Half Of UK Businesses’ Budgets Go To Tech And AI, Reports Find

Nearly half of all UK business resilience budgets are now directed towards technology and AI, according to new research from consultancy Elixirr. The study shows that 49% of all spending aimed at protecting business operations goes to tech and AI systems. This share is more than triple what is being spent on supply chain diversification at 14% and upskilling staff at 13%.

Elixirr’s findings show that British companies are leaning heavily on technology to deal with stricter regulations and unpredictable markets. For most firms, AI is no longer a tool for basic automation. It is now used to predict disruption, manage compliance as well as to make faster business decisions. Around 87% of business leaders said they are under pressure from regulators to rethink how resilient their operations are, which is influencing the increase in AI spending.

A quarter of UK firms now treat agentic AI (systems that can act autonomously towards a goal) as a top priority. Half of those businesses are already rolling out AI agents across multiple departments. Science and research organisations are leading this charge, with 36% naming agentic AI as a high focus and 56% growing its use across more areas of their operations. Retail and education sectors, on the other hand, trail behind, with just 15% and 13%, treating it as a main priority.

 

Who Controls AI Inside UK Companies?

 
Elixirr found that AI leadership inside companies is scattered. In 37% of firms, AI sits under IT or engineering departments. Another 29% have set up Centres of Excellence, 28% use hybrid models and 27% assign AI work to data teams. This spread has created a lack of clear ownership, which slows progress. Three quarters of companies still do not have a single AI strategy, leaving them vulnerable to weak governance and missed collaboration between departments.

The research shows that larger companies are ahead, as they are more likely to have internal AI teams. These organisations report stronger compliance, quicker decision-making and more efficient scaling of operations. On the other hand, smaller firms are finding it harder to keep pace without a unified strategy.

Even with these gaps, many of the early adopters are already seeing rewards. About 43% of leaders said AI has helped them make faster decisions, 39% reported better compliance results, 38% experienced cost savings, 37% reported greater scalability and 36% saw a fall in operational risk.

 

How Is Outside Investment Changing The AI Scene?

 

The private sector is pouring billions into British AI innovation. NVIDIA recently announced a £2 billion investment to boost the UK’s AI startup ecosystem. The company said the funds will go toward developing new AI businesses, creating jobs and bringing more access to advanced computing power. This investment will target cities such as London, Oxford, Cambridge and Manchester.

 

 
NVIDIA’s founder and CEO Jensen Huang said this investment marks a “Goldilocks moment” for the UK, where research, universities, startups and supercomputing are coming together. Prime Minister Sir Keir Starmer welcomed the move, saying it would strengthen the UK’s position as a global leader in AI. The investment is expected to create new opportunities for founders and researchers and support the government’s AI growth zones.

Accel, Air Street Capital, Balderton, Hoxton Ventures and Phoenix Court are joining NVIDIA’s investment drive. The firms said the partnership will help turn British AI research into commercially successful businesses. Nathan Benaich from Air Street Capital said the UK has exceptional talent but needs better infrastructure to keep pace globally. Hussein Kanji from Hoxton Ventures added that this collaboration will help founders build AI companies with real-world impact.

 

What Does This Mean For The UK Economy?

 
The combination of business investment and global funding is turning the UK into one of the world’s most active AI markets. NVIDIA’s £2 billion commitment follows rising domestic investment, where nearly half of business budgets are now directed at technology and AI. This wave of spending is expected to impact innovation in areas such as healthcare, finance, education and energy efficiency.

British companies are entering an era where operational strength depends heavily on smart systems rather than human-led forecasting alone. While Elixirr’s report notes that many organisations are still struggling to organise their AI strategies, the money flowing into the sector shows that AI has become the first line of defence for modern business.

Adam Hofmann, Principal, Generative AI Strategy & Implementation at Elixirr commented: “AI has overtaken tradition as the backbone of resilience, yet too many firms remain stuck in a defensive mindset while others are rewriting the rules entirely.

“The organisations making real progress are those that go beyond surface-level adoption, embedding AI deep into their operations, reimagining outdated processes, and building a culture that moves at the speed of technology. Playing it safe is now the biggest risk. AI is redrawing the boundaries of what’s possible faster than most organisations can adapt.

“Real resilience in the age of AI isn’t built through one-off tools or pilots, it’s built by rethinking how your business operates. When people, processes, and technology are redesigned with AI at the core, organisations become more adaptable, more responsive and far better equipped to navigate the change ahead.”