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UK businesses adopting AI see strong gains in profitability and productivity

Lloyds
Published on: 12 March 2026
4 min read
 
  • Half of firms that saw a profit boost from AI recorded an 11% uplift.
  • Two thirds of businesses have invested in AI, most spent less than £25,000.
  • Companies in London and West Midlands lead the UK on AI usage and investment.

New findings from the Lloyds Business Barometer show that AI is helping firms work more efficiently and unlock new opportunities for growth. UK businesses integrating AI into their operations are reporting significant financial benefits, with almost nine in ten (87%) seeing increased productivity and almost half (48%) reporting higher profits over the past 12 months.

Positive Impact on profits

Of those who reported a profit boost from using AI (48%), almost half (48%) recorded an uplift of 11% or more with 38% saying profits increased by 6-10%, and 13% with profits increasing between 0-5%.

The findings come as investment in AI accelerates, with two thirds (66%) of UK businesses confirming they have invested in AI. The research from Lloyds found that most firms spent less than £25,000 (33%) to enhance their AI capabilities, followed by 18% of firms who spent between £25,000-100,000, 8% spending between £100,000-250,000 and 7% spending £250,000 or more.

Businesses recognise AI as a powerful driver of growth, with gains that are delivering a competitive edge. As companies increase their investment and adopt this new technology more widely, they will need clear oversight and robust processes to ensure these tools are used responsibly and transparently. It’s clear that companies are seeing AI as a strategic advantage that is key to fulfilling their long-term ambitions.

Amanda Murphy CEO for Lloyds Business & Commercial Banking

Sector Insights

AI usage is particularly strong in the Services sector (70%), followed by Retail (60%), Construction (59%) and Manufacturing (55%). AI investment, however, is led by firms in the Retail sector (70%), followed by Services (68%), Construction (60%) and Manufacturing.

Regional Insights

London and West Midlands stood out as the regions with the most businesses using AI as well as seeing the highest proportion of firms investing in AI.

Using AI

Region/Nation

Using AI

Region/Nation

West Midlands

Using AI

83%

Region/Nation

London

Using AI

78%

Region/Nation

North East

Using AI

72%

Region/Nation

Northern Ireland

Using AI

72%

Region/Nation

North West

Using AI

68%

Region/Nation

South West

Using AI

66%

Region/Nation

East of England

Using AI

64%

Region/Nation

Yorkshire & Humber

Using AI

61%

Region/Nation

East Midlands

Using AI

52%

Region/Nation

South East

Using AI

50%

Region/Nation

Wales

Using AI

48%

Region/Nation

Scotland

Using AI

46%
Using AI

Region/Nation

Using AI

Region/Nation

London

Using AI

83%

Region/Nation

West Midlands

Using AI

78%

Region/Nation

North West

Using AI

75%

Region/Nation

North East

Using AI

69%

Region/Nation

East Midlands

Using AI

67%

Region/Nation

Northern Ireland

Using AI

67%

Region/Nation

East of England

Using AI

62%

Region/Nation

Yorkshire & Humber

Using AI

61%

Region/Nation

South West

Using AI

58%

Region/Nation

South East

Using AI

51%

Region/Nation

Wales

Using AI

48%

Region/Nation

Scotland

Using AI

46%

Investment in Skills and Capability

Alongside these gains, businesses are investing in the skills needed to make AI adoption effective. The survey shows that Customer Service roles have been upskilled the most by AI (43%), followed by Sales teams (29%).

 

Artificial Intelligence at Lloyds Banking Group

We’re reimagining how we operate by harnessing the full potential of AI – embedding it across our business to drive smarter decisions, faster outcomes and better experiences.

AI at Lloyds


AI in Action

Lloyds is also seeing the benefits of its investment in AI. For example, earlier this year, Lloyds developed a Generative AI tool, ‘CRE AI’, which processes complex real estate tenancy schedules in minutes, rather than the 75 hours previously required. While it doesn’t make decisions, the tool streamlines preparation so teams can focus on judgement-based work and supporting clients.

Lloyds Banking Group this year launched the AI Academy, a programme designed to provide practical AI skills for all colleagues, no matter their role or level. The aim is to equip colleagues with the skills and knowledge to implement AI solutions in their day-to-day work, boosting efficiency and allowing colleagues to focus their time on high-value tasks. By putting new capabilities into practice, it creates opportunities to provide customers with enhanced and innovative new services, and open potential new revenue streams for the business.
 

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