Over half of UK businesses say AI is creating new jobs, not cutting them

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Over half (54%) of UK businesses say AI created new jobs, new study finds

A similar amount (58%) plan to raise AI skills investment soon

Some firms plan to spend up to £250,000 on Artificial Intelligence training

Concerns that AI would eliminate jobs have dominated public conversation for years, fueling fears of mass unemployment and disruption.

A report from the Lloyds Business Barometer claims over half (54%) of UK businesses say AI has already created new jobs within their organizations.

The findings arrive as firms increasingly treat AI adoption as central to competitiveness, workforce skills, and long-term business growth strategy.

Companies ramp up AI skills spending

The majority (58%) of businesses say they now plan to increase investment in AI tools and skill training over the next twelve months - and of the businesses planning to raise AI investment, 42% expect to spend between £25,000 and £100,000 during the coming year.

Another 26% expect to spend between £100,000 and £250,000, showing a clear appetite for deeper AI skills funding across sectors.

Despite this spending push, 31% of businesses admit their current workforce still lacks the AI skills the company actually needs.

To close that gap, 43% of firms are introducing formal AI skills training while 32% are expanding programs already in place.

A smaller share, 24%, say they now prioritize AI skills when hiring, while 21% are creating entirely new AI-specific roles.

A widening gap between large and small firms

Overall, nearly two-thirds (61%) of UK firms say they currently use AI in some form, though adoption varies sharply by company size and reach.

Cost, cited by 18% of businesses, remains the most common barrier, followed closely by data quality and skills access at 17% each.

Domestic-only firms cite cost as their biggest barrier at 23%, while international firms point more often to data quality at 19%.

Larger businesses with annual turnover above £10 million report AI usage averaging 79%, far ahead of smaller and domestic-only competitors nationwide.

Nearly two-thirds of larger firms say their current workforce already possesses the AI skills the business truly needs right now.

Among larger firms already using AI, 74% cite productivity gains as their main reason for continued and future investment decisions.

Nearly six in 10 businesses believe companies that fail to adopt AI risk falling behind their competitors within a few years, but this confidence in AI's competitive importance varies by size, with 73% of large firms agreeing compared with 54% of the smallest firms.

"AI has the potential to be as transformative for businesses as the internet was," said Amanda Murphy, CEO of Lloyds Business and Commercial Banking.

Murphy added that success depends far more on building internal skills, culture, and confidence than on simply purchasing new technology.

The figures suggest AI adoption across the UK economy is accelerating faster than the workforce skills needed to sustain it.

Whether businesses can close that widening skills gap quickly enough may determine which companies gain a lasting competitive advantage overall.