UK businesses, on average, are spending £15.94 million on AI this year, with companies expected to increase their AI investments by an average of 40% in the next two years, according to new research from SAP SE (NYSE: SAP).

The study, The Value of AI in the UK: Growth, people & data, produced with Oxford Economics, shows the average UK business is already realising significant returns of 17% (£2.7m), from AI investments, with ROI forecast to almost double to 32% (£7.5m) by 2027.

Over three-quarters (78%) of UK executives believe AI will achieve a positive return within one to three years, and more than half (52%) say it delivers returns faster than any other technology.

Some of those returns are forecast to come from agentic AI. The average UK business expects ROI of 11% from intelligent agents within two years, equivalent to £2.7 million. These systems are designed to work across functions, for example linking finance, supply chain, and workforce planning.

Fragmented adoption undermines potential

Despite this momentum, most AI programmes remain fragmented.

• 42% of UK businesses describe their investment as piecemeal

• 37% describe their investment as being department led

• And 15% describe their investment as ad hoc

• Only 7% are pursuing AI through a strategic, enterprise-wide plan

• This gap may be why 70% of UK businesses say they are unsure whether AI is delivering its full potential.

“UK businesses have the ambition, talent, and data to lead in AI, although too many are still treating it as a ‘technology project’ rather than a holistic business transformation,” said Leila Romane, Managing Director, SAP UK & Ireland (pictured right). “The real opportunity is to use AI to reimagine how companies operate, how people work, and how value is created for customers. When UK organisations take that broader, strategic approach to adopting the technology and embedding it throughout their business, the results will become tangible. We’ll see faster innovation and stronger growth, which can only mean a more competitive economy.”

Shadow AI highlights the people gap

Employees are enthusiastic adopters of the technology but 68% of organisations say their staff use unapproved AI tools – known as ‘shadow AI’ – at least occasionally. Almost half (44%) of businesses have already seen data or IP exposure and 43% report security vulnerabilities as a result of shadow AI.

This comes as 60% of companies admit staff have not completed comprehensive AI training, potentially leaving employees eager but ill-equipped to use AI responsibly. While 71% are beginning to reskill or upskill staff, progress remains inconsistent.

“AI investment must go hand in hand with people investment,” added Leila Romane, Managing Director, SAP UK & Ireland. “Right now, employees are running ahead of their organisations, using AI tools because they see the opportunity, although they are not always aware of the risks involved. If we give them the training, sanctioned tools, and create safe opportunities for experimentation, that energy can become a real driver of transformation and growth.”

Marc Bourde, EMEA SAP Alliance Leader at PwC UK (pictured left) said, “Organisations need to create psychological safety around AI experimentation. Employees need to feel comfortable asking questions, reporting issues, and even making mistakes as they learn. The companies that will thrive are those that can balance innovation with governance, encouraging exploration while maintaining appropriate controls and ethical standards.”

UK businesses are already seeing value

There are encouraging signs of UK businesses starting to realise value from AI, with 36% of UK businesses reporting significant improvement in decision-making, 34% in customer engagement, and 31% in time to value. These outcomes matter in a service-led economy, where knowledge and customer relationships drive growth.

However, unless investment in AI is matched by clear strategy, strong data foundations and the right skills, there is a risk that enthusiasm will not turn into productivity growth to ensure the UK remains competitive.

“Too often, AI adoption looks more like filling a shopping basket with tools, rather than building a strategy,” said Katie King, Published Author & CEO of AI in Business. “The companies seeing real value are the ones that are linking data, applications, and intelligence into one system. In marketing and sales, that means building end-to-end use cases rather than isolated experiments and connecting customer insight to delivery and results. Moving fast is important, but it must be strategic. The businesses doing this are already turning AI from a cost line into a genuine source of competitive advantage.”

Read the full report here

 

Methodology 

SAP commissioned Oxford Economics, an independent research services provider, to script and host an online quantitative survey of respondents fielded between July and August 2025. 

The research is based on a representative sample of global businesses. The sample comprised of 1,600 senior executives across eight global markets, including 200 respondents from the United Kingdom. The sample was evenly distributed between midmarket organisations (500 – 1,500 employees) and enterprises (1,500 or more). Respondents were qualified to ensure they were at least director level and above. 

Respondents were asked to provide financial estimates in USD. GBP figures are based on an exchange rate of 0.7381, using the Bank of England rate as of 1st September 2025.