Lloyds Bank warning for workers at 'almost a third' of UK companies

AI's Impact on UK Jobs and Skills

A new survey from the Lloyds Business Barometer indicates that artificial intelligence is reshaping the UK workforce, with more than half of businesses reporting that AI has created new jobs. According to the data, 54% of UK businesses say AI has generated new roles within their organizations, while 58% plan to increase investment in AI tools and skills training over the next twelve months.

Of the businesses planning to raise AI investment, 42% expect to spend between £25,000 and £100,000 in the coming year, and a further 26% anticipate spending between £100,000 and £250,000. This spending push comes despite a significant skills gap: 31% of businesses admit their current workforce lacks the AI skills the company needs.

Amanda Murphy, CEO of Lloyds Business and Commercial Banking, said, "AI has the potential to be as transformative for businesses as the internet was." She added that success depends on building skills, culture, and confidence, rather than simply purchasing new technology.

Adoption Varies by Company Size and Reach

The survey found that 61% of UK firms currently use AI in some form, but adoption varies sharply. Larger businesses with annual turnover above £10 million report AI usage averaging 79%, compared to 46% of domestically focused businesses and 63% of firms operating internationally. Nearly two-thirds of larger firms say their current workforce has the AI skills needed to meet business needs.

Among larger firms, 77% plan to increase AI investment, with 74% citing productivity gains as the main driver. Larger firms are also more likely to view non-adoption as a competitive disadvantage: 73% agree, compared to 54% of firms with turnover below £1 million. International firms are also more likely than domestic-only firms to see non-adoption as a disadvantage, at 61% versus 46%.

Investment in AI Skills Training

To address the skills gap, many firms are taking action. According to the survey, 43% of UK firms are introducing formal AI skills training, and 32% are expanding existing programs. Additionally, 24% say they prioritize AI skills when hiring, and 21% are creating new AI-specific roles.

Nearly six in ten businesses believe that companies that fail to adopt AI risk falling behind competitors. This urgency is reflected in the investment plans, with firms showing a clear appetite for deeper AI skills funding across sectors.

Barriers to AI Adoption

Despite the push, several barriers remain. Cost is cited by 18% of businesses as the most common obstacle, followed by data quality and skills access at 17% each. Domestic-only firms cite cost as their biggest barrier at 23%, while international firms point more often to data quality at 19%.

The findings highlight a widening gap between large and small firms, with larger businesses far ahead in both adoption and skills readiness. As the race for AI skills gets underway, the survey suggests that investment in training and hiring will be crucial for businesses to remain competitive.