A Third of British Businesses Plan to Invest in AI in 2026

Research from Lloyds Bank has revealed that approximately one third of British businesses intend to invest in artificial intelligence during 2026, as organisations prioritise productivity improvements and technological advancement.

The findings, drawn from Lloyds’ business barometer, indicate that companies across the United Kingdom are increasingly recognising AI as a strategic imperative rather than an optional enhancement. The survey highlights three primary objectives driving this investment wave: enhancing operational productivity, upskilling the existing workforce, and strengthening overall technological capabilities.

The emphasis on productivity improvement reflects broader economic pressures facing British businesses, which continue to navigate elevated operating costs and competitive pressures in both domestic and international markets. AI adoption represents a potential solution for organisations seeking efficiency gains without proportionate increases in headcount or capital expenditure.

Upskilling staff emerges as the second key priority, suggesting that businesses are taking a measured approach to AI implementation. Rather than viewing automation as a wholesale replacement for human labour, companies appear to be focusing on augmenting employee capabilities through technology. This approach may help address concerns about workforce displacement whilst maximising the return on AI investments.

The third priority, strengthening technological capabilities, underscores a recognition that AI adoption requires foundational infrastructure improvements. Many organisations are likely assessing their current digital maturity and identifying gaps that must be addressed before AI can deliver meaningful value.

The timing of this investment push is noteworthy. Despite ongoing economic uncertainty and cautious outlooks in various sectors, the commitment to AI spending suggests that business leaders view these technologies as essential for maintaining competitiveness rather than discretionary expenditure that can be deferred.

The Lloyds barometer provides a valuable snapshot of business sentiment and investment intentions across the UK economy. The fact that only one third of businesses plan AI investments also indicates that adoption remains uneven, with potentially significant competitive advantages accruing to early movers whilst others risk falling behind in technological capability.

For investors, this trend presents both opportunities and considerations. Companies successfully implementing AI may achieve margin expansion and competitive advantages, whilst those in sectors facing widespread AI adoption may need to demonstrate clear digital strategies to maintain investor confidence. The emphasis on upskilling also suggests that human capital management will remain crucial even as automation increases.