AI drive from Yorkshire businesses set to accelerate, Barclays research finds
Businesses in Yorkshire and Humber are investing hundreds of thousands of pounds in AI and emerging technologies, new research from Barclays has suggested.
The bank has found that businesses in the region have invested an average of £223,611 in the area – slightly below the national average investment of £235,600.
The data is part of the Q2 Barclays Business Prosperity Index, which combines anonymised, client data from over one million Barclays business clients, with survey data from 1,000 business leaders, alongside analysis from the Centre for Economics and Business Research.
The study found that nationally 89 per cent of firms are looking to solve business problems with AI over the next two years, with improving data analysis, forecasting or business intelligence, enhancing customer experience and reducing operational costs cited as the main opportunities.
More than two-thirds of businesses plan to increase their investment in AI and emerging technologies in the next year. Investment is more pronounced for large corporates of more than 250 employees who have invested an average of £400,000, compared to £225,500 from medium enterprises (50-249 employees) and £125,250 small businesses (10-49 employees).
Among those already using AI, the reported benefits were clear. Almost one third (32 per cent) have seen improved idea generation and innovation, 31 per cent cite better decision-making driven by data or AI models, 30 per cent have seen improved customer experience or services, and a further 30 per cent have reduced operational costs.
Demonstrating support for the UK’s technological innovation, seven in 10 business leaders (72 per cent) believe the UK can be a global AI leader, with 19 per cent believing the UK already is.
According to business decision-makers, who don’t believe the UK is already an AI leader, the most important enablers include: clear and innovation-friendly AI regulation (27 per cent), support for regional AI training centres and skills hubs (25 per cent), sustained public and private investment in AI research and startups (24 per cent), and stronger partnerships between business and education (24 per cent).
Matt Hammerstein, Chief Executive of Barclays UK Corporate Banking, said: “It’s encouraging to see an intent to invest from UK businesses, with many turning that into action. Against a backdrop of global uncertainty, there’s more to do to build confidence in the UK as a place for businesses to grow and scale. Our research suggests that AI is becoming a key tool to drive innovation, encourage investment and upskilling to lift productivity and build confidence in the UK as a global business hub.”