Despite concerns over Trump’s US tariffs and the impact of trade wars, a majority of British business leaders remain optimistic about growth potential.
A new report by Capgemini reveals that 63% of UK business leaders plan to increase investment this year, with six in ten expressing optimism about their growth potential for 2025, as reported by City AM.
Rob Walker, managing director UK business unit at Capgemini, said: “it’s encouraging to see that UK business leaders are feeling more optimistic about their growth potential this year.”
He added: “Our UK clients certainly echo the findings that their technology investments will play a pivotal role in enabling them to enhance competitiveness and productivity in 2025,” However, seven in ten expressed concern about trade tariffs and the impact of trade wars on their organisation. As Donald Trump prepares to be inaugurated as the next US president on Monday 20 January, European and British firms have voiced concerns about the potential impact on trade with the US, seeking exemptions.
The Times reported that independent forecasts suggest tariffs could cause Britain’s GDP to fall by up to 0.9%. The report also revealed that due to fears of trade wars and economic uncertainty, nearly eight in ten UK businesses are de-risking their supply chains.
UK firms are diversifying investments across emerging countries to diminish their dependence on China, with 63 per cent shifting towards friend shoring—opting for sourcing and production in nations deemed allies. UK businesses are upping their commitments to sustainability, as two-thirds indicate plans to expand investment in this field.
Leading the investment surge are climate technologies, along with sustainable research and development, biodiversity, and water management. To facilitate these ambitions, UK companies are channeling funds into battery and solar technologies, nuclear energy, hydrogen, and wind power.
Further, an overwhelming majority of UK businesses, eight out of ten, are prioritising Gen AI technology investments, followed by cloud (41 per cent), data analytics (33 per cent), and cybersecurity (30 per cent). On the subject, Walker noted that “we know that the UK is one of the leading destinations in the world for AI and digital innovation, with a thriving ecosystem that spans academia, engineering, entrepreneurship and progressive policy making.”
“UK businesses are in a prime position to fully unlock the opportunities of this transformative technology, and crucial to this success will be investing in data and engineering upskilling, while aligning their technology investments with enhancing their sustainability and customer engagement,” he summed up.
This follows last week’s revelation that the AI sector has been receiving an average of £200m in private investment daily since July, as companies rally behind Starmer’s blueprint to supercharge AI.
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