A study from Accenture has argued that the UK’s multinational companies are among the leading adopters of AI in Europe, claiming almost half have scaled at least one strategic initiative. However, the US still outpaces the UK by some distance – something which the researchers believe could extend the productivity gap between the two economies.
UK-based multinationals are among the leading adopters of AI in Europe, according to a new study from Accenture. The researchers surveyed 800 European companies with annual revenues greater than £740 million, and found that while 43% of firms had scaled at least one strategic initiative across the continent, that rose to 49% in the UK.
Larger multinationals with over £7.4 billion in revenues are leading the way. Despite various other studies suggesting that delivering AI change has been slow for many companies, Accenture believes these firms are 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 still reveal that more than half of major British organisations have yet to capitalise on the potential of AI. Were they to do so, and implement AI 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.
Growing gap
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.”
Illustrating the importance of this further, Accenture pointed to goings on across the Atlantic. According to the firm, the US has more large multinationals and higher productivity, along with a better uptake of AI in business transformations. This could, they contend, mean that the US continues to pill away from the UK and Europe in terms of its economic output. The researchers argue that 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.
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.”