UK businesses increase AI investment despite economic uncertainty, Barclays index finds

New Barclays research shows UK firms are pressing ahead with AI roles, training and technology investment, even as many hold off for the Autumn Budget

The Barclays Business Prosperity Index reveals that despite global economic challenges and rising energy costs, UK firms are accelerating AI adoption and upskilling their workforce to drive growth.

Analysis of more than one million Barclays clients shows resilient but cautious activity. The data indicates that 42 per cent of firms plan to hire for AI-focused roles, while one-in-five are already creating new positions dedicated to AI, as businesses see potential for the UK to be a world leader.

In a sign of confidence, businesses plan to increase investment by 5.5 per cent over the next 12 months, with 89 per cent confident in their own prosperity. However, over half (55 per cent) are delaying investment decisions until the Autumn Budget, with 43 per cent expecting to increase investment once it is delivered.

Nine-in-10 businesses (89 per cent) are looking to solve business problems with AI over the next two years. Improving data analysis, forecasting, business intelligence, customer experience and reducing operational costs are the main priorities.

Over the past year, businesses have already invested an average of £235,600 in AI and emerging technologies, with 68 per cent planning to increase spending in the year ahead. Investment is higher among large corporates of more than 250 employees, at £400,000 on average, compared to £225,500 among medium enterprises and £125,250 among small businesses.

AI is not the only priority. Firms also plan to increase overall investment by 5.5 per cent over the next 12 months, up from 1.7 percentage points in Q1. Key areas of focus include staff training and development (42 per cent), digital products (37 per cent) and R&D (37 per cent).

The investment drive reflects a significant workforce gap, with AI and digital technology skills cited as the most in-demand. Four in 10 (39 per cent) identified this as the greatest skills shortage, particularly in financial services (52 per cent), IT and telecoms (48 per cent) and within the tech sector itself (51 per cent).

Reflecting growing demand for AI skills, almost a third of businesses either have already (11 per cent) or are currently (21 per cent) hiring for AI-focused roles, with 42 per cent planning to do so.

The data is part of the Q2 Barclays Business Prosperity Index, which combines anonymised client data from over one million Barclays business clients with survey data from 1,000 business leaders, alongside analysis from the Centre for Economics and Business Research.

Among those already using AI, almost a third (32 per cent) report improved idea generation and innovation, 31 per cent cite better decision-making, 30 per cent have seen improved customer experience or services, and a further 30 per cent have reduced operational costs.

Seven-in-10 business leaders (72 per cent) believe the UK can be a global AI leader, with 19 per cent believing it already is.

For those who do not yet see the UK as a leader, the most important enablers include clear and innovation-friendly AI regulation (27 per cent), support for regional AI training centres and skills hubs (25 per cent), sustained public and private investment in AI research and start-ups (24 per cent), and stronger partnerships between business and education (24 per cent).

Business leaders remain confident in the prosperity of their own firms (89 per cent), with 65 per cent confident in both the UK and global economy, although this has softened slightly since Q1 2025 (67 per cent for both). Concerns around inflation (33 per cent) and increased utility costs (22 per cent) remain the biggest barriers to growth.

Barclays’ anonymised client data comparing Q2 2024 and Q2 2025 indicates a resilient but muted landscape. Cash inflows fell slightly by 0.8 per cent year on year, current account cash balances declined by 0.4 per cent, and overdraft usage increased by 3.3 per cent. Lending remained subdued at -5.9 per cent on average, but firms borrowed £9bn from the Barclays Business Prosperity Fund in H1 2025.

Three quarters of leaders have not borrowed to invest in the past 12 months, with 40 per cent considering but deciding against it. High interest rates (31 per cent), economic uncertainty (27 per cent) and waiting for stability (25 per cent) were the main reasons cited.

More than half (55 per cent) are delaying investment decisions while awaiting clarity from the Government’s Autumn Budget. Two in five (43 per cent) expect to increase investment afterwards, rising to 58 per cent among large businesses and 53 per cent among medium-sized firms.

Among those holding back, the top areas of postponed spending are facility upgrades or expansions (37 per cent), research and development (36 per cent), new equipment, machinery or vehicles (35 per cent), and staff training (34 per cent).

Business tax cuts top the list of desired measures (45 per cent), particularly among small and micro businesses (51 per cent each). Other priorities include investment incentives (37 per cent), public infrastructure spending (36 per cent) and support for workforce training and upskilling (36 per cent).

Three quarters (73 per cent) believe tax cuts would increase confidence in business success. Two in three (65 per cent) say investment incentives would have the same effect, while reducing the regulatory burden (63 per cent) and increasing funding for regional development (63 per cent) are also seen as important.

Matt Hammerstein, Chief Executive of Barclays UK Corporate Banking, said: “It’s encouraging to see an intent to invest from UK businesses, with many turning that into action. Against a backdrop of global uncertainty, there’s more to do to build confidence in the UK as a place for businesses to grow and scale.

“Our research suggests that AI is becoming a key tool to drive innovation, encourage investment and upskilling to lift productivity and build confidence in the UK as a global business hub.”

This article was originally published by 9am Business and a revised version is reproduced here as part of The European Digital Content Exchange Network, a collaborative initiative that shares editorial expertise and quality, original journalism between established media outlets.


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