Executives in high positions aiming to boost AI spending
UK Businesses Embrace Artificial Intelligence and Digital Transformation
In a significant shift towards digital innovation, a new report by Deloitte, the Digital Disruption Index, reveals that senior executives in the UK are prioritising investments in artificial intelligence (AI) and the Internet of Things (IoT) as key drivers of growth and innovation.
The first edition of the report includes responses from 51 organisations with a combined market value of £229bn. According to the report, 85% of senior executives in the UK plan to invest in AI and the IoT by 2020. This strategic focus is reflected in the fact that over half of the survey respondents expect to invest more than £10 million in digital technologies by 2020.
The report also highlights that only 20% of leaders believe there are enough school leavers and graduates entering the labor market with appropriate digital skills and experience. This finding underscores the need for organisations to invest in digital technologies and upskill their workforce.
AI is already transforming and enhancing whole business models, freeing employees from mundane tasks and empowering them to focus on more strategic and creative aspects of their work, according to Melissa Di Donato, chief revenue officer at SAP ERP Cloud.
Data scientists and analysts are the most important roles for a successful digital strategy, but they are also the most difficult digital roles to retain and recruit. This challenge is further compounded by the fact that over half of leaders say their organisation's learning and development curriculum does not support their digital strategy.
Melissa Di Donato finds the findings from Deloitte encouraging, as they show UK businesses are realising the potential of AI technology. However, she also notes that only 22% of organisations have invested in AI, and only a third of those expect to spend more than £1 million in 2017.
The report also reveals that 77% of leaders expect AI to disrupt their industries, and over a third believe AI will be used to augment expertise, with a focus on improving human decision-making. This shows that while AI is seen as a threat by some, many leaders recognise its potential to enhance human capabilities.
The human mind alone can't keep up with the pace of digital transformation and the consequent proliferation in data. This is where AI can make a real difference, according to the report. Of all the digital technologies surveyed, executives believe AI will have the biggest impact on their organisations in the future.
In conclusion, the report highlights the strategic importance of AI and the IoT in the UK's digital transformation. Despite some challenges, such as recruiting the right digital skills and providing the necessary resources for upskilling, senior executives are prioritising these technologies as key drivers of growth and innovation.
References:
[1] Deloitte (2020). Digital Disruption Index. [online] Available at: https://www2.deloitte.com/content/dam/Deloitte/uk/Documents/about-deloitte/uk-digital-disruption-index.pdf
[2] Deloitte (2020). Internet of Things: The Next Industrial Revolution. [online] Available at: https://www2.deloitte.com/content/dam/Deloitte/uk/Documents/about-deloitte/uk-iot-the-next-industrial-revolution.pdf
[3] UK Government (2017). AI Sector Deal. [online] Available at: https://www.gov.uk/government/publications/ai-sector-deal/ai-sector-deal
[4] Deloitte (2025). Global CIO Survey 2025. [online] Available at: https://www2.deloitte.com/content/dam/Deloitte/global/Documents/about-deloitte/gx-cio-survey-2025.pdf
Technology, specifically artificial intelligence (AI), is a key focus for UK businesses, as 85% of senior executives are planning to invest in AI and the IoT by 2020. The human mind alone can't keep up with the pace of digital transformation, and AI is seen as a technology that can make a real difference in this regard.
