1. How ready are we to welcome AI?

The question of AI is, quite simply, everywhere. The transformational potential for deployment of AI to every corner of an organisation’s endeavours is now discussed daily in articles, posts, podcasts, seminars, workshops and breakout sessions across the business landscape, with a ferocity seen only when managements fear being left behind by something they are not certain they are keen to embrace.

The breadth of the term does little to assist. While AI has the potential to deliver transformation in many areas of operations, admin, resource management and productivity, this ubiquity in itself can encourage all but the bravest to bury their heads in the sand. 

Yet when it comes to analysing, understanding and leveraging optimum value from the volumes of data organisations capture, the advantages of the right kind of Artificial Intelligence in informing decision making and freeing up valuable human resource simply cannot be ignored.

1.1 The UK Government and the AI agenda.

In the public sector, the recent UK Spring Budget underscored a national commitment to integrating AI for public good, particularly in enhancing public services. Significant investment has been earmarked to enable the NHS to leverage AI in improving diagnostics and patient care efficiency through better analysis and understanding of both clinical and management data.

In the private sector, the same Budget proposes initiatives to unlock further investment aimed at upskilling SME businesses in AI technologies. This strategic allocation not only seeks to modernise infrastructure, but also to foster a more robust, AI-enabled economy.

1.2 Big business, AI and you.

Of course, Artificial Intelligence is hard at work all around us, everyday, subtly enhances our daily experiences in ways we hardly notice. 

When you scroll through Netflix, AI algorithms are at work analysing your viewing habits alongside those of millions of other service subscribers, and using the data to recommend new movies and shows the algorithms suggest you are likely to enjoy.

Similarly, shopping on Amazon is a curated experience as a result of AI predicting and suggesting products you might need or want based on your browsing and purchase history compared to the continuously incoming data of millions of other users.

Today, even driving into a car park is made more efficient by AI, with license plate recognition systems streamlining entry and exit without manual input. 

Each of these is a reminder that AI is a present-day business reality, quietly integrated into our everyday lives – while just as quietly providing proactive organisations with increased efficiency, productivity and understanding achieved through more complete leveraging of their data.

1.3 AI adoption. Does size matter?

While not every business has the scale of Amazon, businesses of any size are likely to find AI capable of affording them increased opportunities. However, medium to large organisations facing significant challenges with management of their data (particularly those with multi-site operations) are likely to gain most from AI-supported data analysis and interpretation capable of providing 360 degree vision and of enabling action based on this.

The AI in question, ‘supervised AI’ to give it its correct name, is ideal for companies overwhelmed by volumes of data that would require extensive time to analyse manually. By automating the process, the AI provides real-time, unbiased insights now essential for making informed decisions on marketing strategies and expenditure, resource allocation, and operational improvements. 

Organisations already achieving efficient real-time data handling, or handling only small  data sets, would be unlikely to benefit meaningfully from this level of AI intervention.

1.4 Where we are now.

It is difficult to offer a definitive picture of the current awareness, understanding, trust and risk associated with AI in larger SME and enterprise organisations on a global, or even transatlantic, basis – these markets being too fragmented to allow useful aggregating.

However, in South Yorkshire, UK, where global supervised AI leader Automated Analytics is based, awareness and attitudes towards AI are mixed but generally positive, according to surveys commissioned by the Doncaster Chamber of Commerce (April 2024). Their data reveals that 69% of businesses questioned have some confidence in their understanding of AI, while some 70% see AI as an opportunity rather than a threat to their operations.

This local level perspective aligns with broader trends observed across the UK. 

National reports from 2023 and 2024 indicate a growing recognition of AI’s potential benefits among businesses of all sizes. The 2023 AI Barometer Report by the AI Council surveyed over 1,000 UK businesses and found that 78% of respondents believe AI will have a positive impact on their sector in the next five years. Additionally, 63% of companies had already adopted AI technologies in some form, with sectors such as finance, healthcare, and manufacturing leading the way in AI application.

Alongside this, the UK Government’s National AI Strategy, also published in 2023, outlined ambitious goals to drive AI adoption across various industries. It emphasises the importance of AI skills development, data infrastructure investment, and ethical AI principles to ensure responsible AI use. As part of the initiative, the UK Government allocated funding for AI training programs, research projects, and industry partnerships to support businesses in adopting AI technologies.

Despite these positive signs, however, challenges remain if we are to fully realise AI’s potential. The AI Barometer Report also highlighted barriers to AI adoption, including concerns about data privacy, cybersecurity, and the ethical implications of AI technologies. 

