81% of UK firms to embed AI by 2025, yet hardware investment lags, survey finds

A new survey from Microsoft has shown 81% of UK firms plan to embed AI by 2025. (Photo: TippaPatt/Shutterstock)

A new study reveals that 82% of UK business leaders view 2025 as a crucial year for AI transformation. According to the survey commissioned by Microsoft, 81% of these leaders plan to integrate AI agents into their operations within the next 12 to 18 months. Despite this strong ambition, a gap persists between intent and action, as only 46% of IT decision-makers (ITDMs) currently incorporate AI readiness into their hardware strategies.

These figures, unless otherwise specified, originate from research and data analytics firm YouGov. The survey involved a sample of 199 IT decision-makers and 276 employees from UK businesses with over 500 employees.

The survey, detailed in the report “Built for Impact: The Vital Role of Devices in Accelerating AI Success,” highlights the urgent need for UK organisations to invest in appropriate hardware to support AI initiatives. It shows that 58% of ITDMs advocate for investments in devices that enable daily access to AI tools. However, 53% of employees report that their current devices are inadequate for hybrid working environments. Additionally, 24% of ITDMs noted that opting for cheaper hardware led to higher long-term costs, while 40% observed improved business outcomes from investing in premium devices.

“While many organisations see the opportunity, too few are moving fast enough to equip their people with devices built for the era of on-device AI,” said Microsoft’s UK surface commercial head, Alan Slothower. “If they haven’t already, enterprise hardware conversations must shift from ‘can we afford to upgrade?’ to ‘can we afford not to?’”

Bridging the gap between AI ambition and action

To bridge this gap, the report outlines three immediate priorities for ITDMs. First, selecting AI-optimised hardware equipped with modern features and robust security is essential. Second, organisations should reconsider refresh cycles to align with rapid AI advancements, adopting flexible procurement models such as staggered upgrades and device-as-a-service. Lastly, investing in skills and insights through role-specific AI training and fostering a culture of innovation is crucial. Tracking usage and ongoing measurement are recommended to ensure progress is visible, recognised, and repeatable.

“IT leaders should ground conversations about hardware procurement in tangible outcomes that everyone in the business can understand and benefit from: namely that AI-enabled devices lower total cost of ownership, energise a diverse, innovation-ready workforce and protect enterprise data,” said Microsoft UK senior surface global black belt Ben Coley.

Another recent study by the IBM Institute for Business Value reveals that 84% of chief marketing officers (CMOs) struggle with fragmented systems, which hinder their ability to use AI effectively. The research indicates that, although 81% of CMOs acknowledge AI’s transformative potential, a notable gap remains in execution.

Over half of the respondents (54%) conceded they had underestimated the challenges involved in converting AI strategies into practical results. Furthermore, only 17% of CMOs feel adequately prepared to incorporate AI into their operations.

Read more: 84% of CMOs struggle with fragmented systems in AI adoption, survey finds