systems.

Talent shortages are another major issue, with 34% of businesses reporting difficulties attracting and retaining AI specialists. In response, 40% consider skills development a cornerstone of their growth strategy.

Data limitations hinder progress, with one in three businesses citing insufficient datasets as a barrier to AI model training. Additionally, 34% struggle with poor-quality data and inadequate planning tools, making it harder to leverage AI effectively.

Wesley Doyle, Head of New Business, Corporate at SAP UKI, stresses the importance of overcoming these barriers:

He said:

“Addressing digital immaturity must be a priority for the UK’s high-growth businesses if they want to reach their potential. As our report shows, AI is the key to business agility, resilience, and efficiency, enabling innovation at scale. Looking ahead to 2025 and beyond, those who make bold moves in AI will be best placed to thrive in the UK’s data-driven economy.”

As businesses continue to invest in AI, tackling skills gaps, updating legacy systems, and improving data quality will be essential for ensuring long-term success.

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