Majority of businesses embrace AI to stay competitive

New research from Tech.co indicates that a majority of businesses are adopting artificial intelligence (AI) primarily due to competitive pressures.

Tech.co's latest report, '2025 Impact of Tech on the Workplace', reveals that 58% of business leaders surveyed have implemented AI technologies driven by the necessity to remain competitive in their industries. The survey gathered insights from 1,036 business leaders, including directors and senior executives, to understand the motivations behind AI adoption.

The data suggests that while competitive pressure is the predominant cause of AI adoption in business, external stakeholders also play a critical role. Investors and shareholders apply significant pressure, with 41% and 30% of surveyed businesses respectively acknowledging these influences.

AI adoption amongst businesses has increased notably, with 85% of companies currently engaged in AI usage and investment. This figure marks a 20% growth compared to the previous year, as businesses become more convinced of AI's value.

The report suggests a significant shift in attitude, as only 15% of businesses surveyed have yet to embrace AI. Previously, numerous leaders were sceptical about AI's potential, but many have now begun to invest in these tools.

Return on investment (ROI) for AI technologies appears promising, with 44% of businesses experiencing very high or high returns. A further 32% reported their results as meeting expectations. Although 17% expressed dissatisfaction with their AI investments, citing low returns, this group remains a minority.

Jack Turner, Editor of Tech.co, commented on the findings: "An old adage is being applied to new tech - 'If you can't beat them, join them', as the latest Tech.co report has revealed that the main factor for companies adopting AI is pressure from competitors. A fear of being outpaced and outdone is fueling the rush to AI integration, and not without results. With almost half of the businesses we spoke to reporting high or very high returns on their AI investments, it's clear that the early adopters are being rewarded."

The findings show a marked trend among businesses to rely increasingly on AI in efforts to maintain a competitive edge and meet stakeholder expectations. The transition towards greater AI reliance signifies an evident industry-wide transformation, as businesses adapt to fast-paced technological advancements.