UK Organisations to Increase AI Investment by 29% in 2025 as Employee Confidence Grows

UK organisations are set to increase their investment in artificial intelligence by an average of 29% during 2025, according to new data from the latest Freshworks AI Workplace report. The findings show that 54% of organisations plan to raise their AI budgets, while only 4% intend to reduce their spending.

This rise in investment reflects AI’s growing influence on business performance and employee satisfaction. The report reveals that 61% of employees now view AI as essential to their roles, and 72% report a positive impact on their workload since using AI-powered tools.

As AI tools become more accessible and their benefits more widely recognised, organisations are demonstrating greater confidence in their value. At present, 74% of UK organisations believe that IT vendor pricing for AI tools is appropriate, supporting the case for continued investment.

AI Adoption Driven by Employee Experience and Productivity

The increase in AI spending is closely linked to improvements in employee experience and organisational productivity. With 80% of employees now describing AI as a powerful tool and 64% rating the quality of AI solutions as excellent, there is a growing sense that these technologies are delivering meaningful outcomes in the workplace.

The report shows that employers are also increasingly expecting AI fluency from their workforce. In response, 63% of organisations plan to fund AI upskilling initiatives in 2025. This focus on training reflects a shift in expectations around digital capabilities and the integration of AI into everyday roles.

Ramping Up Investments

Ian Tickle, Senior Vice President and General Manager International at Freshworks, said, “The significant jump in AI investment by UK organisations underscores the transformative impact AI is having on business operations and employee experiences. As both the accessibility and resulting benefits of AI tools continue to increase, businesses across the UK are now ramping up investment levels to deliver them even greater returns.”

As AI continues to be embedded across sectors and job functions, UK organisations are aligning their strategies with both employee demand and operational goals. The data from the Freshworks report signals a broad commitment to AI as a critical element of workplace development and the wider future of work.