Technology Adoption Review: A start, but not the end, to seize the role of tech and solve the UK’s productivity problem

The UK government released its response to the Tech Adoption Review alongside the Industrial Strategy and Digital and Tech Sector Plan. Led by Chief Scientific Adviser Angela McLean and National Technology Adviser Dave Smith, the review examined technology adoption barriers across eight growth sectors and gathered over 200 responses. 

While techUK welcomes recognition of AI's productivity potential and the Made Smarter programme's manufacturing success (with expansion of the programme to other high-growth sectors), we call for greater ambition to address the UK's lagging adoption rates and secure competitiveness. The review marks a start, not an end, to tackling this challenge. 

Key findings and barriers echo techUK member sentiment – including government’s role as a convenor to drive change: 

The review confirms the UK's productivity gap versus France and Germany, attributing it to lagging technology adoption. It recognises government's crucial role in guiding adoption – as a convenor and to guide private sector adoption - something techUK has long advocated through cross-departmental coordination and consistent data provision. 

Key barriers identified in the review align with techUK member feedback: financial constraints, skills gaps, resistance to change, regulatory uncertainty, and inadequate digital infrastructure awareness. 

The government response focuses on business support, AI skills development, and more strategic coordination, particularly expanding successful programs like Made Smarter. However, techUK believes it lacks sufficient evidence base and SME support for basic digital adoption. 

A key strength is recognising government procurement as a tech adoption driver, using supply chain influence and public-private interactions (i.e., in areas such as taxation and planning) to incentivise private sector uptake - an approach techUK has consistently championed. Along with the need for further cross-government co-ordination across departments. 

Business support puts onus on Made Smarter programme: 

Business support and steps to support digital and tech adoption puts the onus on Made Smarter adoption programme to support this. The review confirms:  

  • Expansion of Made Smarter Adoption for the advanced manufacturing sector, increasing its reach across England.  
  • Utilising best practice from Made Smarter Adoption to become ‘Create Smarter’ to streamline industry access and adoption efficacy. 
  • Delivering a version of the Made Smarter Adoption Programme to tailor expertise to help the Professional Business Services (PBS) Sector. 

techUK has long advocated expanding the successful Made Smarter Programme beyond manufacturing to all high-growth sectors, recognising its proven approach of expert advisors, digital road mapping, leadership programmes, and internships following the North-West pilot. 

s previously recognised by techUK, the review notes that an AI-driven ‘Technology Consultant-as-a-service’ or ‘Technology Navigator app’ could help businesses to initially triage and help with the provision of information. Onus here is on the private sector to develop this. We note that Singapore have seen high SME digital tech adoption rates and leant on their CTO as a Service model to support this.  

Boost productivity with AI adoption 

The review recognises AI's potential to boost UK productivity by 1.5% annually (£47 billion yearly). Government proposals include supporting AI assurance, creating regional 'AI adoption hubs' for sector-specific business support, and establishing an Industrial Strategy AI Adoption Fund for cutting-edge solutions. 

However, techUK believes the recommendations lack ambition to meaningfully accelerate AI adoption. On behalf of our members, we will continue with the government to support delivery on AI adoption hubs and guide the initial stages of the AI Adoption Fund.  We note that there was further detail within the government’s Industrial Strategy and Digital and Technologies Sector plan on these items. 

Aligning with the Industrial Strategy, sector specific interventions  

The review outlines recommendations across the high-growth sectors identified in the Industrial Strategy. Many of these recommendations align with announcements made in the Industrial Strategy. The review falls short on specific recommendations for the ‘digital and tech sector’ and puts onus on the sector to ‘identify opportunities for their products and services to meet the needs of the other growth driving sectors in the UK’.  

