With AI Safety Summit approaching, UK firms report that they are ill-prepared for the AI revolution

3 out of 4 businesses are investing in AI blindly despite a consistent track record of digital failures

New research reveals that 70% of UK businesses that invested in digital products over the past five years faced failure. This translates to approximately 3.8 million businesses in the UK encountering digital setbacks.1 This is according to recent research by Infinum, a leading digital product consultancy.

Despite the setbacks experienced in digital ventures, more than three quarters (78%) of UK businesses are gearing up to invest in artificial intelligence in the next 12 months. Yet 73% admit to being ill-prepared for the integration of this technology into their operations.

This comes as the UK, led by Prime Minister Rishi Sunak, prepares to host the world’s inaugural AI Safety Summit, with the aim of positioning the nation and its businesses at the forefront of AI innovation.

Businesses diving into AI blind

This study highlights a fervour for AI adoption, with 90% of chief technology officers (CTOs) at UK businesses planning to invest in AI in the next 12 months.

Notably, the industries considering  AI adoption, such as IT, healthcare, finance, and automotive, are also the ones indicating a lack of readiness for integration (see table 1 and 2 below).

Likewise, companies with larger digital transformation budgets and higher turnovers have encountered more failures in the past five years (see table 3 below).

Jonathan Boakes, Managing Director of Infinum UK, says: “In the rush to seize the golden ticket of AI innovation, many firms find themselves swept up in the excitement, fearing they might miss out on the next big thing. However, this enthusiasm can obscure sound judgment, causing businesses to leap into AI without a well-thought-out plan. And learning from the impulsive golden ticket hunters in Willy Wonka’s world, those who dive in impatiently will face challenges. It’s a reminder that while FOMO is a powerful motivator, it can lead to incorrect investments and untimely scaling. To succeed in the AI revolution, businesses need to reflect on their past mistakes and determine if it is truly productive to join the trend.”

Businesses that don’t understand their own data don’t stand a chance 

The study reveals 65% of UK businesses are uncertain about how to effectively use their data to drive digital transformation—a concerning statistic as the right data is essential for advancing AI innovation.

Additionally, 35% of businesses acknowledge a shortage of the necessary skills to successfully implement AI specifically.

Boakes continues: “Using unreliable or unverified data can result in biased outcomes and legal, ethical, and security risks. Racing to the forefront of investment serves no purpose if you’re destined to fail when the starting gun fires.”

Privacy concerns top business agenda 

When asked to rank their concerns regarding practical AI integration, businesses expressed primary concerns about data privacy and security risks, accounting for a significant 38%.

Additionally, one in four (25%) businesses is apprehensive about regulatory changes and ensuring compliance with AI standards. These worries coincide with the UK’s preparations to host the world’s first AI Safety Summit in November, with eager anticipation of a clear framework for compliant AI adoption.

Boakes concludes: “The UK’s global AI Safety Summit should offer practical solutions for businesses, not just suggestions. The current agenda focuses on existential threats and the potential misuse of AI by criminals and terrorists for bioweapons. While addressing these significant concerns is undoubtedly important, it raises the question of why the Summit isn’t equally prioritising the immediate challenges facing businesses that are implementing this technology.”

“The current narrative around the Summit revolves around keeping people safe, but this should also extend to businesses, which require proper guardrails and a robust framework for the successful and compliant integration of AI.”

“Simultaneously, to achieve another key Summit goal, which is positioning the UK as an AI frontrunner, it’s essential to address the current shortcomings in the nation’s approach to digital AI adoption by businesses.”

For advice on integrating AI in businesses and to read the full study, download the report ‘Beyond Buzzwords: Decoding the Digital and AI Revolution’.

Methodology: 

Infinum commissioned independent market research company Censuswide to survey 1003 IT decision makers and leaders, as well as project managers, between the dates of 13^th September and 18^th September 2023. Unless stated otherwise, all figures were drawn from this poll.

Footnotes:

1. Our estimation of the potential pattern for UK businesses is derived from a calculation involving two key data sources. We began with the 2022 business population estimate of 5.5 million, obtained from Gov.UK. Using this, we used the Censuswide research which documented the percentage of polled businesses that encountered some form of digital failure in the last five years as 70%. Therefore, it can be estimated that using the data sample, 3.8m businesses have invested in digital transformation but experienced failure in the last five years.

Table 1

Table 2: 

Table 3: 

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