UK tech firms risk becoming obsolete due to lack of AI strategy

Executives from half of the UK’s tech companies believe their business model will not exist by 2023 due to the rapid evolution of artificial intelligence and the lack of investment in the sector.

A new study from Microsoft revealed that the UK has potential to lead the world in the development of AI but only if companies “quickly embrace it”.

“Around 41% of business leaders believe they will have to dramatically change the way they work within the next five years and over half (51%) do not have an AI strategy in place to address those challenges,” said the report.

Clare Barclay, chief operating officer of Microsoft UK, said: “AI represents a huge opportunity, but only if UK organisations embrace its application in the right way. AI is not about making UK businesses leaner, it’s about how we use the technology to make them stronger. In doing so, we can make our work more meaningful and boost UK competitiveness.”

British company Centrica is already using the technology to analyse data, Great Ormond Street Hospital is improving patient outcomes, and Confused.com is using AI to empower its workforce.

According to another report from PwC, AI could help the UK economy grow GDP by up to 10.3% and spending power would also considerably increase in each household. At a time when Brexit uncertainty looms over the country, Britain could use the technology to get a head start before the effects of a potential crash out of the European Union damage the country’s economy.

Lord Clement-Jones, chairman of the House of Lords select committee on artificial intelligence, said: “Without doubt, artificial intelligence can provide a great opportunity for British society and the economy. Today the UK enjoys a position of AI innovation, so as we enter a crucial stage in its development and adoption, the country has a clear opportunity to be a world leader. For this, an ethics-backed partnership between business academia and government will be pivotal.”

The Microsoft study also found that 59% of UK employees are open to experimenting with AI and just over half (52%) believe using the technology to automate tasks can create time for more meaningful work.