AI regulation concerns hinder UK business adoption, survey says

A new global survey from Freshworks has revealed that more than a third of British businesses (35%) believe a lack of clarity around regulation is the primary obstacle to adopting Artificial Intelligence (AI) technology. The study, which involved over 7,000 senior decision makers and managers across 12 countries, included 2,500 participants from the UK, Germany, France, and the Netherlands.

Despite UK business leaders recognising the potential benefits of AI, many remain cautious about fully integrating the technology into their operations due to regulatory ambiguities. The research found that UK business leaders save more than three hours a week using AI tools. Nonetheless, the country exhibits significant concern about regulatory clarity more than any other region globally.

Of the UK respondents, 37% admitted they currently have no plans to incorporate AI into the workplace, and 8% stated they were uncertain if their organisations currently utilised the technology. Additionally, security and a lack of testing were prevalent concerns among British business leaders. Yet, nearly two-thirds (65%) of respondents either completely or mostly trusted AI to add value to their business operations.

Business leaders in the UK appeared to take a longer-term approach to AI integration, often expecting a timeline of one to two years before seeing a substantial impact from AI software. The study suggests that UK leaders are less likely to expect instant returns from AI investments compared to other regions.

Prakash Ramamurthy, Chief Product Officer at Freshworks, commented on the findings, saying, "This report exemplifies that AI is delivering tremendous productivity gains at enterprise scale. Knowledge workers are also seeing strong productivity gains at work, which in turn is sparking strong employee interest in mastering AI skills."

Ramamurthy added, "Make no mistake, the AI era is firmly delivering on its promise to free up employees for higher-level work and showcasing compelling returns on AI. Leaders across industries perceive AI as a transformative technology capable of delivering significant business impact, from enhanced decision-making and increased operational efficiencies to personalised customer experiences and innovative product development."

UK business leaders are predominantly using AI-enhanced tools for tasks such as writing or creating content (43%), data analysis (39%), and researching or brainstorming (35%). A significant proportion (44%) reported that their work became easier with AI-enhanced tools, while 42% noted an increase in their work output. Additionally, over a third (37%) expressed excitement about using the new technology.

Concern about job security persists among British business leaders; nearly half (46%) fear that AI could replace a large portion of the workforce in their field. This sentiment was echoed globally. However, two-thirds of UK respondents (66%) are actively seeking ways to expand their AI skills to remain competitive in the job market. The majority (70.5%) also believe that AI will never fully replace human workers.

Measuring the impact of AI, respondents highlighted increased quality of work (89%), productivity gains (88%), reduced need for other software (82%), and improved customer engagement (80%) as the most critical outcomes. About 40% of business leaders believe that AI software already provides a better return on investment compared to other software implemented in their operations.