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10. October 2025
Uk Businesses Miss The Mark On Ais True Potential
The elusive value of Artificial Intelligence (AI): A UK Perspective
A recent report from Red Hat reveals that despite investments in AI, 89 percent of UK organisations have yet to reap any tangible customer benefits. This paradox raises important questions about the current state of AI adoption in the UK and what steps can be taken to bridge the gap between ambition and reality.
The survey, which polled over 250 IT professionals across the UK, highlights a concerning disconnect between organisational aspirations and practical realities. While 62 percent of respondents cited AI and security as their top IT priorities for the next 18 months, only 32 percent believed they would see significant customer value from these investments by 2026. This stark contrast underscores the need for more effective strategies to harness the potential of AI.
One area where organisations are focusing their efforts is on hybrid or multi-cloud strategies, with 62 percent of respondents considering this necessary in the short term. This trend reflects a growing recognition that traditional monolithic approaches to IT are no longer viable in today’s fast-paced digital landscape. By embracing cloud-based solutions, businesses can tap into scalability, flexibility, and cost savings, ultimately driving innovation and competitiveness.
However, the path to AI integration is fraught with challenges. The high costs of implementation and maintenance remain a significant barrier for 34 percent of respondents, while data privacy and security concerns plague another 30 percent. These issues are compounded by the need to integrate AI into existing systems, which can be a daunting task.
To address these challenges, UK organisations are increasingly turning to open source software as a solution. The survey reveals that 84 percent of respondents consider enterprise open source essential for their AI strategy, with similar high figures for virtualisation, hybrid and multi-cloud, and security. Open-source solutions offer numerous benefits, including transparency, flexibility, and cost-effectiveness.
The prevalence of “shadow AI” – unauthorised use of AI tools by employees – is another pressing concern. This phenomenon, which affects 83 percent of organisations, highlights a disconnect between official IT strategy and day-to-day practices. Open-source software can help address this issue by providing businesses with the transparency and flexibility needed to innovate rapidly without compromise.
The survey also explores the specific areas of AI that are being prioritised. Agentic AI, which involves systems operating with high autonomy, is the top priority for 68 percent of respondents. This focus on autonomous capabilities reflects a growing recognition of the need for AI solutions that can operate independently, making decisions and taking actions without human intervention.
However, the skills gap remains a persistent challenge, with AI being the most urgent area of concern for the second consecutive year. The talent shortage is most acute in agentic AI, the ability to efficiently use AI capabilities, and educating the wider business on how to use AI. Addressing this skills gap will be essential to unlocking the full potential of AI.
Despite these domestic challenges, there is a strong sense of optimism about the UK’s position on the global AI stage. 83 percent of respondents believe the UK is either already a global AI powerhouse or has the potential to become one within the next three years. This confidence is tempered by concerns over talent pipeline, limited public funding, and insufficient private sector engagement.
The complexities of cloud adoption also continue to pose significant challenges. Internal silos, sovereignty concerns, and unclear return on investment are all barriers that organisations must navigate. In response, UK businesses are prioritising operational control and autonomy, securing the software supply chain, and maintaining flexibility in their choice of IT suppliers.
Ultimately, harnessing the value of AI requires a pragmatic approach that balances ambition with practicality. Open-source solutions can play a critical role in facilitating collaboration, sharing best practices, and enabling flexibility in the pursuit of AI-driven innovation. By embracing this approach, UK organisations can navigate the challenges of AI adoption and unlock the full potential of this transformative technology.
The report highlights the importance of open source software in driving AI adoption. Open-source solutions offer businesses a flexible and cost-effective way to innovate, while also providing them with the necessary tools to address the skills gap and implement AI-driven strategies effectively.
The survey’s findings underscore the need for UK organisations to adopt a more collaborative approach to AI adoption. By sharing best practices, collaborating on open source projects, and providing training and education programs, businesses can accelerate their journey towards harnessing the full potential of AI.
In conclusion, the value of AI remains elusive in many UK organisations, but there are encouraging signs that businesses are beginning to grasp the importance of harnessing this technology. By prioritising open-source solutions, addressing skills gaps, and embracing a pragmatic approach, organisations can bridge the gap between ambition and reality and unlock the full potential of AI.