Jan 13th, 2025
Adoption of Advanced Digital Technologies and Platforms: Insights from a UK national survey
Executive summary
Based on a national bespoke survey, this study provides an analysis of the adoption and impact of advanced digital technologies (ADTs), including AI, Big Data, Cloud Computing, 3D Printing, Internet of Things (IoT), and Robotics, as well as digital platforms in the UK. Through sectoral, regional, and organisational comparisons, this report sheds light on the widespread but varied adoption of these technologies, offering valuable insights into firms’ outcomes related to productivity, skills development, and business processes.
Key Findings
The study reveals that ADTs are extensively adopted across the UK, with Cloud Computing being the most widely used technology (with up to 80% adoption in all sectors and regions). However, AI adoption remains moderate, with usage intensity being low. More specialised technologies such as Robotics and 3D Printing are adopted less frequently, mainly in the manufacturing and extractive sectors. Companies are increasingly using multiple technologies together, with Cloud Computing most frequently paired with AI and Big Data, underscoring a trend towards data-driven business processes.
The adoption rate is notably higher in regions with established business hubs, such as London, the North West, and the West Midlands. The study highlights significant regional disparities in the adoption and usage intensity of ADTs, with London showing higher adoption rates and greater integration of technologies such as AI and Robotics. Smaller businesses, however, face greater challenges in adoption, although Cloud Computing is an exception where SMEs show similar adoption levels as larger firms.
The main drivers for adopting ADTs include process improvement, quality enhancement, and automation. Barriers to adoption vary by technology, but common challenges include high costs, skill shortages, and concerns over security, reflecting the challenges of integration and adaptation during initial adoption.
ADTs increase the need for STEM capabilities and digital skills among employees, which are necessary for operating advanced technologies. Digital skills are more critical for ADT adopters, who report a pronounced need for skills like digital information literacy and cybersecurity, reflecting the increasing reliance on data and the necessity for secure information handling. But non-digital skills—particularly in resource management and social skills—are also highly relevant.
Platform adoption is increasing, with larger firms leading the way, particularly in operations-centred platforms. However, many smaller firms struggle, especially with distribution-centred platforms, due to resource constraints and misalignment with their needs. Adoption is concentrated in the service sector, particularly in London and the South East, highlighting a regional digital divide.
Platform adoption shows strong results, with operations-centred platforms improving internal efficiency, and distribution-centred platforms driving innovation, especially in customer engagement and product development. These platforms complement each other, enhancing both internal processes and external responsiveness, leading to better overall performance.
Significant barriers remain, with many firms perceiving platforms as irrelevant to their operations. High costs, the need for structural changes, and resource limitations, especially among smaller firms, continue to hinder broader adoption, emphasizing the need for better alignment, communication, and support to overcome these obstacles.
Authors Silvia Massini, Mabel Sanchez-Barrioluengo, Xiaoxiao Yu, Myungun Kim, Philip Chen, Chander Velu