UK’s multinational companies are among the leading adopters of AI in Europe, but slower uptake among smaller businesses needs to be addressed for the UK to meet its potential for economic growth with AI, according to a report from Accenture.

The research, which surveyed 800 European companies with annual revenues greater than $1 billion (£740k), found half (49%) of UK firms have scaled at least one strategic initiative. This compares to 43% across Europe.

Larger multinationals – those with $10+ billion revenues – are leading the way, moving beyond one-off projects and embedding AI technologies across key business areas, investing in talent, infrastructure and integration to drive increased value and returns. However, overall, the results reveal that more than half of major British organisations have yet to capitalise on the full potential of AI.

If the technology is implemented responsibly and at scale, Accenture forecasts that the UK could benefit from gen AI more than any other G7 country, adding up to £736 billion to annual UK GDP in 2038.

Despite the potential for gen AI to transform language-based tasks common in UK sectors, like services and telecommunications, the study notes that the US has more large multinationals and higher productivity, leaving the UK at risk of falling further behind the US in the advancement of AI.

Nonetheless, UK business leaders remain optimistic about AI’s economic benefits, with 90% of organisations reporting financial returns from AI investments met or surpassed expectations. Firms also anticipate a 12% increase in revenues and a 15% uplift in productivity over the next 18 months, directly tied to AI adoption.

Jonathan Keane, Strategy and Consulting Lead in the UK, Ireland and Africa at Accenture, said: “The UK has immense potential to boost growth with AI, but progress requires broader and faster adoption beyond multinational firms.

“Without this, an AI gap could lead to a divided economy – which is why coordinated efforts are needed to build AI capability and infrastructure at scale.

“Gen AI has the potential to transform sectors like services and creative industries where the UK is world leading. Embracing AI is crucial for unlocking growth and empowering people at work, particularly as the UK looks to lift itself out of stagnant productivity.”

The uphill climb on productivity

While the UK stands out as one of Europe’s more advanced markets for AI deployment, the region as a whole is falling behind in the global race to address productivity. In fact, the average European worker generates just 76% of the output of their US counterparts, a significant decline from being on par 30 years ago, with slower diffusions and adoption of technology identified as a major cause.

Additionally, AI literacy and workforce development are critical, as many European workers (60%) are concerned about job displacement, and a third (36%) do not feel suitably trained to use AI efficiently.

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To accelerate AI adoption and bridge the transatlantic productivity gap, Accenture outlines five key actions:

• Lead with value, focusing on areas that drive demonstrable and sustained ROI
• Adopt a secure digital core, breaking down business and technical silos to build an end-to-end data foundation
• Focus on talent development, including initial training and ongoing learning
• Make responsible AI pervasive and systematic in the enterprise
• Create a culture of continuous innovation and reinvention

Keane added: “While British companies are some of the best prepared for AI adoption in Europe, the perennial productivity problem leaves them playing catch-up.

“The progress UK businesses have made with AI must be accelerated if they’re to close the gap with other major economies, like the US, and compete on the global stage. Business leaders must ensure implementation of AI is sustained, holistic, and done at scale.”