A growing number of British companies are turning to artificial intelligence as they prepare for a competitive year ahead, with research showing a third of businesses planning AI investments in 2026. The findings reflect a broader emphasis on productivity, skills development, and technology adoption as firms aim to strengthen long-term competitiveness.
Data from Lloyds Bank’s Business Barometer, which surveyed 1,200 firms, highlights that improving productivity is the top priority for businesses entering the new year. Alongside AI adoption, 35 per cent of companies said they intend to invest in staff training, recognising the importance of new skills to make technology investments effective.
Paul Kempster, managing director for commercial banking coverage at Lloyds Business & Commercial Banking, said the results indicate a strategic shift among firms. “These are priorities that will support businesses’ long-term growth,” he said. “They help firms not only capitalise on opportunities in the year ahead, but also build strong foundations well beyond 2026.”
Earlier research from Lloyds underscores why AI is attracting attention. A June study found that 82 per cent of businesses using AI reported higher productivity, while 76 per cent saw improvements in profitability. Retailers recorded the largest gains in productivity, and manufacturers were most likely to report a positive impact on profits.
Despite the growing momentum, barriers to adoption remain. Companies cited the cost of AI tools, shortages of specialist skills, concerns about data privacy, and energy usage as factors slowing uptake. Still, 56 per cent of all firms said they plan new AI investments in the coming year, and a quarter of businesses that have not yet adopted the technology intend to do so.
The barometer also shows a modest rise in business confidence. Overall sentiment climbed five points in December to 47 per cent, marking a ten-point increase over 2025. Optimism about the wider UK economy reached a four-month high, with many firms expecting price pressures to continue easing.
However, caution persists on the consumer side. Early indicators pointed to weaker high-street performance over the Christmas period, with in-store footfall on the final Saturday before Christmas down nearly 7 per cent compared with the previous year.
Taken together, the findings suggest that UK businesses are focusing inward, investing in technology and workforce development to drive efficiency while remaining alert to fragile consumer demand and ongoing economic uncertainty. AI is set to play a central role in this strategy, as firms balance the promise of automation and digital tools with the challenges of implementation and costs.
