Artificial intelligence has rapidly evolved from an experimental technology to the primary 'first line of defence' for British businesses navigating regulatory scrutiny and operational uncertainty.
Investment Shifts Dramatically Toward AI
Fresh data from consultancy firm Elixirr reveals that nearly half of UK businesses are now channelling all resilience-focused investment directly into technology and AI solutions. This strategic pivot comes as 87% of UK business leaders acknowledge being compelled to reassess their operational resilience due to mounting pressure from regulators.
The scale of this investment shift is striking. Spending on AI and technology has more than tripled compared to allocations for supply chain diversification (14%) or upskilling existing talent (13%). With one in four businesses treating agentic AI as a top strategic priority, half are rapidly deploying AI agents across multiple business functions.
Early Adopters Reaping Significant Benefits
According to Elixirr's findings, organisations that have embraced AI are already pulling ahead of competitors. 43% of business leaders report experiencing faster decision-making capabilities, while over a third have documented substantial cost savings.
Adam Hofmann, principal at Elixirr, explained the differentiation between superficial and meaningful adoption: "The organisations making real progress are those that go beyond surface-level adoption, embedding AI deep into their operations, reimagining outdated processes, and building a culture that moves at the speed of technology."
He added a stark warning for hesitant businesses: "Playing it safe is now the biggest risk."
Fragmentation and Regulatory Approach Create Challenges
Despite these positive developments, significant challenges remain. Persistent fragmentation in AI ownership, combined with uncertainty around return on investment, means many organisations continue to struggle with unlocking AI's full potential.
Three-quarters of firms reported lacking a unified AI strategy, leaving them strategically exposed. This fragmentation occurs against a backdrop of regulatory uncertainty, with the Financial Conduct Authority (FCA) reiterating its decision not to draft new AI-specific laws.
The FCA maintains that the best approach to managing AI's rapid ascent involves testing and collaboration rather than rushed legislation. This stance emerges despite September data revealing that financial services firms investing billions in AI have been lacking adequate measures to ensure safe usage.
