A new survey of UK IT decision-makers conducted by Red Hat indicates that artificial intelligence is becoming a defining element of technology strategy, with organizations expecting to increase AI investment by an average of 32% by 2026. Over the next 18 months, AI and security are tied as the top strategic priorities for 62% of respondents, followed by hybrid/multi-cloud (58%) and virtualization (57%).
Despite this heightened focus, the study reveals a substantial execution gap: 89% of UK organizations say they are not yet generating customer value from their AI initiatives. Nearly all respondents (95%) report barriers to AI adoption, most commonly the high cost of implementation and maintenance (34%), data privacy and security concerns (30%), and integration with existing systems (28%).
Interest in advanced AI techniques is strong. The highest-ranked AI priority is agentic AI—autonomous systems capable of multi-step task execution—identified by 68% as a strategic focus. Enabling wider employee use of AI (68%) and operationalizing AI at scale (65%) also rank high on the agenda. At the same time, 83% of organizations report some level of “shadow AI,” with employees using unapproved AI tools.
To help address these challenges, UK organizations continue to lean heavily on open source technologies. The survey finds that enterprise open source software is considered important to AI strategy by 84% of respondents, and similarly important to virtualization (88%), hybrid/multi-cloud environments (86%), and security (83%).
Confidence in the UK’s AI prospects is strong but not absolute. 83% believe the UK is, or could become within three years, a global AI leader. However, this sentiment trails other European countries surveyed: Spain 99%, Sweden, Germany, and the Netherlands all 98%. Respondents cite key obstacles to the UK’s advancement, including a limited talent pipeline (34%), insufficient public funding (32%), and limited private-sector engagement (32%).
Cloud strategy remains closely intertwined with AI adoption. Organizations cite continued barriers to cloud progress, including internal silos (46%), sovereignty concerns (44%), delayed infrastructure investment due to market uncertainty (42%), and challenges proving ROI (41%). When asked about cloud sovereignty plans for the next 18 months, top priorities include operational control and autonomy (72%), securing the software supply chain (69%), and maintaining supplier flexibility (69%).
Joanna Hodgson, Country Manager, UK at Red Hat, said: “This year’s UK survey results show the gap between ambition and reality. Organizations are investing substantially in AI but currently only a few are delivering customer value. In the journey from experimentation to sustainable production, enterprise knowledge and integration with enterprise systems must pave the road to achieving value from AI.
“Openness is a force for greater collaboration, sharing best practice, and enabling flexibility. As is the case with successful hybrid cloud investments, open source will continue to be the bedrock for making AI more consumable and reusable.”
Hans Roth, Senior Vice President & General Manager EMEA at Red Hat, said: “Organizations want greater operational control and IT resiliency to adapt in a world of constant disruption. The survey results, as well as our daily conversations, show sovereignty prominently on the agenda for enterprises’ ongoing cloud strategies and the budding AI opportunity.
“Open source is central to this shift as it provides businesses with the transparency and flexibility to innovate rapidly without compromise. Red Hat helps enterprises retain choice about where their data lives, how their infrastructure runs and who they partner with. Sovereignty and resilience come from ecosystems, not silos, and Red Hat’s mission is to enable any model, any accelerator, and any cloud – with trust at the heart of it all.”