UK firms eye AI spending in 2026, but skills gap threatens rollout
A third of British businesses plan to invest in AI in 2026, yet new data suggests the bigger challenge may be readying staff for the technology, rather than rolling it out at speed.
Research from Lloyds Bank’s recent business barometer revealed that 33 per cent of firms intend to invest in AI tools next year, citing a boost in productivity as the main incentive.
However, the research also found that more firms say they are planning to invest in training staff than in the technology itself, which may become cause for concern over skills and capability as AI adoption accelerates.
AI training key to rollout
Among the 1,200 companies surveyed, 35 per cent plan to increase spending on team training in 2026, as firms look to upskill workers and make better use of new technologies.
Improving productivity and strengthening digital skills were cited as top priorities for the year ahead.
Paul Kempster, managing director for commercial banking coverage at Lloyds Business & Commercial Banking, said: “These investment priorities will support businesses’ long-term growth, helping them capitalise on opportunities while building a firm foundation well beyond 2026”.
The emphasis on skills investment comes in the wake of Rachel Reeves’ £1.5bn skills package announced in her Autumn Budget, designed to tackle labour shortages by boosting training across sectors, including digital and AI-related roles.
The reforms, hailed at the time as the biggest shake-up of the skills system in a decade, included reforms to apprenticeships, digital training programmes and incentives to help employers address chronic gaps in tech expertise.
Cautious adoption
Earlier research from Lloyds revealed clear benefits from AI adoption, with 82 per cent of users reporting productivity gains and 76 per cent seeing improved profitability.
Yet, uptake still seems uneven, with retailers reporting the most substantial productivity impact, while manufacturers were most likely to see profit improvements.
But practical barriers continue to slow adoption, including high upfront costs, a lack of tech-specific skills, data privacy concerns and soaring energy demands.
Meanwhile, over half of businesses surveyed also said they plan to make some form of AI investment over the next year, though only a quarter of those yet to adopt the technology said they expect to start using it.
This cautious approach comes as business confidence shows signs of stabilising, with the report revealing that confidence rose to 47 per cent in December, up ten points since the start of 2025, while optimism about the wider economy reached a four-month high.
Still, softer consumer demand remains a bottleneck, as expectations of falling prices weighed on spending, with data from Sensormatic Solutions showing UK in-store footfall fell nearly seven per cent year on year on the final Saturday before Christmas.