Jessica O'ConnorThe UK is witnessing a rapid surge in artificial intelligence (AI) adoption, with over half of all businesses now leveraging the technology to boost productivity and revenue, findings from Amazon Web Services (AWS) have revealed.
However, the report warns that a two-tier AI economy is emerging, driven by stark differences in how startups and large enterprises implement AI.
According to the Unlocking the UK’s AI Potential 2025 report, AI usage among UK businesses jumped from 39% to 52% in the past year – outpacing the European average growth of 27%.
More than 92% of AI adopters reported increased revenue, with an average rise of 28%, and nearly four in five experienced “transformative or significant” productivity gains.
Despite this momentum, the report highlighted a widening gap in how businesses apply AI.
Startups lead the charge by embedding AI into core operations and developing entirely new products, while larger firms often used AI only for surface-level efficiency tasks like scheduling or data processing.
As a result, 34% of startups have reached the most advanced stage of AI adoption, compared to just 14% of large enterprises.
The report said: “This emerging divide could limit the UK’s broader economic gains from AI.”
“Large enterprises contribute 48% of UK turnover. If they lag in AI integration, the country risks missing out on significant productivity and competitiveness benefits.”
The Government’s AI Opportunities Action Plan, launched this year, aims to address this challenge by accelerating adoption, strengthening public sector use of AI, and closing the digital skills gap.
Public sector action is seen as a major lever for change. Over three-quarters (78%) of businesses said greater AI adoption in Government services would encourage them to invest more in AI themselves.
Already, organisations like the Department for Work and Pensions (DWP) and Swindon Borough Council are using generative AI to streamline services and save costs.
Yet digital skills remain a key obstacle. Nearly half (46%) of UK businesses said a lack of digital expertise has slowed down their progress, up from 32% last year.
The report found that AI skills are expected to be required in 47% of new UK jobs within three years, but only 27% of companies feel adequately prepared.
