A new report from Advanced, a business software firm, revealed that nine in ten UK business leaders are actively exploring ways to incorporate new technology into their organisations. The survey compiled insights from more than 6,600 senior executives across a broad range of business sectors. 

According to the report, some long standing objectives such as Environmental, Social, and Governance (ESG) and Diversity and Inclusion (D&I) have been deprioritised by business leaders, and outpaced by new priorities. 

“Businesses are facing acute external pressures that are compelling them to make tough decisions about where their priorities lie in the struggle for survival,” Simon Walsh, CEO of Advanced.

While around half of businesses still consider ESG and DE&I priorities, it is a stark drop in comparison to last year’s survey, where three quarters of respondents named these priorities as growing priorities. 

In terms of ESG the report does show that maintaining compliance with legislation was a top motivator for almost two thirds (62%) of businesses, while around half (53%) stated that their ESG initiatives were driven by reputation, and even less (47%) sought to make a positive impact on their communities.

In Scotland, the report found that 9% of businesses were deprioritizing ESG, which was higher than London at 6%, but lower than the average in England (11.2%) and Northern Ireland (15%).

This shift comes on the heels of business grappling with challenges stemming from economic uncertainty, political turmoil abroad, and the emergence of AI. In light of this, businesses are more concentrated on retaining and attracting talent, cybersecurity and data protection, managing cash flow, and controlling the cost of business. 

Recommended reading

• Using AI to Assess ESG Impact
• What do UK CEOs say are the Most Common Challenges They Face?
• Guidance on Competition Law in ESG Agreements Released by CMA

“British businesses are facing very real and pressing issues and are having to adapt and evolve at a rapid pace due to the high-pressure economic environment and the swift advancement of new technologies like adaptive AI,” said Walsh. 

“Against a turbulent economic and political backdrop, business leaders are being forced to focus their efforts on future-proofing their operations with technical investments, alongside practical issues like talent retention and cash flow, at the expense of initiatives like ESG and DE&I.”