ONS data shows UK businesses are not deepening their AI use

In short: More UK businesses are using AI, but most are not using it in a deep or wide way, according to new ONS data.

What's going on

The UK Office for National Statistics (ONS) says AI use is spreading across businesses, but most companies are still only using a small amount of it. About 35% of UK businesses with more than 10 employees now report using AI, up from 12% in September 2023. Among large companies, the figure is higher at 48%.

Even so, the average number of AI tools used per business has only risen a little, from 1.4 in 2023 to 1.6. Only around 1 in 10 businesses using AI say they use it “extensively”. Only 15% say more than half of their employees use AI in daily work.

The most common type of AI used is large language models, which are text tools that can write and answer questions (like a very fast autocomplete). The next most common use is creating visual content.

The data also suggests many businesses treat AI mainly as a way to save time and money, not to create new products. About 60% said they use AI to improve operational efficiency, while fewer than 1 in 5 said they use it to develop new products or services. In most sectors, free AI tools are the most common, with paid or in-house tools more common in tech, professional services, and construction.

What to watch

The ONS says there is limited evidence so far that AI is changing total employment levels. Still, some roles appear more affected than others, especially creative and design work tied to image creation, and some clerical and admin work tied to image processing. A key question is whether businesses start using AI for growth, not just cost cutting.

Source: Financial Times