The State of AI in UK Businesses: Insights from Red Hat’s Latest Survey

A recent report from Red Hat has unveiled a compelling landscape regarding the integration of artificial intelligence (AI) in UK businesses. Despite a significant surge in AI investments projected to increase by 32 percent by 2026, a staggering 89 percent of organizations have yet to realize any customer value from their AI initiatives. This paradox raises critical questions about the efficacy and implementation of AI strategies across various sectors.

Top IT Priorities: AI and Security Lead the Way

The survey highlights that AI and security jointly rank as the top IT priorities for UK organizations over the next 18 months, with 62 percent of respondents identifying these areas as pivotal. Following closely behind are hybrid or multi-cloud strategies and virtualization, demonstrating a clear technological focus among British enterprises.

Barriers to AI Adoption: Challenges Ahead

While the ambitions are high, the journey towards effective AI integration is laden with challenges. A significant portion of organizations cite barriers to adoption, with 34 percent pinpointing the high costs of implementation and maintenance as their primary concern. Data privacy and security issues are a close second, affecting 30 percent of respondents, while 28 percent struggle with integrating AI into their existing systems.

The Rise of Shadow AI: A Hidden Risk

One particularly alarming finding is the prevalence of “shadow AI,” where 83 percent of organizations report unauthorized use of AI tools by employees. This disconnect between official IT strategies and everyday practices may introduce security risks and operational inefficiencies.

Open Source Software: A Solution to Challenges

In response to these hurdles, UK organizations are increasingly gravitating towards open-source software. The survey indicates that 84 percent of respondents view enterprise open-source as crucial for their AI strategies, with similar sentiments extended towards virtualization, hybrid and multi-cloud operations, and security.

Expert Insights: Bridging the Gap Between Ambition and Reality

Joanna Hodgson, UK Country Manager at Red Hat, comments, “This year’s UK survey results illustrate the gap between ambition and reality. While organizations are investing heavily in AI, only a select few are currently delivering customer value. The pathway from experimentation to sustainable production hinges on enterprise knowledge and integration with existing systems.”

Prioritizing AI Capabilities: The Focus on Agentic AI

The report further explores specific AI areas being prioritized by organizations. Agentic AI, which enables systems to operate with a high degree of autonomy, is the top priority for 68 percent of respondents. The desire to facilitate broad employee adoption and operationalize AI also ranks highly.

Addressing the Skills Gap: A Continuing Challenge

The skills gap remains a pressing issue, with AI emerging as the most urgent area of concern for the second consecutive year. Within the realm of AI, talent shortages are most acute in agentic AI and in educating the wider business on effective AI usage.

Optimism Amidst Challenges: The UK’s AI Future

Despite these domestic hurdles, there is a palpable sense of optimism regarding the UK’s potential on the global AI stage. A striking 83 percent of respondents believe the UK is either already a global AI leader or has the potential to emerge as one within the next three years. However, this optimism is tempered by challenges such as a lack of talent pipeline, limited public funding, and insufficient private sector engagement.

Complexities of Cloud Adoption: Navigating New Terrain

The report also addresses the complexities surrounding cloud adoption, particularly as it relates to AI workloads. Internal silos, sovereignty concerns, and unclear returns on investment persist as barriers. UK organizations are prioritizing operational control and autonomy, securing the software supply chain, and maintaining flexibility in their IT supplier choices.

Conclusion: A Pragmatic Approach Towards AI Innovation

Hans Roth, SVP and GM for EMEA at Red Hat, emphasizes, “Organizations seek greater operational control and IT resilience to adapt in a world of constant disruption. The survey outcomes reflect sovereignty’s importance in enterprise cloud strategies and the emerging AI opportunity.”

The findings from Red Hat’s survey illuminate the readiness of UK businesses to harness the value potential of AI, even as they grapple with implementation challenges, skills shortages, and the intricacies of a rapidly evolving technological landscape. The strong emphasis on open-source solutions suggests a pragmatic approach aimed at fostering collaboration and flexibility in pursuit of AI-driven innovation.

Engage with Us: Questions and Answers

1. What percentage of UK businesses have yet to see customer value from AI?

89 percent of businesses have not yet seen any customer value from their AI endeavors.

2. What are the top IT priorities identified in the survey?

AI and security are the joint top IT priorities, followed by hybrid or multi-cloud strategies and virtualization.

3. What is the main barrier to AI adoption according to the report?

The high costs of implementation and maintenance are the primary concern for 34 percent of respondents.

4. How prevalent is shadow AI in organizations?

83 percent of organizations report unauthorized use of AI tools by employees, indicating a disconnect between IT strategy and daily practices.

5. Why is open-source software important for AI strategies?

84 percent of respondents consider enterprise open source important for their AI strategies, as it fosters flexibility and collaboration.