UK firms ramp up spending on blockchain and AI tech

UK business investment in new technologies such as quantum computing, blockchain and artificial intelligence is set to jump in the next five years, according to research by the CBI and Accenture.

The proportion of firms seeking to invest in quantum computing will increase from 11% today to 32% in five years. The number of those starting to put money into blockchain and other distributed ledger technologies will double from 16% today to 35%. Whilst a third of respondents are also due to begin spending on AI.

“These technologies will be used not only to improve customer experience and reduce costs, but open up new frontiers of innovation, from drug discoveries to drone deliveries. As we move from research to reality, investment in quantum computing is set to leap threefold, and could make possible experiments that are currently too costly and impractical,” says Felicity Burch, CBI Director of Digital and Innovation.

“Ensuring data is secure, and that the teams developing it reflect modern society is firmly on the public radar, and it’s encouraging to see firms prioritising this. But with most firms surveyed planning to use AI in the next few years, businesses must do more to address unfair bias in data - this is one area where businesses will need to step up.

While the UK’s regulatory framework is a strength, ongoing political uncertainty risks stifling innovation and undermining business investment in technology, jeopardising investments that could be worth billions of pounds, Burch warns. If firms are to continue developing the technology behind quantum computing, robotics and AI in the UK - ending political instability will go a long way to unlocking investment.

However, greater investment doesn’t always equate to greater success. Tech adoption for tech’s sake often yields limited results or value, argues Zahra Bahrololoumi, Senior Managing Director and Lead at Accenture Technology UK & Ireland. “To make the most of their investment, businesses need to leverage technology, talent and be aligned with business objectives and outcomes. By adopting this approach, they can build an agile system to support the new tech that it needs to thrive not just now but also in the future,” he comments.

When considering return on investment for technology investments, businesses are prioritising customer-focused innovation, measuring customer insight and engagement (47%) and reduced cost (40%). Firms are increasingly seeing the importance of good cyber security practices, with nearly all respondents saying they are prepared for system failures (91%) or phishing attacks (89%). But fewer businesses (74%) report feeling confident when it comes to managing reputational risk.