Half of UK firms will invest in artificial intelligence, but IBM and CBI warn against growing digital divide

Opinions are split on the uses of AI in business

Artificial intelligence is the next big thing - or it's a gimmick with no real future in business. Your belief depends on your point of view, your industry and your role - and opinions in the UK are neatly split down the centre.

A survey by the Confederation of British Industry (CBI) and IBM shows that almost half of UK firms fall on the ‘next big thing' side of the fence, expecting AI to be both widespread and transformational. However, both organisations warned that the UK must act quickly to be ready for the change that AI and similar developments bring: only a third of businesses feel that they have the skills necessary to adopt data-driven technologies.

The survey, covering 160 businesses, found that investments are high in areas that were viewed as niche just a few years ago, but are now central to enterprise IT: cloud (73 per cent), mobile technology (79 per cent) and security (71 per cent).

42 per cent of companies plan to invest in AI over the next five years - on top of the 21 per cent who have already done so in the last 12 months - and the same proportion will spend money on the internet of things. 49 per cent believe that AI will fundamentally transform their industry or market.

It is thought that AI can lead to great efficiency (by 78 per cent of firms) and profits (68 per cent). Benefits to consumers (71 per cent) and collaboration (70 per cent) are also leading themes.

A third of respondents described themselves as ‘digital pioneers', while slightly less (27 per cent) say that they are followers. 52 per cent of pioneers have already invested in AI, but 47 per cent of followers do not plan to invest at all.

The CBI found that skills (45 per cent), security (37 per cent) and investment (37 per cent) were identified as the three major factors slowing AI uptake in the UK.

Josh Hardie, CBI Deputy Director-General, said:

"British businesses are directing resources into new technology, with cloud, mobile and security investments forming the UK's digital backbone. But a major shift is on the horizon as artificial intelligence gains momentum, with half of firms believing their industry will be completely transformed by it in the years to come.

"The digital gap risks becoming a chasm with artificial intelligence set to transform the face of UK businesses."

David Stokes, new COO of IBM Europe, added, "As we enter a new era of cognitive technology British businesses have an opportunity to make Artificial Intelligence part of their vision for the future. We are currently at a tipping point where Artificial Intelligence is becoming mainstream so now is the time for the country to gain global leadership by seeing it as a creator of economic value."

Concerns about AI and automation have been widespread for years, especially as it relates to job losses. Recent research by Cornerstone Capital Group suggested that robots could replace almost half of the retail workforce in the USA over the next decade, as reported by Computing's sister site, The Inquirer. However, Professor Peter Cochrane OBE, co-founder of Cochrane Associates, told us, "The human mind is fundamentally incapable of dealing with many of the problems we now face: they are non-linear and complex. We really do need the help of artificial intelligence systems to address the diagnosis of disease; the outcome of conflict; and the implementation of government policies. We are plagued with short-term thinking and unintended consequences; so, far from being a threat and destroying jobs, AI is going to be one of the great enablers and great creators of future employment."