According to a new report from Red Hat, 89% of businesses are yet to realize customer value from their AI initiatives. However, organizations expect their AI investments to increase by 32% by 2026.
The survey found that AI and security are top IT priorities for UK organizations over the next 18 months, with 62% of respondents saying they need them. These are followed by hybrid or multi-cloud strategies and virtualization, providing a clear direction in the technology focus of UK businesses.
However, the path to AI integration is not easy. The majority of organizations face barriers to adoption, with high implementation and maintenance costs being a top concern for 34% of respondents. Data privacy and security issues are a close second, bothering 30%, and 28% struggle to integrate AI into existing systems.
A particularly interesting finding is the prevalence of “shadow AI,” with 83% of organizations reporting misuse of AI tools by employees. This suggests a disconnect between official IT strategy and employees’ daily work, which can lead to security risks and inefficiencies.
To overcome these challenges, UK organizations are increasingly turning to open source software. The survey found that 84% of respondents believe enterprise open source is important to their AI strategy, with similarly high numbers for virtualization, hybrid and multicloud, and security.
Joanna Hodgson, UK Country Manager at Red Hat, said: “This year’s UK survey results demonstrate the gap between ambition and reality. Organizations are investing heavily in AI, but few are currently delivering customer value. In the transition from experimentation to sustainable production, enterprise knowledge and integration with enterprise systems must pave the way to realizing value from AI.”
“Openness is a driver for greater collaboration, sharing best practices, and enabling flexibility. Just as with successful hybrid cloud investments, open source will continue to be the foundation for making AI more usable and reusable.”
The study also looked at specific areas of AI that are being prioritized. Agent AI, including systems that can operate with a high degree of autonomy, is a top priority for 68% of respondents. This is followed by a desire to enable broader workforce adoption and operationalization of AI.
The skills gap remains a persistent challenge, and AI is the most pressing concern for the second year in a row. In the field of AI, the talent shortages are most acute in agent AI, the ability to effectively use AI capabilities, and the ability to educate the broader enterprise on how to use AI.
Despite these domestic challenges, there is strong optimism about the UK’s place on the global AI stage. 83% of respondents believe the UK is either already a global AI powerhouse or has the potential to become a global AI powerhouse within the next three years. However, this confidence is undermined by a lack of talent pipeline, lack of public funding and lack of private sector involvement, which are seen as key factors preventing the UK from extracting value from AI.
The report also addresses the complexity of cloud adoption, which is further complicated by the integration of AI workloads. Internal silos, sovereignty concerns, and uncertain returns on investment remain barriers. In response, UK organizations are prioritizing operational control and autonomy, securing their software supply chains and maintaining flexibility in their choice of IT suppliers.
Hans Roth, SVP and GM of EMEA at Red Hat, commented, “Organizations want better operational control and IT resiliency to adapt to a world of continued disruption. The survey results and our daily conversations show that sovereignty figures prominently in enterprises’ ongoing cloud strategies and emerging AI opportunity agendas.”
“Open source is central to this change because it provides companies with the transparency and flexibility to innovate quickly without compromise.”
Red Hat’s latest research shows that while the UK is ready to harness the potential value of AI, it also struggles with the practicalities of implementation, skills shortages and the complexity of the technology environment. A strong focus on open source suggests a pragmatic approach that supports collaboration and flexibility in pursuing AI-driven innovation.
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