UK Firms Boost AI Spending Amid Challenges in Realising Benefits

Nearly all UK organisations are increasing their investments in artificial intelligence as part of their bespoke software strategies, yet many continue to struggle with converting this spending into tangible business value.

According to recent research from bespoke software developer Propel Tech, 93% of organisations will have integrated AI into their software infrastructure by 2026, with 95% planning to raise their AI budgets further. Despite this widespread investment, 85% of companies report difficulties in implementing AI effectively across sectors.

The traditional dilemma of choosing between off-the-shelf software-as-a-service (SaaS) products and custom-built solutions is evolving. AI is transforming bespoke software by enhancing its capabilities, accelerating delivery times, and enabling more tailored development. This shift allows businesses to augment existing platforms with customised, high-performance solutions that better align with their unique processes, data, and strategic objectives, ultimately improving speed and cost efficiency.

Such bespoke AI systems are increasingly regarded as vital infrastructure, expected not only to support daily operations but also to drive efficiency, insight, and growth. Propel Tech has observed a rising demand for solutions that blend the adaptability of custom software with the rapid advancements in AI technology.

David Ritchie, Co-Founder of Propel Tech, stated: “We’re seeing a clear shift in how organisations think about bespoke software. AI is making bespoke solutions more accessible than ever, and quicker to implement, allowing businesses of all sizes to create systems that are much more closely aligned to how they work.”

While generative and agentic AI tools are speeding up development cycles, the key advantage lies in their application alongside human expertise. Wil Jones, Technology & Solutions Director at Propel Tech, explained: “AI helps remove friction from the development process, but the real value comes from combining that capability with human expertise. It means we can focus more time on understanding the problem and designing the right solution. The outcome for clients is better systems that are more responsive, better integrated, and built to support smarter decision-making.”

The 2026 survey also revealed that 84% of respondents found AI investment exposed other business challenges. The most common issues identified were data-related problems (29%), system integration difficulties (28.6%), and cost concerns (27.3%), followed by workforce challenges (22.2%). This suggests AI adoption acts as a diagnostic tool, highlighting weaknesses in core infrastructure and organisational preparedness.

These insights underline that AI does not lessen the need for robust software foundations; rather, it heightens the necessity for solid infrastructure and expert developer involvement. Andy Brown, Co-Founder of Propel Tech, commented: “What we’re seeing is a shift from software as a static tool to software as something that continuously adapts to the business. That creates significant opportunity, but it also requires the right structure underneath it. The organisations that we see succeeding quickest are those that take a considered approach, bringing together data, systems and expertise to build solutions that genuinely deliver value.”

As businesses face growing disruption, bespoke AI-enabled software is becoming a strategic and accessible option for companies of all sizes aiming to enhance performance and scalability. This marks a broader change in perspective—from a simple “build versus buy” choice to designing the optimal combination of platforms and customised systems to support sustained growth.

Ritchie concluded: “The conversation is moving towards ‘what do we actually need, and how can we build it in the smartest way possible?’ AI is making that question far more achievable to answer. To support organisations at that stage, we’re offering a free AI readiness audit to assess systems, identify opportunities and help turn AI investment into practical outcomes.”