Introduction to AI in Businesses
A new report from Red Hat finds that 89 percent of businesses are yet to see any customer value from their AI endeavors. However, organizations anticipate a 32 percent increase in AI investment by 2026. This shows that while businesses are struggling to implement AI effectively, they still believe in its potential and are willing to invest more in the future.
Current State of AI in UK Organizations
The survey finds that AI and security are the joint top IT priorities for UK organizations over the next 18 months, with 62 percent of respondents citing them as necessary. These are followed by hybrid or multi-cloud strategies and virtualization, showing a clear direction in the technological focus of British businesses. However, the path to AI integration isn’t straightforward, and organizations are facing several barriers to adoption.
Barriers to AI Adoption
The high costs of implementation and maintenance are the biggest concern for 34 percent of respondents. Data privacy and security issues are a close second, troubling 30 percent, while 28 percent are struggling with the integration of AI into their existing systems. A particularly interesting finding is the prevalence of “shadow AI,” with 83 percent of organizations reporting the unauthorized use of AI tools by employees. This suggests a disconnect between official IT strategy and the day-to-day practices of the workforce, potentially introducing security risks and inefficiencies.
The Role of Open Source Software
In an effort to navigate these challenges, UK organizations are increasingly turning to open source software. The survey reveals that 84 percent of respondents consider enterprise open source important for their AI strategy, with similarly high figures for virtualization, hybrid and multi-cloud, and security. Joanna Hodgson, UK Country Manager at Red Hat, said: “This year’s UK survey results show the gap between ambition and reality. Organizations are investing substantially in AI but currently only a few are delivering customer value. In the journey from experimentation to sustainable production, enterprise knowledge and integration with enterprise systems must pave the road to achieving value from AI.”
Priorities in AI Development
The survey also explored the specific areas of AI that are being prioritized. Agentic AI, which involves systems that can operate with a high degree of autonomy, is the top priority for 68 percent of respondents. This is followed by the desire to enable broad employee adoption and to operationalize AI. The skills gap remains a persistent challenge, with AI being the most urgent area of concern for the second consecutive year. Within the field of AI, the talent shortage is most acute in agentic AI, the ability to efficiently use AI capabilities, and educating the wider business on how to use AI.
UK’s Position on the Global AI Stage
Despite these domestic challenges, there is a strong sense of optimism about the UK’s position on the global AI stage. 83 percent of respondents believe the UK is either already a global AI powerhouse or has the potential to become one within the next three years. However, this confidence is tempered by a lack of talent pipeline, limited public funding, and insufficient private sector engagement, which are seen as the main factors holding the UK back from extracting value from AI.
Cloud Adoption and AI Integration
The report also touches on the complexities of cloud adoption, which is further complicated by the integration of AI workloads. Internal silos, sovereignty concerns, and unclear return on investment continue to be barriers. In response, UK organizations are prioritizing operational control and autonomy, securing the software supply chain, and maintaining flexibility in their choice of IT suppliers. Hans Roth, SVP and GM for EMEA at Red Hat, commented: “Organizations want greater operational control and IT resiliency to adapt in a world of constant disruption. The survey results, as well as our daily conversations, show sovereignty prominently on the agenda for enterprise’s ongoing cloud strategies and the budding AI opportunity.”
Conclusion
The findings from Red Hat’s latest survey show the UK is ready to tap the value potential of AI, but is also struggling with the practicalities of implementation, skills shortages, and the complexities of the technological environment. The strong emphasis on open-source suggests a pragmatic approach, supporting collaboration and flexibility in the pursuit of AI-driven innovation. As businesses continue to invest in AI, it is essential to address the challenges and barriers to adoption to unlock the full potential of AI.
FAQs
Q: What percentage of businesses are yet to see any customer value from their AI endeavors?
A: 89 percent of businesses are yet to see any customer value from their AI endeavors.
Q: What is the expected increase in AI investment by 2026?
A: Organizations anticipate a 32 percent increase in AI investment by 2026.
Q: What are the top IT priorities for UK organizations over the next 18 months?
A: AI and security are the joint top IT priorities for UK organizations over the next 18 months.
Q: What is the prevalence of “shadow AI” in organizations?
A: 83 percent of organizations report the unauthorized use of AI tools by employees.
Q: Why are UK organizations turning to open source software?
A: UK organizations are turning to open source software to navigate the challenges of AI adoption, including the high costs of implementation and maintenance, data privacy and security issues, and integration with existing systems.