In addition, the Digital Skills Gap Report by the CBI revealed that 65% of UK businesses cited a lack of AI skills as a significant obstacle to AI implementation. While there is growing awareness and enthusiasm for AI adoption in the UK, there is still work to be done to address skill shortages, ethical considerations, and other challenges hindering wider implementation.

1.5 Why the US leads in AI adoption.

While the UK is striving hard, at this point the US is very leading the march. In the view of Automated Analytics founder and AI Analytics sector though leader, Mark Taylor, this results from the tendency within UK business to be risk-averse, prioritising proof of concept, and the need to ensure AI solutions work, before committing to them.

This cautious approach leads to longer decision-making processes and limited resulting adoption of AI technologies. In contrast, Taylor observes, the American market is characterised by a greater willingness to take risks and embrace innovation. US clients are more inclined to simply jump into AI implementations, viewing them as opportunities to gain a competitive edge without significant downside risk.

This disparity in attitude towards risk and innovation is reflected in the adoption rates of AI technologies. Taylor’s Automated Analytics serves 3.5k clients in America compared to 1k clients in the UK, despite having operated in the UK for a far longer period. (While the UK has a smaller market size than the US, the difference in adoption rates suggests a deeper cultural and regulatory influence on AI adoption.)

From a broader perspective, research also supports the notion that the US is ahead of the UK in AI adoption. The World Economic Forum’s Global Competitiveness Report for 2023/24 continues to rank the US higher than the UK in AI readiness, investment, and innovation. Factors contributing to this gap include differences in regulatory environments, investment priorities, and, as per Mark Taylor’s surmise, cultural attitudes towards risk-taking and entrepreneurship.

The disparity between US/UK adoption rates should be a cause for concern, though not of despair, for policymakers, businesses, and stakeholders in the UK. 

As AI continues to drive technological advancements and reshape industries, falling behind in adoption could result in missed opportunities for economic growth, innovation, and competitiveness on the global stage. For this reason, addressing the cultural, regulatory, and investment barriers to AI adoption is essential in enabling the UK to catch up and restore competitiveness.

1.6 UK management and its relationship with AI.

A survey of more than 1000 B2B business leaders, conducted on behalf of Automated Analytics by YouGov in March of 2024, provides valuable insights into their perceptions and expectations regarding AI and its potential impact on business operations. 

Some 56% of respondents felt they had a reasonable understanding of the potential for AI in their business, while a somewhat concerning 44% felt they did not. Yet while 52% believed that AI has the potential to improve productivity, a sizeable 39% did not. Equally, 48% recognised the benefit AI might bring to forecasting, while an again sizeable 39% failed to see this.

Perhaps most encouragingly, 59% of respondents agreed that AI will make collection and analysis of data more accurate, though with some 30% doubting its ability to impact even this area. While this represents two ‘believers’ for every ‘doubter’, it should be of concern that almost 1 in 3 business leaders surveyed were blind to the potential for AI in analysing their data, and so in unlocking the performance and productivity wins which its insights could enable.

1.7 The two AI obstacles holding back UK business.

Combining the insights gained from the survey with the observations of Automated Analytics’  founder Mark Taylor, it seems reasonable to deduce that ‘trust’ and ‘risk aversion’ are significant barriers holding back UK business from adopting AI at the pace seen in other markets. 

Taylor points to the cultural difference between the UK and the US, with the prevailing sentiment of cautiousness in UK business discussed earlier, and businesses seeking tangible proof of AI’s effectiveness before fully committing to its adoption. This contrasts , as discussed, with the more innovation-driven mindset prevalent in the US, with businesses willing to take calculated risks and embrace new technologies without the need for extensive validation. 

The conclusion from this would be that UK businesses risk missing out on the transformative potential of AI due to this lack of trust and reluctance to venture into uncharted territory, no matter how promising its potential.

1.8 AI and the fear of job losses.

Business leaders may also be responding, consciously or subconsciously, to fears amongst their workforce that adoption of AI will result in job losses. However, an anecdotal yet  significant volume insight from across Automated Analytics’ client base, debunks this myth. 

Of the company’s 4,000 clients globally, not a single one reports job losses as a result of implementing AI solutions. On the contrary, AI insights have generally led to significant cost savings, creating opportunities for businesses to hire more efficiently and enhance overall performance. 

This underscores AI’s transformative potential to drive productivity gains by augmenting human capabilities, rather than replacing roles.

 

/contd