The UK is on a mission to supercharge its economy, and technology is at the heart of it. The government have published the Technology Adoption Review alongside the ‘Modern’ Industrial Strategy as blueprints for how the UK plans to harness the power of digital technologies in the next 10 years and increase business investment and growth. In this article, Dr Mabel Sanchez Barrioluengo and Professor Silvia Massini outline their research  which played a key role in shaping the Technology Adoption Review, making recommendations on how this evidence can be used to evolve and enhance tech adoption.

• The University of Manchester contribution to the Technology Adoption Review contributed to identify the key challenges that businesses face when trying to adopt cutting-edge technologies.
• Research findings demonstrated how the use of advanced digital technologies vary by region (with London taking the lead), sectors and company size (with SMEs facing more difficulties).
• A co-ordinated approach is needed to address demand for specific skills across different technologies, taking into consideration existing regional capabilities.

Where does the UK stand on tech adoption?

Our “National Adoption of Digital Technologies and Skills (N-ADiTS) survey 2024” paints a clear picture that UK is embracing digital transformation. 90% of UK firms have adopted at least one of the following advanced digital technologies (ADTs): AI, Big Data, Cloud Computing, 3D Printing, IoT (Internet of Things), Robots. However, it’s not a uniform landscape – while ADTs are widely diffused, the extent of adoption varies significantly between different technologies.

Cloud Computing is the most widespread technology, with four out of five companies utilising it. Its wide reach stems from its flexibility and broad applicability, benefiting areas from storage to collaboration and data analytics, covering all regions and sectors, including both SMEs and large companies.

AI ranks second in terms of usage, with nearly half of the companies adopting it, while Big Data ranks third, with a 37% adoption rate. Similar patterns of usage are observed for IoT and Robotics, though their overall adoption rates are currently lower.

Businesses aren’t just adopting one technology – they’re combining them for even greater impact. Our survey shows that almost one out of four companies have adopted at least two ADTs. The most common combinations are Cloud Computing and AI, and Cloud Computing and Big Data, reinforcing the importance of data and signalling a strong move toward digital-first business processes.

Adoption by geography and sector

The spatial patterns and diffusion processes of these ADTs vary. While Cloud Computing is adopted by at least three-quarters of companies in every region, London consistently outpaces all other regions for the adoption of other technologies.

In other regions, AI adoption ranges from 32% (North-East) to 44% (East of England). Big Data is primarily adopted in London (57%) and the Northwest (40%), followed closely by Scotland (36%), the East Midlands (35%), and the South-East (35%).

IoT adoption is also highest in London (40%), followed by Northern Ireland (32%), and the North-West (25%) with lower adoption rates in other regions. Robotics and 3D Printing have lower overall adoption rates, with their highest levels also found in London (28% and 30% respectively).

Looking at specific sectors, in manufacturing ADTs adoption is more evenly distributed, with AI adopted by about 50% and IoT by one-third of companies, while Robotics is adopted by almost half of manufacturing companies.

By contrast, ADTs adoption in services is more polarised, with high adoption of Cloud Computing (81%), followed by AI (47%) and Big Data (35%). In terms of company size, larger businesses generally exhibit higher ADT adoption rates. Smaller firms adopt AI less (one in three) than larger firms (almost two out of three), and usage intensity also increases with company size, with larger firms using ADTs at higher intensity.

What’s holding businesses back? The barriers to adoption

Despite clear benefits, companies face hurdles when it comes to fully embracing ADTs. Our survey identified some of the most significant barriers to adoption, including the immaturity of the technology, high costs, concerns about security, and a lack of access to skilled personnel.

For instance, despite the widespread adoption of Cloud Computing, some businesses refrain from adopting it primarily because of safety and security concerns.

AI is often considered insufficiently mature, comes with concerns over safety/security and a lack of human capital or skills. Big Data adoption is hindered by a lack of human capital as well as cost concerns.

Meanwhile, the costs associated with 3D Printing and Robotics are cited as barriers even more often than skill shortages. IoT adoption is somewhat hampered by safety and security concerns slightly more than by other factors.

These concerns around the safety and security of ADTs call for further data regulations – government should prioritise the development of policies addressing data access and strengthen the responsiveness and agility of policies in view of rapidly changing contexts, to include security as well as ethical considerations around AI.

Skills for the digital age

Our research also delved into the crucial role of skills, confirming significant differences in how tech adopters and non-adopters perceive skills importance. Adopters consistently rank digital skills higher and more critical than non-adopters. Among digital skills, “digital information and data literacy” and “digital safety” are the most important for adopters, while “resource management skills” and “social and soft skills” are considered the most essential among non-digital skills.

For non-adopters, “digital safety” and “management skills” are the most relevant within each category. These patterns remain consistent across different ADT types, with the exception of Big Data, 3D Printing, IoT, and Robotics, where “system skills” are prioritised over “social and soft skills” by technology adopters.

This mix of priorities coupled with consistent demand for specific skills across different technologies reinforces the need for a co-ordinated approach between the Industrial Strategy and education policies. By investing in the right skills, government can empower more businesses to adopt and thrive with advanced digital technologies, ultimately boosting the UK’s growth mission.

How can we boost tech adoption?

Our research highlights the following as crucial for boosting tech adoption:

• Play to our strengths: It is important for policymakers to leverage national and regional technology strengths, recognising the different levels of technology diffusion, and maximising complementarities between technologies.
• Tailored tech policies: Our research indicates that one size doesn’t fit all. Some regions are already buzzing with specific digital technologies. Government should ensure policies are placed-based, designed to support and accelerate this regional specialisation, ensuring we nurture the right skills and technological capabilities in the right places.
• Smart, specific support: The challenges businesses face with technology adoption vary wildly depending on the tech, the industry, and the company’s size. Government support must target specific and diverse needs.
• People first: Technology is only as good as the people using it. Our research strongly advocates for a “human-centric” approach, emphasising the fundamental role of skills. This means linking the Industrial Strategy with education policies to ensure we’re developing the talent needed for the technologies of tomorrow.