UK firms are spending more on AI than ever before, but still think data is holding them back | Daily Reports Online
- SAP report says AI spend could rise 45% between 2026 and 2028, ROI up by an estimated 39%
- Half of businesses worry agentic AI is being deployed quicker than governance
- Poor data quality is holding them back, 67% believe in integrated data systems as a fix
The average UK business now spends £20.6 million on AI per year according to new SAP data, marking a substantial 27% year-over-year increase compared with 2025 (£16.2 million).
And this is showing no signs of slowing down – as SAP even anticipates a further 45% increase in the two years between 2026 and 2028, bringing average UK business AI spend to very nearly £30 million annually.
Importantly, SAP also envisions ROI increasing in line with spend, rising from 17% in 2025 to 22% this year, and as much as 39% by 2028.
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UK AI spend is rising, but at a cost
Despite anticipated rises in ROI, SAP criticized Britain’s businesses for lacking AI strategies. Only 11% are said to have a strategic and holistic approach to AI investments, with around two in five businesses prioritizing AI investments on a department level instead of org-wide.
“Organisations are increasing their investments and expecting more in return, but now the focus needs to be on turning that ambition into scalable business value,” SAP UK&I MD Leila Romane explained.
While AI spend is largely on the rise, agentic AI deployments are still in progress, with around 70% of UK businesses piloting agentic AI use cases. Still, there’s widespread optimism among users, who believe they could unlock a 4.7x rise in financial returns over the next two years.
Among AI agent users, around half (49%) worry they’re being introduced faster than they can be governed, and only a minority (9%) consider their governance skills and expertise to be fully ready. A staggering three in five (61%) are either developing governance processes now, or reported limited or no readiness at all.
But despite a clear lack in governance, most are opting to blame their poor data foundations. Poor data quality (71%), incomplete information (70%), siloed systems (65%) and limited access to real-time data (62%) are all considered to be barriers in this area.
Looking ahead, two-thirds (67%) believe integrated data systems are likely to become the most important enabler for AI readiness.
“Good governance is not a brake on AI adoption – it’s actually the opposite,” CBI Technology and Innovation Director Naomi Weird added.
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