UK firms are pouring money into AI, but they won't see a return on investment unless they address these key issues

"UK business investment in AI is set to skyrocket over the next two years, according to new research from SAP, but many are failing to properly plan - and it could cost them dearly. Analysis from the tech giant shows UK businesses are, on average, spending £15.94 million on AI this year. Moreover, they expect to increase their investment in the technology by an average of 40% across the next two years. The report found a good return on investment (ROI), with the average UK business seeing returns of 17% from AI investments, and ROI forecast to almost double to 32% by 2027."

"Many said they were already starting to unlock value from AI, with 36% reporting significant improvement in decision-making, 34% in customer engagement, and 31% in time to value. Notably, businesses are confident in their long-term prospects with AI. More than three-quarters (78%) of executives believe AI will achieve a positive return within one to three years. More than half (52%) say it delivers returns faster than any other technology. In recent months, agentic AI has become highly popular, with the average UK business expecting an ROI of 11% from agents within two years, equivalent to £2.7 million."

"While the outlook is upbeat, the report warned that a concerning number of AI programs are fragmented, meaning many aren't unlocking full value from the technology. Indeed, 42% of UK enterprises described their investment as piecemeal. A key factor here is that around 37% of projects are department-led, according to SAP, while 15% admitted their programs were ad-hoc. Only 7% have a strategic, enterprise-wide IT plan, the report found. As a result, 70% of UK businesses said they were unsure whether AI is delivering its full potential."

UK businesses are spending an average of £15.94 million on AI this year and expect to raise investment by about 40% over the next two years. Average ROI from AI is currently 17% and is forecast to reach 32% by 2027. Thirty-six percent indicate significant improvement in decision-making, 34% in customer engagement, and 31% in time to value. Seventy-eight percent expect a positive return within one to three years, and 52% say AI delivers returns faster than other technologies. Agentic AI is expected to yield an 11% ROI (about £2.7 million). However, 42% describe programs as piecemeal, 37% are department-led, 15% ad-hoc, only 7% have enterprise-wide IT plans, and 70% are unsure they are realizing AI’s full potential.

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