UK Businesses’ AI Spending Rises 27% to £20.6 Million a Year

UK businesses now spend an average of £20.6 million a year on artificial intelligence, a 27% increase from £16.2 million in 2025, according to new data from SAP. SAP anticipates spending will rise by a further 45% between 2026 and 2028, bringing the annual average close to £30 million.

The data also forecasts returns on investment (ROI) rising from 17% in 2025 to 22% this year and as high as 39% by 2028. Yet only 11% of businesses are said to take a strategic, company-wide approach to AI investment. Around two in five prioritize spending at department level, according to the report.

About 70% of UK businesses are piloting agentic AI use cases. Respondents believe the technology could deliver a 4.7x increase in financial returns over the next two years. Among AI agent users, 49% worry the tools are being introduced faster than they can be governed, while 9% say their governance skills and expertise are fully ready. Three in five (61%) are developing governance processes or report limited or no readiness.

Respondents also cite poor data quality (71%), incomplete information (70%), siloed systems (65%) and limited real-time data access (62%) as barriers. Two-thirds (67%) expect integrated data systems to become the most important enabler of AI readiness. SAP UK&I managing director Leila Romane called for turning investment ambition into scalable business value. CBI Technology and Innovation Director Naomi Weird said good governance supports AI adoption.