Market Trends of United Kingdom Digital Transformation Industry
Analytics, Artificial Intelligence and Machine Learning is Anticipated to Witness Growth in Demand
- Artificial intelligence (AI) is reshaping the United Kingdom's technological landscape by creating significant opportunities for technological innovation in businesses across the country. The UK Government's National AI Strategy underscores AI's pivotal role in bolstering economic resilience, productivity, and innovation, spanning both public and private domains.
- The presence of a high number of AI companies in the country supports the segment growth. In 2023, the Global AI Ecosystem reported that the United States spearheaded the global AI market, boasting around 15,000 active companies. Notably, the United Kingdom, with nearly 9,000 AI firms, ranked second worldwide. Such factors further support the development of the AI ecosystem in the United Kingdom, supporting the market's growth.
- As of 2024, a survey in Great Britain by the Office for National Statistics (UK) reveals that 45% of the surveyed respondents stated that there are equal benefits and risks in the use of artificial intelligence (AI) solutions. About 25% are more concerned about the risks, with 16% confident that the benefits surpass the potential downsides of AI implementation. Therefore, the positive user perception towards AI and given the vast opportunities and benefits of AI adoption, businesses in the United Kingdom are analyzed to ramp up implementation efforts in the coming years.
- Global market vendors are recognizing the growing demand for AI, ML, and analytics in UK businesses and expanding their presence in the country, thus positively impacting the market's growth. For instance, in April 2024, Microsoft announced that Microsoft AI is opening a new AI hub in London, United Kingdom. Microsoft AI London aims to spearhead advancements in language models and their infrastructure. The hub will also focus on developing top-tier tools for foundational models, working closely with Microsoft's AI teams and partners, such as OpenAI.
Understand The Key Trends Shaping This Market
Download PDF
Healthcare Industry is Expected to Boost the Market Growth
- One of the main drivers of healthcare innovation in the United Kingdom is the patient experience and quality of care. Healthcare providers and organizations across the country are constantly looking for advanced technologies to improve patient care. The use of mobile apps and wearable technology is growing in the United Kingdom to assist with remote patient care.
- Further, according to a survey by the Health Foundation in 2023 in the United Kingdom, more than half of the Country's population (56%) believed that technology improves the quality of healthcare services. This indicates the growing public awareness of the adoption of technology in the country's healthcare sector. Healthcare organizations are analyzed to boost technology adoption and are expected to drive the growth of the market.
- The government in the country is recognizing the growing need for advanced technologies in the healthcare sector and investing heavily to boost technology penetration in the country's healthcare sector. Such developments are analyzed to positively influence the growth of the studied segment over the forecast period. For instance, in March 2024, the UK government unveiled an approx 1,032 million investment plan, aiming to modernize public services, notably in policing and healthcare, through technology.
- This financial commitment was disclosed during UK Chancellor Jeremy Hunt's Spring Budget presentation in the House of Commons. Addressing his peers, Hunt emphasized the need to address inefficiencies in public services, particularly highlighting the potential for technology to enhance both the National Health Service (NHS) and national policing. Under these reforms, AI will significantly reduce NHS scan times, while the police force will incorporate drones for swift responses, especially in scenarios like traffic collisions.
