UK firms still can't master the basics when it comes to AI adoption

British companies have doubled spending on AI, but they need to also invest in the basics to ensure real results.

That's according to research from ServiceNow, which ranked the UK 51/100 in terms of overall AI maturity despite companies spending 102% more than they did in the year prior.

ServiceNow pinned that on a failure to invest in the foundations needed for AI, including data management and governance processes, and updating legacy systems.

According to a service by the company, 73% of UK executives said they were finding inadequate data accuracy, access, and management a major barrier to rolling out and using AI.

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Just 20% of UK businesses had implemented testing, auditing, and risk assessment for AI, for example. Under one-fifth (17%) of businesses surveyed in the UK had also replaced legacy systems with integrated platforms.

"UK organizations are investing heavily in AI, which tells us the challenge is not ambition," said Damian Stirrett, Group Vice President and General Manager for UK and Ireland at ServiceNow.

"It is connecting that commitment to the operational infrastructure that makes AI work across the enterprise."

The ServiceNow results follow similar research from Cisco earlier this year that found nearly all companies are expanding privacy and governance work in response to AI adoption.

Not ready for AI

While two-thirds of UK companies polled had used agentic AI, just 6% did so to create autonomous workflows, highlighting a lack of maturity in AI roll-outs.

That was echoed by findings showing that 15% of UK organizations have streamlined or integrated workflows using AI, which ServiceNow said showed a gap between AI investment and operational readiness

"Too many businesses are bolting AI onto fragmented systems, disconnected assistants and workflows that have not yet been reimagined," said Stirrett. "The next phase is about moving from isolated pilots to trusted, end-to-end workflows that can deliver at scale."

ServiceNow said improvements will require getting the right data, governance, and workflow foundations in place to scale AI.

You can't spend your way out of trouble

Despite the challenges, UK spending is largely on par with that across EMEA, which saw AI budgets leap by 113% over the last year. By 2027, AI spend will make up 20% of IT budgets, ServiceNow predicted.

However, the company noted that organizations that are succeeding with AI aren't necessarily spending more, pointing to 21% that are seeing strong returns.

Instead, they have the "most mature governance", including data management and risk controls, and that's helping to deliver a 164% return on investment now. The company predicts this could climb to a 199% return on investment within two years.

Governance, the company argued, doesn't slow innovation but is "operating discipline" that enables it, in particular when it comes to scaling quickly and ensuring systems are trusted and auditable.

That echoes comments earlier this year from Tenable co-CEO Stephen Vintz, who said enterprises need to consider the "responsibility gap" with regard to AI governance.

Speaking at RSAC Conference 2026, Vintz pointed to the fact that 90% of organizations had adopted AI and half have already had a related cyber incident.

"There is a fundamental mismatch between the exponential speed of AI adoption and the linear speed of traditional corporate governance, and things will only move faster and things will only become more complex," he said at the time

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