Lloyds Research Identifies Skills, Cost and Data Quality as Key AI Adoption Barriers

Lloyds Research Identifies Skills, Cost and Data Quality as Key AI Adoption Barriers

(IN BRIEF) Lloyds research from the Lloyds Business Barometer finds that 54 percent of UK businesses say AI has created new jobs within their organisations, while 58 percent plan to invest in AI skills over the next year as adoption becomes increasingly tied to productivity, growth and competitiveness. Overall, 61 percent of firms currently use AI, with adoption higher among international businesses and larger companies, while nearly six in ten firms believe businesses that fail to adopt AI will be at a competitive disadvantage. The research also highlights a skills gap, with 31 percent of businesses saying their workforce does not yet have the AI skills needed, prompting firms to introduce training, expand existing programmes, focus on AI skills in hiring and create AI-specific roles. Lloyds said the biggest barriers to getting more value from AI are cost, data quality and access to skills, while the bank is also scaling its own AI capability through more than 1,000 AI-related roles planned in 2026, almost 300 agentic AI-related roles, AI Engineering apprenticeships and widespread internal AI training.

(PRESS RELEASE) LONDON, 119-Aug-2026 — /EuropaWire/ — Lloyds research from the Lloyds Business Barometer has found that more than half of UK businesses say artificial intelligence has created new jobs within their organisations.

The findings show that 54 percent of businesses report that AI has led to job creation in their firms, while 58 percent plan to invest in AI-related skills over the coming year.

The research also found that nearly six in ten businesses believe companies risk falling behind competitors if they fail to adopt AI.

At the same time, firms identified cost, data quality and access to skills as the main barriers preventing them from generating more value from the technology.

Businesses increase investment in AI skills

Lloyds found that businesses are preparing to increase investment in workforce upskilling as AI becomes more central to operations, productivity and growth.

Among companies planning to increase investment in AI skills, 42 percent expect to spend between £25,000 and £100,000, while 26 percent expect to spend between £100,000 and £250,000.

While 54 percent of businesses said their workforce currently has the AI skills needed, 31 percent said it does not.

The responses suggest that many firms see skills development as a priority.

According to the research, 43 percent of businesses are looking to introduce AI skills training, 32 percent are expanding existing training, 24 percent are placing greater emphasis on AI skills when hiring, and 21 percent are creating new AI-specific roles.

AI adoption varies by business profile and size

Overall, 61 percent of firms said they currently use AI.

Adoption levels vary between businesses operating domestically and those active internationally.

The research found that 46 percent of domestically focused businesses use AI, compared with 63 percent of firms operating internationally.

Larger firms are also more likely to use AI.

An average of 79 percent of businesses with turnover above £10 million said they currently use the technology.

Nearly two-thirds of larger firms said their current workforce has the AI skills needed to meet business requirements, while 77 percent said they plan to increase investment in AI.

Among larger firms, the main driver for AI investment is productivity, cited by 74 percent of respondents.

AI seen as increasingly important to competitiveness

Nearly six in ten firms said businesses that fail to adopt AI will be at a competitive disadvantage.

International firms were more likely than domestic-only firms to agree with this view, at 61 percent compared with 46 percent.

The findings suggest that AI is increasingly being seen as a competitive necessity rather than an optional technology investment.

Larger businesses were also more likely to view AI as essential to future success.

Almost three-quarters, or 73 percent, of firms with turnover of £10 million or more said businesses that fail to adopt AI will be at a competitive disadvantage.

This compares with 54 percent of businesses with turnover below £1 million.

Barriers to getting more value from AI

The research also identified barriers that may slow wider AI adoption.

Businesses cited costs, at 18 percent, data quality, at 17 percent, and access to skills, also at 17 percent, as the main challenges preventing them from getting better value from AI.

Domestic-only firms were more likely to identify cost as a barrier, at 23 percent.

International firms were more likely to point to data quality, at 19 percent.

Amanda Murphy, CEO of Lloyds Business and Commercial Banking, said AI has the potential to transform businesses in a way comparable to the internet a generation ago.

She said firms seeing the greatest benefits are treating AI not only as a technology investment, but as a catalyst for broader organisational transformation.

Murphy said success will depend on more than access to technology, requiring businesses to build the skills, culture and confidence needed to use AI effectively.

She added that companies able to combine human ingenuity with AI will create meaningful advantages in productivity, innovation and growth.

As adoption accelerates, Murphy said one of the main challenges for organisations will be ensuring they have the capabilities to adapt alongside the technology.

She said supporting businesses through this transition will be critical if the UK is to fully capture the economic opportunity presented by AI.

Lloyds expands AI roles, tools and training

Lloyds is also scaling its own AI capability.

In June, the Group announced plans for more than 1,000 AI-related roles in 2026.

These include almost 300 agentic AI-related roles and one of the first Level 6 AI Engineering apprenticeships launched by a UK bank.

Since January, more than 400,000 AI Academy courses have been taken across Lloyds.

More than 65,000 colleagues have also completed training on working responsibly with AI.

The findings underline the growing importance of AI skills, workforce development and organisational readiness as UK businesses seek to use the technology to improve productivity, competitiveness and long-term growth.

Ends

Notes to Editors

• The Business Barometer results provide early signals about UK economic trends. The survey started in January 2002, and research is carried out monthly on behalf of Lloyds Bank by IPSOS. This survey was conducted with 1,200 companies between 1 – 16th July 2026, with a minimum turnover of £250,000.
• To understand more about how the Business Barometer compares to other confidence surveys, read our report here.
• The results are re-weighted to match proportions by sector, region and size of the total business population, as published by the Department for Business and Trade and the Office for National Statistics. Net balances are calculated by deducting the percentage of negative responses from the percentage of positive responses.

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Contact
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SOURCE: Lloyds Bank plc