UK's AI Sector Booms Post-ChatGPT Launch, Consumer Enthusiasm Lags

The UK's artificial intelligence industry has seen a dramatic increase in new companies, with London leading as the hub for AI innovation. Despite this surge, consumer interest in AI for shopping remains tepid.

AI Expansion in the UK

A Tripling of AI Companies

In the year following ChatGPT's launch, the UK has witnessed a significant boom in its AI sector. The number of new businesses incorporating 'AI' into their names has soared by 202%, with a total of 1,284 companies established.

London: The Epicenter of AI

According to a study by Hard Numbers based on data from UK Companies House, nearly half of these new AI entities are based in London, which houses 625 firms. This figure starkly contrasts with other cities like Manchester, which hosts just over 3% of the AI firms compared to London's count.

Consumer Sentiment on AI

Skepticism Toward AI in Shopping

Despite the sector's growth, a report from Storyblok indicates that 85% of consumers are not keen on using AI to influence their purchasing decisions. Many respondents feel indifferent or even less likely to buy when presented with AI recommendations.

The Dominance of Websites Over Apps

While websites are seen as more valuable than mobile apps or social media by consumers, the majority still prefer shopping on their smartphones. This paradox underscores the need for brands to optimize their websites for mobile use.

Industry Insights and Challenges

The Fifth Industrial Revolution

Paul Stollery of Hard Numbers suggests that the rapid growth of AI signifies the dawn of a new industrial era. He compares the potential impact of AI to transformative technologies like steam power and the internet.

Aligning with Consumer Desires

Storyblok CEO Dominik Angerer highlights that while brands may chase emerging trends like AI, consumers still value authentic content and user-friendly websites, especially during peak shopping seasons like holidays.

Conclusion

The UK's burgeoning AI landscape contrasts with consumer attitudes toward technology-assisted shopping. As the industry continues to grow, it faces the challenge of aligning technological advancements with consumer preferences and behaviors.