Key findings
- 68% of UK organisations with 50+ employees use AI in some form. 32% do not.
- In 25%, the only use is individual employees using it informally.
- 26% have deployed AI in at least one core process. 2% have agents running with limited oversight.
- AI and automation is the most-named investment priority (22%), twice the share prioritising cyber security and resilience (11%).
How many UK businesses are using AI?
Most of them. We asked 500 senior decision-makers which statement best describes AI use in their organisation. A third (32%) say they are not using it.
Among the rest, the largest single group (25%) says individual employees use AI informally. A further 16% are piloting it in specific functions, 15% have deployed it in one or two core processes and 9% across multiple core functions. In 2%, AI agents are running with limited oversight.
A quarter of UK businesses use AI only informally
Which best describes your organisation’s use of AI?
View data
| Answer | % |
|---|---|
| Not using AI | 32% |
| Individual employees use it informally | 25% |
| Piloting in specific functions | 16% |
| Deployed in one or two core processes | 15% |
| Deployed across multiple core functions | 9% |
| Agents running with limited oversight | 2% |
What is shadow AI, and how common is it?
Shadow AI is AI used by staff without a decision, policy or oversight from the organisation. In our data, a quarter of organisations (25%) describe exactly that: employees using AI informally and nothing more formal in place.
We did not ask whether a policy exists, so this is not a measure of rule-breaking. It is a measure of how many organisations have AI in the building without having chosen it.
What are UK businesses investing in?
AI first. Asked for their top investment priorities (up to two), 22% name AI and automation, ahead of technology and IT (20%), sales and marketing (19%) and product or service development (17%).
Cyber security and resilience is named by 11%. For every business prioritising resilience, two are prioritising AI.
AI is the top investment priority, at twice the rate of cyber resilience
What are your organisation’s main investment priorities? (Up to two)
View data
| Answer | % |
|---|---|
| AI and automation | 22% |
| Technology and IT | 20% |
| Sales and marketing | 19% |
| Product or service development | 17% |
| Pay and retention | 16% |
| Equipment and machinery | 12% |
| Training and skills | 11% |
| Cyber security and resilience | 11% |
| No significant investment | 10% |
Does AI make businesses feel more exposed?
It appears to. 59% of leaders say their organisation feels more vulnerable than three years ago. Among those with AI embedded, it is 71%. And just 9% of those investing in AI are also investing in resilience.
Feel more vulnerable than three years ago
What this means
AI is the biggest bet UK businesses are making and the least governed. A quarter have it through the side door. The ones furthest along feel the most exposed. Almost none are funding resilience alongside it.
For leadership teams, the first step costs nothing. Find out which of the six rungs you are on, and whether you chose it. If you sell AI products or services, note where your buyers are: most are below "deployed", and they trust AI recommendations less than you might hope.
Frequently asked questions
How many UK businesses use AI?
68% of UK organisations with 50 or more employees use AI in some form, according to The Reality Department's Business Reality Index. 26% have deployed it in at least one core process.
How common is shadow AI?
In 25% of UK organisations, the only AI use is individual employees using it informally.
What is the top investment priority for UK businesses?
AI and automation, named by 22% of business leaders. Cyber security and resilience is named by 11%.
Methodology
The Reality Department surveyed 500 senior decision-makers at UK organisations employing 50 or more people for wave one of the Business Reality Index. Quotas were set by business size, sector and region. Fieldwork: August 2026.
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