New SAP research reveals UK businesses are increasing AI investment and anticipating stronger returns, but data, governance, and workforce readiness remain critical to scaling value.

INVESTING FOR GREATER AI RETURNS

UK businesses are increasing their investment in artificial intelligence (AI), with the average organisation spending £20.6 million on the technology in 2026, a 27 percent increase on 2025, according to new research from SAP.

The second Value of AI in the UK report, produced in partnership with Oxford Economics, finds that businesses expect average returns on AI investment to rise from 22 percent in 2026 to 39 percent within two years. Investment is also expected to increase by a further 45 percent over the same period.

However, translating this growing commitment into sustainable business value remains a challenge. While AI is currently supporting 31 percent of tasks in the average UK business, this figure is expected to reach 50 percent by 2028.

“UK businesses are at a turning point with AI. Organisations are increasing their investments and expecting more in return, but now the focus needs to be on turning that ambition into scalable business value,” says Leila Romane, Managing Director, SAP UK & Ireland.

Romane emphasises the need to move beyond isolated pilots, build strong data and governance foundations, and put people at the centre of AI transformation to drive productivity and competitiveness.

BUILDING STRONGER FOUNDATIONS

Despite growing investment, only 11 percent of UK businesses are taking a strategic, holistic approach to AI investment, up from seven percent in 2025. Meanwhile, 41 percent describe their approach as piecemeal, while a further 40 percent prioritise AI investment at departmental level.

Data quality and availability remain significant barriers, with 70 percent of businesses reporting that these issues prevent them from extracting greater value from AI. More than two-thirds (67 percent) identify integrated data systems as the most impactful enabler of AI readiness.

Governance is another pressing concern as organisations accelerate their adoption of agentic AI. Seven in ten UK businesses are already piloting agent-based use cases, with expected average financial returns from agentic AI rising from £2.7 million in 2025 to £12.6 million over the next two years.

However, 49 percent say AI agents are being deployed faster than they can be standardised and governed. Just nine percent consider their governance skills and expertise fully ready, while 61 percent are still developing the formal processes and oversight required to govern AI effectively.

“Good governance is not a brake on AI adoption – it’s actually the opposite,” says Naomi Weir, Technology and Innovation Director, CBI.

Weir highlights how effective governance builds confidence among businesses, employees, and customers, helping organisations establish the trust needed to scale responsible AI adoption.

PUTTING PEOPLE AT THE CENTRE

Alongside data and governance, workforce readiness will be essential to maximising AI’s potential. While 83 percent of UK businesses are already upskilling or reskilling employees to work alongside the technology, 79 percent agree that realising its value requires workforce transformation beyond technical training.

Furthermore, 67 percent say soft skills are becoming part of core job requirements. As AI takes on more routine tasks, employees can focus on work requiring human judgement, creativity, and strategic thinking.

Mitie provides an example of how targeted AI deployment can improve everyday experiences while creating capacity for more complex work. In three months, the organisation’s AI assistant handled more than 29,000 HR interactions and helped reduce calls to People Support by 36 percent.

“What makes AI exciting is the speed at which a focused investment can improve an everyday experience for thousands of people,” says Claire Meadows, People Transformation Director, Mitie.

Meadows explains that the technology lets colleagues access guidance when needed, freeing specialists to focus on work that depends on human judgement. The results have also strengthened Mitie’s confidence in AI’s potential to deliver meaningful improvements at scale.

Ultimately, SAP’s research points to a clear priority for UK businesses: converting growing AI investment into lasting value will require more than technological adoption alone. Integrated data, effective governance, and a workforce equipped to collaborate with AI will be central to turning ambition into measurable business outcomes.

Read the full report: The Value of AI in the UK 2026