AI spending is reaching dizzying heights, with UK firms spending an average of £15.9 million on the technology this year alone, according to new research from SAP. 

The software firm’s latest study, The Value of AI in the UK: Growth, People & Data, reveals that despite already shelling out tens of millions on untried tech, businesses expect to ramp up their AI investments by 40% over the next two years.

However, according to the data, this could already be paying off. Among the benefits AI is already reportedly bringing, UK companies say they are seeing better insights (36%), stronger customer engagement (34%), and faster time-to-value (31%), with 52% of execs saying AI delivers returns faster than any other technology. 

All told, SAP found that the average UK business is already realising some fairly significant returns of 17% (£2.7m) from their AI investments, with that ROI forecast to almost double to 32% (£7.5m) by 2027.

It’s a similar story when it comes to the returns forecast from agentic AI, with the average UK company expecting an ROI of 11% from its intelligent agents within two years, equivalent to £2.7 million, and 55% saying agentic AI will significantly influence their decision making in the near future.

While more than three-quarters (78%) of UK executives believe AI will achieve a positive return within one to three years, the study highlights the fragmented nature of most AI programmes. Almost half (42%) of firms describe their investments as ‘piecemeal’, 37% as department-led, and 15% as ad-hoc.

The data shows that just 7% are pursuing reinforcing their AI investments with enterprise-wide plans, with 70% of businesses unsure whether the technology is delivering its full potential.

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SAP warned that, unless investment in AI is matched by a clear strategy, strong data foundations and the right skills, there is a risk that the UK will lose its competitive edge, already being far behind both China (£31.59m) and the US (£27.46m) in average AI spend per business.

“Too often, AI adoption looks more like filling a shopping basket with tools, rather than building a strategy,” said Katie King, CEO of AI in Business. 

“Moving fast is important, but it must be strategic. The companies seeing real value are the ones that are linking data, applications, and intelligence into one system. The businesses doing this are already turning AI from a cost line into a genuine source of competitive advantage.”