UK business leaders cautious on AI due to cost & security fears

More than half of senior business executives in the UK say they are not planning to implement artificial intelligence (AI) within the next year, according to a recent survey conducted by boxxe.

The research, which gathered responses from 1,880 senior executives holding roles of Director level or higher, highlights persistent scepticism towards both the reliability and security of AI among business decision-makers.

Key findings

The study found that 57% of business leaders in the UK intend to avoid implementing AI over the next 12 months. A further 50% of respondents said they do not trust the decisions made by AI systems, while concerns about data security and privacy were cited by 56% of those surveyed.

Cost is also a significant barrier to adoption, with nearly half (46%) of business leaders saying their organisations cannot afford AI at this time. Complexity of integration also emerged as an issue, with 44% indicating it complicates adoption efforts and adds operational and financial pressures.

The findings illustrate widespread caution despite ongoing investments and discussions around AI technologies, such as Microsoft Copilot and similar systems. The study also suggests a lack of enthusiasm for early adoption of technology; 71% of respondents did not consider themselves 'adopters of new technologies'.

Job displacement not a main concern

Contrary to frequently voiced fears about AI eliminating jobs, the research revealed that only one in eight businesses (12%) are worried about AI leading to job displacement. The report suggests that, rather than replacing humans, many business leaders view AI as a tool to augment the existing workforce.

Expert insights

Addressing the report's findings, Chris Carlisle, Business Consultant and acting Chief Services Officer at boxxe, commented on the challenge organisations face in balancing new technology adoption with day-to-day operational feasibility.

"Our findings show that organisations across the UK are currently facing critical trade-offs in balancing innovation and operational feasibility. These findings are interesting as the Government recently released an AI Action plan to address the growing demand for AI professionals. The plan includes measures to train tens of thousands of individuals in AI-related fields by 2030. This involves supporting universities in expanding AI programs, offering scholarships to attract global talent, and promoting alternative pathways like apprenticeships and lifelong learning programs.

He continued, "Despite the momentum behind AI adoption, significant barriers remain, especially for small businesses. One major factor continues to be the high initial investment cost of implementing AI solutions. Overcoming these challenges requires access to expert insight and a strategic use of Proof of Value assessments to guide implementation. By focusing on structured, informed adoption strategies, small businesses can unlock the full potential of AI and position themselves as leaders within their respective markets."

Carlisle highlighted the government's efforts to address skills shortages through its AI Action Plan, which aims to increase training and education opportunities in AI and related fields, and to diversify the UK's talent base.

Cost and complexity barriers

The report notes an ongoing disconnect between business revenue models, which often expect short-term returns, and the longer-term nature of value generation from AI systems. As a result, potential benefits are weighed against up-front investment requirements, especially for small and medium-sized enterprises.

This financial pressure is compounded by concerns about the complexity of integrating AI with existing systems, making many organisations hesitant about adoption.

The survey was conducted over seven months, from June to December 2024, and exclusively targeted senior business leaders across a variety of industries in the UK.

The low proportion of executives expressing concern about AI-driven job displacement, in comparison to worries about trust, security and cost, suggests that debates within UK business communities about AI's role centre mainly on operational, rather than workforce, impacts.