Professional and business services prioritised by government for UK AI adoption
Artificial intelligence has become a key part of the government’s plan for the UK industrial sector. The professional and business services sector is in line for a significant investment to help deliver the required digital infrastructure.
Over the last three years, excitement around technology and tools relating to AI has reached fever pitch. As the government looks to enable businesses across the UK to avail themselves of the technology, it has set out a new industrial strategy. The plan aims to result in an increase in technology adoption and AI integration, particularly in the professional and business services sector.
Hywel Pegler, head of professional and business services at RSM, commented, “The industrial strategy recognises the role of professional and business services in driving UK productivity, by helping other businesses to become more productive and resilience. The strategy also makes clear there’s expectations for a significant increase in this, by doubling business investment in the sector to £65 billion, which will help to realise the government’s ambition for the UK to be recognised as the world’s most trusted adviser globally by 2035.”
The plan for the professional and business services market includes the expansion of the Made Smarter Adoption programme, as part of a £150 million package to support the sector. Made Smarter Adoption is UK government-backed initiative focused on helping small and medium-sized manufacturing businesses adopt digital technologies and skills – and its support of the consulting sector will be crucial if advisory firms are to rise to the challenge, with many needing to ramp up capacity, at a time when some of the largest firms are reducing headcount.
“The sector employs 14% of the UK’s workforce, advising businesses in other industries on scaling up, raising finance, exporting, managing risk and investing,” Pegler explained. “However, it still faces recruitment challenges, particularly towards hiring people in more senior and specialist roles. The expansion of the Made Smarter Adoption programme will therefore ensure greater adoption of tech and AI, which will enable more cost-effective and tailored solutions.”
The government is making further plans to reform the Professional and Business Services Council (PBSC), to act as a champion for the sector in the UK and overseas. It will play a key role in aligning these efforts, ensuring that best practice towards tech and AI adoption is shared and scaled across the UK and overseas, harnessing the expertise within hubs and the Made Smarter pilot across the North of England. This includes ensuring that professional services firms balance their adoption of technology with promoting a pipeline of talent for the future – as many firms are also considering replacing entry-level roles with AI.
Pegler concluded, “Despite the focus on upskilling in tech and AI, it’s important that firms aren’t solely data-led, but find the most effective use of the technology to enable more meaningful, human-led client engagement. This requires setting clear, collaborative parameters with clients to ensure technology enhances, rather than replaces in-person interactions.”
