AI becomes UK businesses’ first line of defence amid regulatory uncertainty
AI has moved from an experiment to the primary ‘first line of defence’ for UK businesses facing regulatory scrutiny and operational uncertainty.
According to new data from consultancy firm Elixirr, nearly half of UK businesses stated that all resilience-focused investment now flows to technology and AI.
This comes as an overwhelming number of UK business leaders (87 per cent) have stated that they are being compelled to reassess their operational resilience due to pressure from regulators.
As a result, investments in AI and technology have more than tripled the amount being spent on supply chain diversification (14 per cent) or upskilling talent (13 per cent).
With one in four businesses now treating agentic AI as a top strategic priority, half are rapidly rolling out AI agents across multiple business functions.
This is because, where AI has taken hold, according to Elixirr, early adopters are already pulling ahead, with 43 per cent of leaders reporting faster decision-making and over a third noting cost savings.
Adam Hofmann, principal at Elixirr, explained: “The organisations making real progress are those that go beyond surface-level adoption, embedding AI deep into their operations, reimagining outdated processes, and building a culture that moves at the speed of technology.”
“Playing it safe is now the biggest risk,” he added.
Persistent fragmentation
However, despite those positive views, persistent fragmentation in AI ownership, along with uncertainty around return on investment, means many organisations are still struggling to unlock AI’s full potential.
Three-quarters of firms reported that they still lack a unified AI strategy, leaving them exposed.
This comes after the Financial Conduct Authority (FCA) reiterated its decision not to draft new AI-specific laws, insisting that the best way to manage the technology’s rapid rise is through testing and collaboration rather than rushing to legislate.
While data in September revealed that as the financial services industry invests billions of pounds in AI, firms have been lacking adequate measures to ensure safe usage.