Over half of businesses in the UK’s Information and Communication sector are yet to adopt artificial intelligence (AI) technologies, according to data from the Office for National Statistics (ONS) Business Insights and Conditions Survey (BICS).

The findings, analysed by Distinctly, a London-based digital marketing agency, reveal several obstacles hindering AI implementation within the sector.

Among the key barriers, 11% of businesses cited a lack of expertise, while 10% reported challenges in identifying practical applications for AI. Cost concerns were noted by 11% of respondents, and 6% identified security risks as a factor slowing adoption. These challenges underscore a significant skills gap within the sector, impeding progress in leveraging AI technologies.

Despite the hurdles, businesses currently using AI have shown varied approaches to its integration. Some 39% of AI users have developed in-house technologies, while 47% have opted to purchase ready-made AI software. A smaller segment, 23%, outsourced their AI processes to external providers.

Practical AI Applications Begin to Emerge

Early adopters within the sector are exploring specific applications for AI technologies. Around 23% of businesses reported using AI-powered text generation tools, such as large language models (LLMs), while 13% utilised AI for visual content creation. Additionally, 19% of organisations have implemented AI for data processing purposes.

Distinctly’s Integrating AI Processes into Digital PR report highlights the benefits of a phased approach to AI adoption. The agency’s six-month experimental period saw a 35% improvement in AI competency and a 67% increase in understanding of AI tools among executives.

Phased AI Integration Proves Effective

Matt Foster, Senior Digital PR Manager at Distinctly and author of the Integrating AI Processes into Digital PR whitepaper, emphasises the importance of gradual adoption. “Testing across a phased approach has been the key to responsible use and maintaining quality output,” he explained. Foster noted that by implementing generative AI and LLMs in a controlled manner, the team was able to focus on upskilling while identifying meaningful use cases.

He also highlighted the limitations of AI, stating, “AI is not a magic solution and absolutely requires quality human input and critical evaluation. Experimentation revealed areas where AI tools fell short, prompting the development of policies to ensure human input remains central to its use.”

Methodical Adoption Aligns AI with Existing Processes

Chloe Chamberlain, Senior Digital PR Strategist at Distinctly and co-author of the whitepaper, echoed the sentiment of careful integration. “Adopting AI methodically – away from the hype – has helped to organically improve our service,” she said. Chamberlain pointed to workshops and experimentation as critical to integrating AI tools like ChatGPT into existing workflows.

“Setting a standards and use policy during the research phase ensured high output quality while enabling a team-wide understanding of AI’s potential,” she added. Chamberlain also stressed the importance of knowledge sharing to foster balanced development, highlighting the agency’s early successes in improving efficiency and effectiveness through AI use.

Future of AI in the Digital Sector

The findings indicate that while adoption rates remain low, the potential for AI to drive efficiency and innovation in the Information and Communication sector is significant. A structured, collaborative approach to AI integration, as demonstrated by Distinctly, offers a model for overcoming common barriers and ensuring that new technologies are implemented responsibly.

As organisations grapple with the challenges of AI adoption, balancing human expertise with machine capabilities will be key to achieving sustainable success in the digital sector.