London leads UK in AI adoption as North faces growing gap

New data from a recent survey highlights a significant disparity in artificial intelligence (AI) adoption between businesses in London and those in the North of England.

The study, commissioned by ANS in conjunction with YouGov, surveyed 1,000 IT decision-makers across the UK to gauge attitudes and integration of AI technology within business operations.

The findings reveal that 82% of London-based businesses see AI as important for their long-term strategic goals. This contrasts sharply with only 44% of businesses in the North who share the same sentiment regarding the significance of AI.

London businesses are also more likely to expect changes in workforce roles related to AI. While 76% of London respondents anticipate an increase in AI-related job roles over the next year, this proportion drops to 37% among Northern businesses.

Actual adoption figures reinforce this gap: 37% of London businesses report ongoing integration of AI into some business practices, compared to only 18% in the North.

Within the North, the North West region demonstrates a stronger focus on AI compared to its neighbours. In the North West, 27% of surveyed businesses consider AI very important for long-term strategic goals. This figure falls to 4% in the North East and 6% in Yorkshire and the Humber.

The North West also leads in expectations for revenue impact from AI, with 15% of businesses anticipating significant benefits. By contrast, just 4% of businesses in the North East and 8% in Yorkshire and the Humber expect similar revenue growth from AI adoption.

Government initiatives such as the AI Opportunities Action Plan, which will introduce AI Growth Zones to encourage investment in AI infrastructure, are designed to address regional disparities and support broader adoption of AI technology across the country.

Many businesses, regardless of region, agree on the advantages of AI, particularly in enhancing operational efficiency. Surveyed data show this benefit is recognised by 55% of London businesses, 60% in the North West, 70% in the North East, and 52% in Yorkshire and the Humber.

Commenting on the data, Richard Thompson, Chief Executive Officer at ANS, said: "The significant differences in sentiment towards AI and adoption of it across the UK are shocking. This is a technology with transformative potential, for businesses of all sizes, entire industries and society as a whole. While the government has an increased focus on AI investment in the North, Northern businesses in particular should be looking inward to assess how they harness the power of AI within their business before they get left behind.

"Efficiency gains are just the tip of the iceberg; AI can drive positive impact at a strategic level, assisting with decision-making and new product sets, down to everyday operations across all business units. No matter their size, businesses shouldn't feel daunted by the prospect of AI, but instead they should look to explore the art of the possible. AI is here to stay, and those who embrace it will be sure to unlock new opportunities."

Kyle Hill, Chief Technology Officer at ANS, stated: "Becoming AI-ready is critical for all businesses if they want to stay ahead. Our data shows that Northern businesses are at risk of levelling down if they don't adapt and embrace this emerging technology quickly. But, equally, they should take the time to understand which systems would be most beneficial for them and invest in creating robust foundations first.

"Having the right infrastructure and processes in place is key, from the right cloud technologies to the structure of your data and comprehensive staff training. All businesses, no matter their size or location, deserve to take advantage of AI and reap the long-term benefits. If they dream big but start small, it will make the AI adoption journey much smoother."

Manchester's status as the largest tech hub outside London is seen as a strength for the North West, supporting the development of local skills and promoting innovation. The region's leadership in AI awareness and adoption underscores its potential to narrow the technology gap.

The report's authors urge businesses, especially in lagging regions, to prioritise AI readiness and investment to avoid falling further behind and to take advantage of forthcoming infrastructure and talent development opportunities.