AI adoption in the UK reached a “tipping point” as businesses shifted from trials to large-scale deployment, Google Cloud said.

Google Cloud vice president for the UK, Ireland and Sub-Saharan Africa Maureen Costello said companies and public bodies that were testing AI tools last year were now using the technology to run more complex processes and improve productivity.

“Industry is on the cusp of a tipping point where AI adoption is accelerating quickly,” Costello told Reuters.

“A year ago the focus was on experimentation, but now we’re seeing organisations put AI into production and begin to realise real returns.”

Costello said the shift was taking place across sectors including retail, pointing to AI-powered shopping tools from THG that had helped boost customer spending.

She said wider adoption could deliver significant gains for smaller businesses, with Google research suggesting AI could increase productivity by about 20 per cent.

Costello said this could effectively give business owners “a day back” each week.

However, she warned that the speed of adoption would depend on investment in skills, leadership engagement and trust, particularly around security and data sovereignty.

“Technology is only half of the answer — people are the other half,” she said.

“Leaders can’t sleep at the wheel, they need to get hands-on and understand how to apply this in their organisations.”

The comments come as the UK looks to strengthen its position as a global AI hub, with London home to a major concentration of tech talent and Google DeepMind.