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A third of UK businesses plan AI investment in 2026 as confidence ticks up

December 30, 2025

A third of British businesses are planning to invest in artificial intelligence in 2026 as firms sharpen their focus on productivity, skills and technology in an increasingly competitive market.

Research from Lloyds Bank shows that AI is becoming a central pillar of growth strategies, with companies looking to automate processes, improve efficiency and strengthen long-term competitiveness.

The Lloyds Business Barometer, based on a survey of 1,200 firms, found that productivity improvement is the top priority for businesses heading into the next year. Alongside AI investment, 35 per cent of companies said they plan to invest in team training in 2026, recognising that new technologies require new skills to deliver real value.

Paul Kempster, managing director for commercial banking coverage at Lloyds Business & Commercial Banking, said the findings highlighted a shift towards more strategic, future-focused investment.

“These are priorities that will support businesses’ long-term growth,” he said. “They help firms not only capitalise on opportunities in the year ahead, but also build strong foundations well beyond 2026.”

Earlier research from Lloyds underlines why AI is attracting growing attention. In a study published in June, 82 per cent of businesses using AI said it had boosted productivity, while 76 per cent reported an improvement in profitability. Retailers reported the strongest productivity gains, while manufacturers were most likely to see a positive impact on profits.

Despite the momentum, barriers remain. Businesses cited the cost of AI tools, shortages of specialist skills, data privacy concerns and energy usage as factors slowing adoption. Even so, 56 per cent of firms said they intend to make new AI investments over the next year, while a quarter of those yet to adopt the technology said they plan to do so.

The barometer also points to a modest improvement in sentiment. Overall business confidence rose by five points in December to 47 per cent, up ten points over the course of 2025. Optimism about the wider UK economy climbed to a four-month high, with many firms expecting price pressures to continue easing.

However, caution remains evident on the consumer side. Early indicators suggest weaker high-street performance ahead of Christmas, with in-store footfall on the final Saturday before Christmas down almost 7 per cent year on year.

Taken together, the data paints a picture of businesses looking inward, investing in technology and people to drive efficiency, while remaining alert to fragile consumer demand and ongoing economic uncertainty.