Artificial intelligence is already a working part of many UK businesses, according to a Government-commissioned survey of 801 employers published on 28th January 2026. It found that 31% of employers were using AI, with a further 9% planning to start. Leading sectors went further still, with more than half of businesses using the technology.

The research was led by Ipsos together with The Alan Turing Institute, the University of Warwick and Perspective Economics. It is one of 11 reports from the AI Skills for Life and Work project and gives a clear picture of skills across the workforce. Eleven per cent of employers said staff had received AI training in the previous 12 months, while 21% expected demand for AI skills to grow over the following year..

Digital sectors lead the way

Businesses that work closely with data and digital services are moving fastest. Information and communications led with 55% of employers using AI, followed by other business services at 49% and professional, scientific and technical firms at 43%. Their progress offers a helpful guide for other industries.

Knowledge levels are highest in these areas too, and among all employers using or planning to use AI, 43% rated their organisation’s understanding as intermediate or higher. This rose to 70% in information and communications. Finance and insurance recorded 24%, although the report notes that some sector samples were small.

Most businesses are in the early stages, which leaves plenty of room to grow. Of employers using AI, 87% said it was partly built into the business, 12% said it was fully built into some areas and 1% said it was fully built in across the whole business. Two thirds were using freely available tools, which keeps the cost of getting started low.

IT and marketing take the lead

IT is where AI is used most, cited by 39% of employers using or planning to use the technology. Marketing and sales follow at 32%, while strategy and corporate finance and human resources each stand at 7%. On average, these employers used or planned to use AI in 1.39 business functions, so there is plenty of scope to extend it into new areas.

Real-time conversational tools were the most popular product at 39%, and 23% of employers used AI to cut down repetitive tasks. Sales and business forecasting stood at 7%. Businesses with stronger AI knowledge used a wider mix of tools, with 76% using freely available products and 21% building their own, compared with 46% and 3% among businesses at beginner level.

Four levels of AI skill

The survey groups AI skills into clear levels. Across all employers, 28% had staff using existing AI tools, 5% had staff who could apply AI models to business tasks and 5% had staff who could build models. The remaining 61% had no staff working with AI yet, which means a large number of businesses have a simple and clear first step ahead of them.

This structure makes workforce planning easier. Everyday tool use, applying models to business tasks and building new models each need different levels of knowledge and support, so businesses can set goals that suit their size and sector. For most, confident use of existing tools is a practical place to begin.

Employers with AI-using staff already rate them well on safe and responsible use. Some 61% said staff were good at keeping information safe and private, 60% said staff communicated well with AI systems and 59% said staff understood the risks involved.

Training demand is rising

Training is one of the biggest opportunities in the report. While 11% of employers had arranged AI training in the previous 12 months, this rose to 48% among businesses with more technical AI staff. At the same time, 21% of employers expected their need for AI skills to grow over the next year.

Interest in future training is strong, with 36% of employers saying they would like AI training, rising to 58% in information and communications. Among interested employers, 87% wanted training on keeping information safe and private. A further 86% wanted to learn how AI can reduce repetitive tasks and save time.

Half of all employers said their first need was clarity on which training would suit their business, while time and cost were mentioned by 47% and 41% respectively. Training linked to specific roles in IT, marketing, finance and HR helps answer the first of these directly.

Productivity drives future plans

Employers expect AI to play a bigger role in the years ahead. Among businesses using or planning to use the technology, 45% expected their business model to use or rely on AI within three to five years. This rose to 68% in other business services and 67% in information and communications.

Leadership teams are focused on the benefits, and among businesses expecting to use or rely on AI, 58% saw it as an opportunity to boost productivity. A further 53% saw a chance to grow sales and win new customers. Employers also rated their leaders’ understanding of overall staffing needs as good in 79% of cases, giving a strong base for planning AI skills.

The survey ran from 19th March to 7th June 2024 and covered 801 employers, interviewed by phone and online. Sole traders and the public sector were not included. With AI moving quickly, the figures work best as a starting point for measuring progress.

The report does not measure the financial return from individual uses of AI, which gives businesses the chance to build their own evidence. A clear goal, a named owner, reliable data and an agreed way of measuring results give each AI project a strong start. With clear guidance on where people should review the work, businesses can grow their use of AI and the skills of their teams side by side.