Latest news with #HannJuHo
Daily Mail
24-06-2025
- Business
- Daily Mail
British firms are already reaping the benefits of AI, says Lloyds
British firms are set to ramp-up investment in artificial intelligence over the next year, with four in five early adaptors already enjoying a boost to productivity, according to Lloyds Bank. Almost 60 per cent of firms are already embracing AI, according to the bank's Business Barometer survey, 82 per cent of which say it has boosted productivity. Productivity was also the biggest driver of AI investment (46 per cent), Lloyds said, followed by profitability (41 per cent) and the need to compete with larger rivals (31 per cent). Over half (56 per cent) of British businesses intend to make fresh AI investments over the next year, and a quarter of 'non-adopters' plan to start using the technology for the first time. However, only around one in six firms (17 per cent) expect to create new AI-specific roles at their organisation. Among those who have not started using AI, 42 per cent said the biggest barrier was the cost of technology, while 32 per cent claimed it was the absence of AI-specific skills. Boost: More than four in five UK companies utilising artificial intelligence say it has improved their productivity, according to a Lloyds Bank survey To raise the chances of increasing AI investment, 48 per cent of companies suggest having a better understanding of AI and how it could benefit them. Hann-Ju Ho, senior economist at Lloyds, said: 'AI is enhancing two pillars of business growth: productivity and profitability. 'Our data suggests that up to a quarter of businesses not currently using AI will adopt it by this time next year, with significant degrees of follow-on investment planned from current adopters. 'As businesses explore how to unlock more of AI's benefits, they will look to others for inspiration and support. 'Collaboration and experience-sharing will play a central role in fully capitalising on the technology's potential while keeping up to date with the latest iterations.' Last year, Microsoft estimated that the UK could add £550billion to its gross domestic product by 2035 by embracing AI and cloud technology, equivalent to a 2 per cent rise in annual growth rates. By comparison, delaying the rollout of AI over the coming five years could cost the country £150billion. The US tech giant said AI had the potential to accelerate the development of new science and technology, create entirely new products and services, and save time for individual workers. Britain's AI market was valued at £72.3billion in 2024, the world's third-largest after the United States and China, according to the UK Government. Prominent names in the British AI sector include chipmaker Graphcore, Wayve, which makes technology for self-driving vehicles, and Deepmind, whose parent company is Google owner Alphabet.
Daily Mail
29-05-2025
- Business
- Daily Mail
Business confidence hits nine-month high in May as 40% of firms say they'll hire more staff
A survey of business owners showed that confidence increased to a nine-month high in May, as financial markets recovered and trade tensions calmed. Lloyds bank's latest Lloyds Business Barometer shows a jump of 11 points to 50 per cent, the highest point since August 2024. In April the index, which surveys 1,200 firms with annual turnover above £250,000, had recorded a 10-point drop. Hann-Ju Ho, senior economist at Lloyds Commercial Banking, said there had been a 'sharp increase in economic optimism, reflecting the recovery in financial markets amid the easing of global trade tensions.' As a result, some 40 per cent of businesses said they expect to increase their staffing levels, up three points from April, while 34 per cent said they expected pay growth of three per cent or higher. Ho added: 'Equally as encouraging is the fact that trading prospects, wage expectations and hiring intentions also saw improvements this month. 'The positive trends in these metrics are important signals for potential growth and resilience in the business community and the wider economy.' This boost came after economic optimism also increased, rising 16 points, while trading prospects also grew amid signs of progress in global trade agreements. The service sector reached its highest confidence point for the past year, passing 54 per cent, while construction hit a nine-month high of 56 per cent. Manufacturing rose two points to 40 per cent. Retail slumped, however, falling five points to 40 per cent, its lowest point since January. The rise in business confidence was seen across the UK, with nine of the UK's twelve regions seeing stronger confidence, most prominently in Northern Ireland, the East Midlands and the South West. In particular, the East Midlands saw its highest levels of business confidence since 2018, reaching 66 per cent for May. Paul Kempster, managing director for commercial banking coverage, Lloyds Business and Commercial, said: 'The jump in business confidence for our regions and nations is encouraging. 'It's great to see that across many metrics, businesses are more hopeful for the future and are backing themselves for success in 2025. 'As business confidence regains, we are committed to support businesses with a range of financial services to help them to seize opportunities and achieve their growth ambitions.'
