The UK tech industry at a glance
In 2024, the UK’s tech industry stands at a pivotal crossroads, as highlighted by industry insights and predictions. Artificial Intelligence (AI) emerges as a focal point on the national agenda, with the government recognising its potential to drive productivity and economic growth. Prime Minister Rishi Sunak emphasises AI as a tool to enhance job performance rather than replace human roles, echoing sentiments from the AI summit at Bletchley Park. However, concerns persist regarding AI’s impact on cybersecurity, particularly in the context of potential disinformation campaigns during elections.
(TechRepublic, 2024)
Amidst the challenges faced by the UK’s tech industry in 2024, there are significant opportunities for growth and innovation. With the government’s clear commitment to harnessing artificial intelligence (AI) to boost productivity and drive economic growth, tech companies have a unique chance to lead the way in adopting emerging technologies (Tech Republic, 2024). The UK’s AI strategy presents a pathway for companies to explore new avenues of efficiency and creativity (Tech Republic, 2024). Additionally, the focus on rethinking tech investments and embracing emerging technologies signals a shift towards agility and innovation within the industry. As businesses navigate the evolving landscape of the tech sector, there is a prime opportunity to leverage AI, fintech, and other cutting edge technologies to drive positive change and shape the industry’s future in the UK.
(Tech Republic, 2024)
The outlook for
2023-2024
- Industry pain points
- Increasing Competition for Top Talent (Adria Solutions, 2023)
- Economic Instability and Workforce Adjustments (BDO, 2023)
- Cybersecurity Threats, mainly driven by generative AI, pose significant risks to various industries, with predictions of a spike in attacks targeting sectors like healthcare (TechRepublic, 2024)
- Sluggish Mergers and Acquisitions (BDO, 2023)
- Investment prospects
- Quantum Computing holds immense potential for innovation but remains limited in practicality and accessibility, necessitating preparation for future opportunities (TechRepublic, 2024)
- Inject GenAI into digital transformation strategies and establish a control tower (EY, 2023)
- Research and Development (R&D) Tax Credits: The government has announced a £280 million package to simplify and improve R&D tax credits to stimulate innovation and investment in technology (Crowe, 2024)
- The UK Government Backs Tech Investment by promoting the UK’s tech potential, urging investors to seize opportunities and keep promising companies at home (More About Advertising, 2024)
