A third of UK companies plan to invest in artificial intelligence in 2026 as companies sharpen their focus on productivity, skills and technology in an increasingly competitive market.
Research from Lloyds Bank shows that AI is becoming a central pillar of growth strategies as companies look to automate processes, improve efficiency and strengthen long-term competitiveness.
The Lloyds Business Barometer, based on a survey of 1,200 companies, found that productivity improvements are a top priority for businesses next year. In addition to AI investments, 35 percent of companies said they plan to invest in team training in 2026, recognizing that new technologies require new skills to deliver real value.
Paul Kempster, managing director of commercial banking coverage at Lloyds Business & Commercial Banking, said the results underline a shift towards more strategic, forward-looking investments.
“These are priorities that will support the long-term growth of companies,” he said. “They not only help companies take advantage of the opportunities in the coming year, but also create strong foundations well beyond 2026.”
Previous research from Lloyds highlights why AI is attracting growing attention. In a study published in June, 82 percent of companies using AI said they increased productivity, while 76 percent reported an improvement in profitability. Retailers saw the strongest productivity gains, while manufacturers were most likely to see a positive impact on profits.
Despite the momentum, obstacles remain. Companies cited the cost of AI tools, lack of expertise, privacy concerns and energy consumption as factors slowing adoption. Still, 56 percent of companies said they plan to make new AI investments in the next year, while a quarter of those that have not yet adopted the technology said they plan to do so.
The barometer also indicates a slight improvement in mood. Overall business confidence rose five points to 47 percent in December, a rise of 10 points over 2025. Optimism about the broader British economy rose to a four-month high, with many companies expecting price pressures to ease further.
However, caution continues to prevail on the consumer side. Early indicators point to weaker performance in brick-and-mortar retail ahead of Christmas, with footfall in stores on the final Saturday before Christmas down almost 7 per cent year-on-year.
Taken together, the data paints a picture of companies looking inward, investing in technology and people to increase efficiency while remaining vigilant in the face of weak consumer demand and ongoing economic uncertainty.
