UK at risk of missing GBP £500 billion AI boost, leaders warn

The UK risks missing out on a potential GBP £500 billion AI economic boost as business leaders warn that insufficient investment could drive talent overseas.

According to research commissioned by Liberty Communications in partnership with Vanson Bourne and Tech Funding News, industry leaders have expressed concerns in the Mind the Gap 2025 report about the UK's ability to maintain competitiveness in artificial intelligence (AI) due to challenges posed by skills shortages, infrastructure deficits, and regulatory barriers.

The report indicates that while a substantial 82% of respondents view the UK as performing well globally, only 34% see it as a global leader in AI innovation. Nearly half, at 48%, perceive the country as merely competitive rather than at the forefront of AI development.

Business leaders report that the pace of AI adoption in the UK is insufficient to secure long-term success in the field. More than half of those surveyed, at 55%, agree that the country is not moving fast enough to seize the available AI opportunities. Additionally, 51% believe that the UK government's current regulatory approach does not adequately balance the need for innovation with ethical safeguards. Insufficient infrastructure is also cited as a key concern by 53% of respondents.

Talent concerns

The shortage of AI skills is widely acknowledged as a fundamental barrier to progress. The report finds that 58% of business leaders do not believe the current AI skills pipeline can meet future demand. A substantial 83% warn that unless investment in AI is increased, the UK will lose its top AI talent to overseas opportunities. A further 69% of organisations report that a lack of available skills is preventing them from adopting AI solutions. The high costs associated with exploring or scaling AI technologies are also challenging for 68% of respondents.

Other key obstacles include the limited access to high-quality training data, cited by 67%, and restricted budgets or funding for AI initiatives, also highlighted by 67% of respondents.

Business outlook

Despite these concerns, there is clear recognition of the growing importance of AI to business success in the UK. According to the report, 78% of businesses expect AI to be deployed at scale across their organisations by 2027, compared to 28% today and only 6% in 2023.

Business leaders increasingly acknowledge that AI adoption will be a critical differentiator. With nearly eight out of ten (78%) business leaders believing that AI adoption will separate industry winners from losers in the coming years, the urgency for action is rising.

"Can the UK be the one driving the AI transformation? With recent investment promises from the global players like Microsoft and Nvidia, we have a chance to be a hub for this innovation, but only if we double down on the foundations - talent, infrastructure and policy - that make scaling possible," said Elena Davidson, CEO at Liberty Comms.

Lauren Budd, Senior Research Manager at Vanson Bourne, said, "Skills shortages are holding organisations back at every stage of AI adoption, and it's becoming a national challenge. Building AI literacy across the entire workforce should be treated as a strategic priority if the UK wants to stay competitive. This is the UK's moment to decide whether we lead or follow. If we act now, we can anchor AI talent, research and high-value jobs here. If we hesitate, we risk watching the next wave of economic growth happen somewhere else."

The report highlights potential economic benefits if challenges are addressed. Akansha Dimri, Editor at Tech Funding News, noted, "The UK could make more than half a trillion pounds in the next decade by embracing AI and cloud technology. The question is whether the UK's ecosystem can keep up. To hit leaders' projected 78%, AI adoption would need to more than double its previous pace. But here's the risk: that kind of leap will only happen if we see serious investment in skills, infrastructure, and capital. Otherwise, the UK could overpromise and underdeliver, ultimately losing credibility on the global stage."

The research was based on views from a range of industry stakeholders, highlighting a widespread desire for the UK to increase its investment in AI talent, infrastructure and policy to ensure economic gains and strengthen its global position in the sector.