The new projected timeline would see the UK gain the status two years earlier than the initial target of 2030. This is due to a surge in the adoption of advanced digital technologies, particularly artificial intelligence (AI).

This is according to research commissioned by Amazon Web Services (AWS), which pointed out that the UK saw the number of companies adopting AI increase by nearly one third (31%) between 2022 and 2023. 

The accelerated adoption of AI has the potential to contribute an additional £107 billion to the UK economy, surpassing previous projections, according to the study. In total, AI is projected to boost the UK’s economy by a GVA (Gross Value Added) of £520 billion by 2030. 

According to the AWS report, this GVA is equivalent to almost double the total contribution of travel and tourism to the UK’s GDP in 2022. 

According to the report, 39% of businesses have integrated AI technology into their daily operations on a consistent basis. Among these businesses utilising AI, 70% indicated their use of large language models (LLMs) or generative AI.

The applications of AI span a diverse spectrum: 62% of businesses utilise AI for interpreting or generating human language, 46% employ it for fraud detection or anomaly identification, and another 46% utilise it for making data-driven predictions, decisions, or forecasts.

Furthermore, the report highlighted notable benefits observed by UK businesses that have embraced AI, 86% reported enhanced automation and efficiency, 79% experienced cost savings, and 64% witnessed increased revenues as a result of AI implementation.

However, the report points out that concerted efforts to address regional disparities and bridge the digital skills gap will be essential in realising the nation’s digital ambitions.

While the report points out that the UK’s AI adoption rates are encouraging, it also highlights disparities across regions. Currently, 75% of AI adoption is concentrated in London, the South East, the North East, and the North West. 

“Closing these divides presents an opportunity for the UK to boost the economic potential of advanced digital technologies further,” the report said. 

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According to the report, if the regions with the lowest digital adoption, Wales and the South West of England, were to reach the UK average adoption rate (39%), it would generate a projected £2.4bn for the UK economy per annum. 

However, one of the primary obstacles hindering the adoption of new technologies is the shortage of skilled personnel. According to estimates by the UK government, the digital skills gap exacts a hefty toll on the economy, amounting to £63 billion in lost potential GDP annually.

AWS’s research revealed that businesses are encountering difficulties in recruiting individuals with proficient digital skills, and merely 13% indicated ease in finding staff with such capabilities, while 29% cited a lack of digital skills as a barrier to their integration of AI tools. 

On average, firms estimate that it takes more than seven months from posting a job vacancy to securing an employee equipped with the necessary digital proficiencies.