UK businesses race to turn investment into competitive advantage

UK businesses race to turn investment into competitive advantage

Martin Cook

Burges Salmon has highlighted strong progress in digital enablement across UK organisations, alongside an increasing focus on governance, workforce capability and long-term value.

Its new report, Beyond Digital Adoption, based on data collected from research conducted by YouGov, shows that 68 per cent of organisations are already using AI tools, underlining the extent to which digital technologies are becoming embedded in day-to-day operations.

Alongside this, 68 per cent of organisations are planning to invest in digital infrastructure over the next 12–24 months, demonstrating continued commitment to transformation despite ongoing cost pressures.

However, as adoption accelerates, the findings also point to a growing emphasis on how technologies are governed and embedded, with 41 per cent of organisations expressing confidence in their AI risk management frameworks, while 29 per cent highlight areas where further development may be needed.

Martin Cook, partner, said: “While some organisations are struggling with digital adoption, these findings reflect the strong foundations many organisations have already built as digital technologies become increasingly embedded in business operations.

“As businesses continue to invest and scale their use of AI and data-driven tools, the focus is of leaders shifts towards governance, integration and long-term value. In our experience, those businesses that take a coordinated approach to aligning operational use cases with their technology, legal, supply chain and risk frameworks will be best placed to translate progress into sustainable, measurable outcomes.”

The report explores how senior business leaders are responding to the pressures and opportunities of digital change and five key themes were identified from the research: digital enablement gap, AI adoption & governance, cybersecurity, data & compliance, workforce & skills transformation, and investment & infrastructure.

Many organisations have already established strong digital foundations, with 42 per cent reporting advanced or embedded digital enablement. However, progress remains uneven, with 25 per cent still at an early stage or yet to begin.

While improving operational efficiency continues to be a priority, legacy systems, evolving regulation and budget constraints are making it harder to fully realise the benefits of digital transformation. As a result, there is increasing recognition that while efficiency may act as a starting point, trust and compliance are critical to sustaining long-term progress.

AI is now firmly established across most organisations, but its use is becoming more embedded and business-critical.

With adoption accelerating, organisations are moving beyond early use cases towards more structured programmes, bringing governance, oversight and legal considerations into day-to-day operations. At the same time, 53 per cent of organisations expect AI regulation and ethical considerations to increase in importance over the next 12–24 months.

With no single dominant use case emerging, AI value is being realised across a broad range of applications, reinforcing the importance of robust frameworks to support its continued growth.

Cybersecurity remains the dominant pressure point from a compliance perspective, with 54 per cent of organisations identifying it as their primary challenge and 60 per cent expecting threats to increase over the next two years. Data protection concerns remain close behind at 47 per cent.

At the same time, organisations are responding, with cybersecurity ranked as the top area for digital infrastructure investment. Together, these findings point to an environment where rising threat levels are accelerating action, and where strong cyber resilience is increasingly recognised as a core component of digital maturity.

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