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House of Lords written question HL566.

Question for Department for Science, Innovation and Technology

UIN HL566, tabled on 16 June 2026

To ask His Majesty's Government what assessment they have made of the extent to which the adoption of artificial intelligence technologies by businesses is translating into measurable productivity improvements.

Answered on

30 June 2026

UK business AI adoption has more than doubled since December 2023, reaching26% in March 2026. The latest available data form the previous year indicates that the UK business adoption rate was higher than the EU-27 average and comparable with Germany and the Netherlands.

In January, DSIT published an initial assessment on AI’s impacts on the UK labour market. This includes evidence of productivity gains from AI use at the task and worker level, drawn from experimental studies. Realising these gains across the wider economy is likely to involve a period of organisational adjustment, in which firms experiment with AI tools, integrate them into their workflows, and train staff. This may temporarily slow measured productivity before the benefits are fully realised.

In June 2026, the Government launched the AI Economics Institute (AIEI) – the first government-backed institute of its kind in the world – to build the data infrastructure, analytical capability and external relationships needed to rigorously assess AI’s economic impacts. A joint research organisation of HM Treasury and DSIT, the AIEI will examine how AI is affecting UK productivity and growth, improving the quality and timeliness of the evidence and analysis on which policy decisions rest.