Latest Searce report reveals AI trends & challenges for 2024

Searce has released its 2024 State of AI report, shedding light on current trends and challenges in artificial intelligence adoption among major organisations in the UK and US. The study canvassed opinions from 300 senior technology executives at firms generating at least USD $500 million in revenue.

The report highlights significant financial commitments towards AI, with almost one in ten decision-makers in both nations planning to spend over USD $25 million on AI initiatives this year. Investments are particularly evident in the UK, where a substantial 96% of participants view AI adoption as a critical business priority, and 92% regard their AI projects as successful.

Julian Mulhare, Managing Director for EMEA at Searce, emphasised the transformative potential of AI. "As global investments in AI continue to rise, it is crucial for businesses to focus not just on spending, but on the tangible returns these investments can deliver. Strategic AI adoption can transform operations and drive significant growth," he commented.

The research identifies key hurdles to AI adoption that vary between the UK and the US. In the UK, a lack of qualified talent emerged as the primary challenge, cited by 19% of respondents. Conversely, in the US, data privacy and security were the foremost concerns, with 20% considering it their biggest obstacle.

Mulhare addressed these concerns in his statement, reflecting on the industry's long-standing talent gap. "From speaking with our European clients, we also know how much pressure businesses face to keep up with the latest technological demands. A lot of the findings in our research reflect some of those conversations, including the challenges to AI adoption. Lack of qualified talent has been something we've been talking about since our inception in 2004 and is why many businesses come to us to help plug that internal skills gap — key for empowering teams by making work better, and people happier."

The study also delves into the debate on whether to build in-house AI solutions or procure them externally. Findings indicate that over half of UK respondents (51%) have opted to purchase solutions and partner with external service providers rather than develop them internally. This trend is even more pronounced in the US, where 57% of respondents prefer external solutions.

Other noteworthy insights include the motivations behind AI investments. Approximately one-third of businesses in the UK (31%) and the US (35%) are driving AI investments to foster new business growth. Additionally, 31% of UK companies plan to increase their AI spending by 26%-50% in the upcoming year.

The research underscores the widespread optimism surrounding AI adoption, coupled with the ongoing efforts by organisations to address the existing challenges. These findings provide a comprehensive view of the current state of AI across major markets, highlighting investment patterns, strategic priorities, and the obstacles businesses face in leveraging AI technology effectively.