Alice Chambers |
The UK could make £550 billion ($696 billion) by 2035 with the adoption of artificial intelligence and cloud technology, finds new report commissioned by Microsoft.
AI will have an average return on investment of more than 5:1 over the next 10 years, meaning that for every £1 ($1.3) spent by companies, the UK economy will grow by £5 ($6.3). The report, which was carried out by Public First, attributes this to AI helping to make individual workers more productive, enhancing skills across workforces, reducing waste, speeding up scientific innovation and enabling new types of products and services.
The report also found that the UK has “the most advanced tech sector in Europe, with the highest level of private investment, the most mature consumer digital market and globally leading companies such as Wise, Sage and Builder.AI” and is “second behind only the US in its ability to take advantage of AI”. However, there are three bottlenecks that the UK must overcome to achieve its full potential: infrastructure, commercial awareness and digital skills. Any delays in AI rollout could cost the UK £150 billion ($190 billion) by 2035.
“The UK risks foregoing significant economic gain if we let progress slip over the next five years,” says Hugh Milward, vice president of corporate, external and legal affairs at Microsoft. “Planning, power and permitting are critical to unlocking the sector’s ability to invest quicker and make the most of the opportunity for the UK.”
Recent initiatives like Microsoft’s £2.5 billion ($3.2 billion) investment in AI infrastructure and skilling in the UK aim to maintain the country’s momentum with AI adoption.