#ai-investment

#ai-investment

The UK is emerging as one of the world's most attractive destinations for technology businesses, outpacing rivals in the US, Europe and Asia-Pacific, according to new research from Barclays. The bank's latest Business Prosperity Index found that 62 per cent of UK tech leaders see their home market as a better place to grow and scale a business than mainland Europe, with 61 per cent preferring the UK to Asia-Pacific and 60 per cent favouring it over the US.

When President Trump returned to the White House his intention was clear: Make America Great Again. But the United States's economic partners, and some of its rivals, are also benefitting from having the unorthodox showman back in the Oval Office. Investors are watching the U.S. stock market with both enthusiasm and trepidation: The S&P 500 is up 15% over the past year, Treasuries have remained relatively steady, and the Fed's monetary policy is expected to begin a downwards trajectory.

A recent MIT report, titled "The GenAI Divide: State of AI in Business 2025," reveals that while U.S. businesses have collectively invested between $35 billion and $40 billion in AI initiatives, almost all of them (95%) are seeing zero return on their investments or no measurable impact on profits. Only 5% are seeing "value" from AI.

Sam Altman remarked that he believes AI could be in a "bubble," suggesting that investors are overexcited about AI, yet expects OpenAI to invest trillions in data centers.

This week, tech companies are spending amounts of money that stretch the limits of the imagination, with significant investments in AI leading the charge.

Only 7.2% of teams rate their AI strategy as "super effective" with strong ROI. 91% of workers use just 1-4 AI tools weekly, despite companies investing in dozens.

Confidence in corporate AI strategy among C-suite leaders has dropped 11 percentage points in the past year - down to 58 percent in 2025 from 69 percent in 2024.

The Professional and Business Services sector, vital for the UK's economy, is set to receive transformative AI funding exceeding £150 million to enhance growth.

A survey by IBM revealed only a quarter of CEOs see a positive return on their AI investments, highlighting a significant gap in AI effectiveness.

A lack of clarity about future demand makes precise investment calculations difficult. Will demand for datacenters continue to rise, or will it fall as advances are made?