Highlights across sectors include: 

  • Advanced manufacturing: Expansion of Made Smarter Adoption programme 
  • Clean energy industries: Increased use of AI to streamline planning process and optimise energy use. Enabling use of AI, digital and advanced technologies to accelerate consenting of clean energy, drive rapid scale-up of generation capacity, use of AI and energy data to unlock smarter meters for business. 
  • Creative industries: Establishing business to business and createch demonstration hubs and develop a facilities directory and strategic roadmap for the subsectors in the creative industries to access sectors in the Creative Industries.  
  • Defence: Further promoting tech adoption in defence government procurement, establishing a voluntary Defence Technology Adoption Charter and increasing use of secure digital testing spaces 
  • Financial Services: Financial regulators build on existing mechanisms, such as the FCA AI Lab, ensuring skills fit for the future through the Financial Services Skills Commission, guidance on Digital IDs for compliance with Anti-Money Laundering regulations. 
  • Life Sciences: Ensure that the MHRA is resourced to expand capacity in the innovation service and ensure that the recently announced Health Data Research Service answers industry’s call to make the UK’s health data easier. 
  • Professional and business services: a PBS version of Made Smarter Adoption to improve accessibility of public datasets for use by the sector. 
  • Digital and Tech: Focus on leveraging the digital and tech sector’s strength to make tech adoption central to the ambition to make the UK one of the top three places in the world to create, invest in and scale-up a fast-growing technology business. 

techUK continued action 

Overall, the strategy recognises areas that could be developed to support tech adoption across sectors and industry. However, it lacks the impetus to drive real change. 

We still await the SME digital adoption taskforce report, along with the SME growth strategy. techUK sit on the Taskforce and continue to support the development of the final report – using guidance and steer from our members.  

To support digital tech adoption, we continue to call for the government to: 

  • Better support SMEs with basic tech adoption to enable the adoption of frontier technologies like AI. 
  • Drive accountability and assign a Minister with responsibility for tech adoption. 
  • Improve the data for measuring the UK’s standing on digital and tech adoption. 
  • Draw inspiration from international best practice where programmes have understood their intended audience and combined targeted support, financial incentives, regulatory reforms and accessible training to drive transformative shifts in digital adoption across a wide range of businesses. 

For more information, please contact: 

Edward Emerson

Edward Emerson

Head of Digital Economy, techUK

Edward leads the Digital Economy programme at techUK, which includes our work on online safety, fraud, and regulation for growth initiatives.

He has prior experience working for the Department for Digital, Culture, Media and Sport and has previously worked for a number of public affairs consultancies specialising in research and strategy, working with leading clients in the technology and financial services sectors.

Email:
[email protected]
LinkedIn:
https://www.linkedin.com/in/edward-emerson-009189183

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Mia Haffety

Mia Haffety

Policy Manager - Digital Economy, techUK

Mia joined techUK in September 2023.

Mia focuses on shaping a policy environment that fosters the expansion of the UK tech sector while maximising the transformative potential of technology across all industries.

Prior to joining techUK, Mia worked as a Senior Policy Adviser at the Confederation of British Industry (CBI) within the Policy Unit.

Mia holds an MSc in International Development from the University of Manchester and a BA(Hons) in Politics and International Relations from the University of Nottingham.

Email:
[email protected]
LinkedIn:
https://www.linkedin.com/in/miahaffety/

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Archie Breare

Archie Breare

Policy Manager - Skills & Digital Economy, techUK

Archie Breare joined techUK in September 2022 as the Telecoms Programme intern, and moved into the Policy and Public Affairs team in February 2023.

Before starting at techUK, Archie was a student at the University of Cambridge, completing an undergraduate degree in History and a  master's degree in Modern British History.

In his spare time, he likes to read, discuss current affairs, and to try and persuade himself to cycle more.

Email:
[email protected]
LinkedIn:
linkedin.com/in/archie-breare-512346230

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Antony Walker

Antony Walker

Deputy CEO, techUK

Alice Campbell

Alice Campbell

Head of Public Affairs, techUK

Edward Emerson

Edward Emerson

Head of Digital Economy, techUK

Samiah Anderson

Samiah Anderson

Head of Digital Regulation, techUK

Audre Verseckaite

Audre Verseckaite

Senior Policy Manager, Data & AI, techUK

Mia Haffety

Mia Haffety

Policy Manager - Digital Economy, techUK

Archie Breare

Archie Breare

Policy Manager - Skills & Digital Economy, techUK

Nimmi Patel

Nimmi Patel

Head of Skills, Talent and Diversity, techUK

Daniella Bennett Remington

Daniella Bennett Remington

Policy Manager - Digital Regulation, techUK

Oliver Alderson

Oliver Alderson

Junior Policy Manager, techUK

Tess Newton

Team Assistant, Policy and Public Affairs, techUK