UK businesses increase AI spending, but data quality lags

A report from SAP reveals that UK businesses are now spending an average of £20.6 million annually on artificial intelligence (AI), marking a substantial 27% year-over-year increase compared to last year. This trend is expected to continue, with projections indicating a further 45% rise between 2026 and 2028, potentially bringing average annual spending close to £30 million.

Despite this increase in investment, many UK firms face significant hurdles. A striking 67% of respondents believe that poor data quality is a limiting factor in the effective deployment of AI. This suggests that while companies are willing to invest more, the lack of integrated and high-quality data may be holding them back.

## Why it matters This surge in AI spending reflects a growing confidence in the technology as a driver of innovation and efficiency. However, the concerns over data quality highlight the need for businesses to not only invest in technology but also to improve their data infrastructures.

## What we know The SAP report also highlights a projected increase in the return on investment (ROI) associated with AI, which could grow from 17% in 2025 to as much as 39% by 2028. This indicates that, despite current challenges, companies are beginning to see positive outcomes from their AI investments.

## What remains unclear It is still uncertain how businesses plan to tackle data quality issues and whether they will implement effective solutions to ensure that increased spending translates into tangible results.