British bosses bullish on AI, but less than half the workforce confident in UK’s ability to become leading AI economy | Microsoft research

British business leaders are reporting substantial progress in adopting and integrating artificial intelligence, yet employees remain considerably less confident about the country’s longer-term AI future, according to new Microsoft research unveiled at its Frontier Tour in London on Wednesday 21 October.

The study of 5,000 UK employees and 1,000 senior business decision-makers complements Microsoft’s new UK AI Diffusion Report, which tracks the use of AI across  the country. Together, the findings reveal a divide between business leaders and employees’ views on Britain’s AI future, despite growing organisational adoption and tangible benefits from the technology.

Around 90% of business leaders report having a clear AI strategy, while 36% of those in organisations already adopting AI say the technology has driven significant changes to how work is done.

Business leaders are also overwhelmingly optimistic about Britain’s AI prospects. More than 84% are confident the UK can become a world-leading AI economy within five years.

But that confidence is not shared as widely among employees. Just 41% believe Britain can achieve the same ambition. Around 49% expect AI to impact UK society positively over the next five years, compared with 90% of business leaders.

Darren Hardman, CEO, Microsoft UK & Ireland, said: “The UK ranks eighth globally for AI diffusion, second in the G7 and comfortably leads Europe in AI investment. Our thriving technology sector is playing a fundamental role in the economic growth recognised by the International Monetary Fund. Business leaders and employees across the country are embracing AI to change not only what they do and how they get things done, but how quickly.

“We should absolutely aspire to the Government’s ambition for the UK to achieve the fastest AI adoption in the G7. But achieving that ambition is a shared responsibility. Government and industry must work together to respond to British business leaders’ calls for greater action on skills, build trust in the technology, and ensure its benefits reach everyone.

“If we remain divided on whether AI will have a positive impact, if we fail to build trust in the technology, and if we cannot put the necessary safety ecosystem for models in place, then we will not create the society we want. 
 
“The UK has a chance to lead, not just in AI adoption, but in AI safety. Get both right, and we can unlock growth while ensuring the benefits of AI are open to all.”

The research also shows that concerns about job security and opportunities for the next generation remain, despite the positive impact AI is already having on employees’ working lives. Among employees using AI at work, 35% worry the technology has lowered their own job security, while 57% are concerned it will reduce job opportunities for young people and new entrants. This comes despite 71% reporting a positive impact on their work or career, and 69% saying AI has improved the quality of their work.

Despite their differing outlooks, both groups want more government action – 58% of employees and 62% of senior business decision-makers believe government should do more to help Britain benefit from AI.

AI skills and training feature among the top three priorities for both groups, selected by 23% of employees and 35% of business leaders. Employees place the greatest emphasis on stronger AI regulation and safeguards (36%), while business leaders also prioritise greater support for businesses adopting AI (30%).

Building on Britain’s AI progress

Microsoft’s UK AI Diffusion Report data shows usage in the UK has risen significantly from 36.6% in the first half of 2025 to 43.7% in Q2 2026, placing the UK eighth in the world and second in the G7 for generative AI adoption.

But adoption remains uneven across the country, with estimated AI use reaching 57.4% in the West of England Combined Authority, compared with just 34.1% in the Highlands and Islands of Scotland.

Closing these gaps will require helping organisations embed AI more deeply into how they operate, while ensuring the opportunities extend across the economy.

Microsoft is committed to supporting the UK through this next phase and is backing Britain’s ambition with $30 billion (£23 billion) of investment between 2025 and 2028, including $15 billion in cloud and AI infrastructure. It is also helping businesses move towards becoming Frontier Firms, where people and AI agents work together to transform how work gets done, through practical guidance on redesigning workflows and adopting AI at scale.

This activity includes initiatives that have equipped more than 2.5 million people across the UK with digital and AI skills.