UK firms are dragging their heels on AI training – shadow AI means they need to move fast to avoid unauthorized use

Only four-in-ten UK businesses have given their staff comprehensive AI training, despite rising investment in the technology.

SAP's Value of AI in the UK: Growth, People & Data Report, launched in partnership with Oxford Economics, found businesses are failing to equip employees with the skills to use AI responsibly.

More than two-thirds (68%) said they believed their staff use unapproved AI tools – so-called shadow AI – at least occasionally as part of their day-to-day work. Katie King, CEO of AI in Business, said while these figures raise concern, there are some silver linings.

“Shadow AI isn’t a sign of resistance, but a sign of enthusiasm. Employees are hungry to use these tools, but this eagerness is seeing some move faster than their organizations can support them. This energy is a huge opportunity for UK businesses, if it’s guided in the right way," she said.

"The answer isn’t to dampen this enthusiasm, and the solution is reasonably simple. Give people access to approved tools, clear guardrails, and role-specific training. When staff understand how to use AI responsibly, it becomes a source of innovation and confidence rather than risk.”

While leaders believe AI can deliver returns faster than other technologies, the report found just 7% of organizations have adopted an enterprise-wide AI strategy.

Similarly, seven-in-ten businesses have begun reskilling or upskilling staff to help close the emerging AI skills gap, yet many harbor concerns that progress is falling behind current rates of adoption.

“AI is fast becoming a key driver of growth for UK businesses. When organizations make the technology part of their long-term strategy, they can innovate faster, scale with confidence and compete globally," said Leila Romane, managing director of SAP UK&I.

"It’s essential to get data foundations right, while giving employees the training, tools and space to experiment safely. That’s how businesses create a culture of responsible AI adoption from day one."

AI spending is surging

According to the report, UK businesses are on average spending £15.94 million on AI this year, with companies expected to increase their investments by an average of 40% in the next two years.

They're also expecting strong returns, with ROI forecast to almost double from 17% in 2025 to 32% in 2027. This ROI increase comes as many businesses begin to unlock significant value from the technology.

Firms reported seeing better insights (36%), stronger customer engagement (34%), and faster time-to-value (31%) with AI over the last year.

However, only 7% of UK businesses are investing in AI based on strategic, holistic prioritization, with most relying on ad-hoc pilots or department-led projects.

SAP warned this is creating a fragmented approach to adoption, which is holding back many businesses.

"Too much of today’s spend is fragmented and ad-hoc. Data readiness is inconsistent, particularly in business functions including finance, legal, and HR. Employees are eager to use AI, but training and governance frameworks have not caught up, creating risks around shadow AI," the report concludes.

"UK organizations are committing serious investment to AI, but without a long-term, robust strategy that brings together data, people, governance, and the wider ecosystem of partners, they risk missing out on the full value of the technology."

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