UK businesses believe that better support for artificial intelligence (AI) implementation could have a greater impact on economic growth than reducing taxes or easing regulation, according to new research by Celonis, a leader in Process Mining and Process Intelligence.
A survey of 500 UK business decision-makers revealed that 39% see AI as a key driver of economic productivity, ranking it higher than cutting red tape (36%) or lowering business tax rates (35%). Despite these insights, many organisations are still grappling with challenges in realising the full potential of their AI investments.
While 93% of respondents acknowledged receiving at least some value from their AI initiatives, more than a third (36%) admitted they were struggling to extract the expected benefits. Businesses are also facing broader productivity barriers, including economic headwinds, employee stress, and difficulties in implementing new tools. These issues have become more pressing as nearly 57% of UK companies report turnover challenges, according to the Office for National Statistics (ONS).
Productivity and AI: A Growing Investment
AI is seen as a more effective tool for driving productivity than return-to-office mandates, with 46% of respondents prioritising AI investments compared to 19% supporting office-based work as a solution. Many UK companies are turning to AI to automate labour-intensive processes; employees reportedly spend 154 hours per year troubleshooting tasks that could be streamlined through automation.
Nearly half (48%) of business leaders are already investing in AI-driven productivity solutions, with 39% reporting tangible improvements. However, barriers such as a lack of digital skills (24%) and misalignment between senior management and staff (31%) are hindering the full integration of these technologies.
Academic Insight into AI’s Role in Work
Giuseppe de Giacomo, Professor of Computer Science at the University of Oxford, weighed in on the challenges and potential of AI.
“The growing influence of AI in the workplace is understandably causing some worry among employees that the technology will lead to fewer jobs. However, the kind of AI currently being deployed lacks the deep conceptual reasoning capabilities that people possess. Its understanding is somewhat shallow and unable to replace the strategic or empathetic parts of work that are so crucial,” he said.
De Giacomo emphasised that tools such as Process Intelligence are vital for measuring the impact of AI. By providing detailed insights into how AI affects workflows, organisations can better identify areas where these technologies offer the most value.
Bridging the Gap Between Promise and Reality
While businesses see immense potential in AI, the gap between expectations and results remains a concern. Rupal Karia, Country Leader UK & Ireland at Celonis, highlighted the importance of Process Intelligence in overcoming these challenges.
“AI’s potential to accelerate business productivity is extremely attractive, especially at a time when UK companies face so many barriers to productivity and growth. Yet, there’s a gap between AI’s promise and its ability to deliver tangible results,” Karia explained.
She added that Process Intelligence provides the necessary business context to optimise workflows across departments and systems. This ensures that AI implementations are aligned with organisational goals and can deliver meaningful improvements in efficiency and output.
Addressing the Skills and Strategy Divide
The adoption of AI continues to highlight existing skill gaps within organisations, with one in four companies identifying a lack of digital skills as a challenge. Additionally, disconnects between leadership and employees are impacting morale and slowing the adoption of transformative technologies.
For businesses, addressing these challenges will be essential to fully harness AI’s potential and drive productivity gains in a competitive landscape. Investments in both digital skills development and tools such as Process Intelligence could help bridge the gap, enabling organisations to better realise the opportunities presented by AI.
