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Home»Business»Functional technology is squeezing profits for UK companies, but AI could help
Business

Functional technology is squeezing profits for UK companies, but AI could help

versatileaiBy versatileaiNovember 14, 2025No Comments3 Mins Read
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The Impact of Digital Friction report found that almost half (46%) of UK businesses say that ‘digital friction’ – everyday technology frustrations that slow down work – is directly leading to lost revenue. Even more people (55%) have experienced major project delays due to IT issues.

The study surveyed more than 4,200 professionals around the world, including 400 in the UK. Troublingly, it also found that UK employees fear that technological challenges will get worse, not better. A third (30%) expect the amount of time lost to digital friction to increase in the next year.

How the UK compares to the world

Compared to other major markets, the UK is slightly above the global average for digital friction, but is well behind leaders such as the US and India. 46% of UK businesses report revenue losses due to IT inefficiencies, compared to a global average of 42%, with the figure rising to 50% in the US and 65% in India. In contrast, only a third (33%) of German companies report a similar impact, highlighting the stark differences in how organizations manage their digital infrastructure across regions.

Human costs of digital friction

Beyond the economic impact, digital frictions are taking a toll on the UK workforce. Almost half (47%) of UK respondents believe that frustration with technology contributes to employee turnover, and almost a third (31%) have had a colleague leave their job due to ongoing IT issues.

This frustration is changing the way people think about work. 45% say they ask about a company’s digital employee experience before accepting a job, and 27% admit they have considered leaving due to ongoing IT challenges.

These findings make it clear that digital friction is not just a technical issue, but a cultural and people challenge that impacts motivation, satisfaction, and talent retention.

The role of AI in solving dysfunction

Encouragingly, this study reveals a clear path forward. Almost half (48%) of UK respondents believe that AI can help reduce digital friction within their organization. Meanwhile, half (52%) are open to AI taking over routine IT tasks like troubleshooting and password resets.

These insights suggest a growing readiness among UK businesses to embrace AI as a means of empowering productivity and efficiency, enabling teams to work smarter and faster while reducing day-to-day hurdles.

“Technology should empower people, not hinder them,” said Andrew Hewitt, VP of Strategic Technology at TeamViewer. “With productivity now such a huge focus for UK businesses, there is a real opportunity to turn everyday technology frustrations into progress. Our findings show that reducing digital friction can have a huge impact on both performance and morale. As organizations embrace AI-powered connectivity and smarter IT systems, they can remove barriers, give people back valuable time and create a smoother and more rewarding work experience.”

For more startup news, check out other articles on our website and subscribe to our magazine for free. For interviews with entrepreneurs and big names in the startup ecosystem, listen to The Cereal Entrepreneur podcast.

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