AI Use Among UK Businesses Doubles to 32%, Government AI Adoption Survey 2026 Finds
32% of UK businesses with five or more employees used at least one AI technology in 2026, up from 16% in 2025, according to the government's AI Adoption Survey published on 29 October. Skills gaps remain the biggest barrier.
By Entrepreneur Group · Published
AI use among UK businesses has doubled in a year. The government's AI Adoption Survey 2026, published on 29 October, found that 32% of businesses used at least one AI technology in 2026, up from 16% in 2025. Most firms are using simple, off-the-shelf tools for admin and marketing, and only 14% see AI as highly or critically important to their business.
The survey covers UK private sector businesses with at least five employees. Interviews with 3,503 businesses were carried out by telephone between 7 January and 21 April 2026.
Who is using AI
Adoption rises with business size, according to the full report:
- Micro businesses (5 to 9 employees): 27%.
- Small businesses (10 to 49): 34%.
- Medium businesses (50 to 249): 47%.
- Large businesses (250 or more): 52%.
The report says adoption nearly doubled among micro, small and medium businesses. By sector, information and communication led at 61%, followed by real estate at 45% and business services and administration at 39%.
The share of businesses saying AI was not relevant to them fell from 51% in 2025 to 38% in 2026.
What businesses use it for
Use is concentrated in what the report calls "accessible, low-complexity tools", especially natural language processing and text generation. Among businesses using or planning to use AI, the executive summary found:
- 77% use or plan to use tools based on large language models.
- 81% use it for administration, 71% for marketing and 66% for IT functions.
- 71% cited improving efficiency and productivity as the main reason.
- 57% of adopters use AI constantly, and a further 27% at least weekly.
Most firms keep a person in the loop: 81% apply human input to AI outputs.
What it is delivering
The benefits so far are real but modest. 71% of adopters reported better workforce productivity and 60% more efficient or flexible processes. Half reported an overall productivity increase.
The effect on costs is less clear. 24% of businesses reported lower operating costs, 64% had seen no immediate financial effect and 9% reported higher costs. Of businesses able to estimate their spending, 47% spent nothing on AI in 2025, but 65% expect their AI budgets to rise.
The barriers
Skills are the biggest obstacle. Limited AI skills, expertise or knowledge affected 67% of businesses that had adopted AI and 78% of those planning to. Among businesses not using AI, 65% cited the lack of a clear business case or return on investment. Concerns about accuracy and bias were raised by 56% of adopters and 60% of planned adopters.
The report says the main cost of AI is usually the time and effort needed to put it in place and embed it, rather than the price of the tools.
How this compares with ONS figures
The result is close to the Office for National Statistics' own measure. As we reported in October, ONS found 30% of businesses used AI in September 2026. The two surveys use different methods and samples, so the figures are not identical, but both point to roughly a third of businesses now using AI.
What it means for founders
This section is editorial guidance. The survey suggests the businesses getting value from AI start small: admin, marketing copy and IT support, with a person checking the output. If you have not started, a short trial of one off-the-shelf tool on a single repetitive task is a low-cost way to build the case. Budget for staff time to learn it, since skills, not licence fees, are what most firms say holds them back.
Frequently asked questions
What percentage of UK businesses use AI in 2026?
The government's AI Adoption Survey 2026 found 32% of UK private sector businesses with at least five employees used at least one AI technology, up from 16% in 2025.
Do small businesses use AI?
Yes. The survey found 27% of micro businesses with 5 to 9 employees and 34% of small businesses with 10 to 49 employees used AI in 2026.
What stops businesses from adopting AI?
Limited AI skills affected 67% of adopters and 78% of planned adopters. Among non-adopters, 65% cited the lack of a clear business case or return on investment.
Sources
- GOV.UK: AI adoption survey 2026 (29 October 2026) (reviewed 2 November 2026)
- GOV.UK: AI adoption survey report 2026, executive summary (29 October 2026) (reviewed 2 November 2026)
- GOV.UK: Artificial intelligence adoption research report 2026, full report (PDF) (reviewed 2 November 2026)