UK businesses ramp up AI investment – but most still struggle to see real returns

Image credit: Propel Tech

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UK businesses are increasing their investment in artificial intelligence (AI) for bespoke software solutions, with 93% already investing and 95% planning to increase spending by 2026. However, many companies struggle to see tangible returns from these investments, with 85% reporting challenges in AI implementation. Propel Tech, a bespoke software development firm, highlights that while AI enhances software delivery and adaptability, it also exposes underlying issues in data, systems, and costs, emphasising the need for strong software foundations and expert developer input.

Press Release

PRESS RELEASE: April 2026

For more than a decade, organisations have faced a familiar choice: adopt off-the-shelf SaaS products or invest in bespoke software. But that black-and-white “buy vs build” decision is no longer relevant.

Artificial intelligence is rapidly changing what bespoke software can do, the speed of delivery, and how it is built. However, many organisations are still working out how to translate growing AI options into meaningful outcomes.

Recent insight from UK bespoke software development firm Propel Tech shows that in 2026, 93% of organisations are already investing in AI as part of their software infrastructure, with 95% planning to increase spend further. Yet turning that investment into measurable value remains a key challenge across all sectors, with 85% reporting issues when implementing AI.

As AI accelerates bespoke software delivery, tailored solutions are becoming more accessible, more adaptable, and better aligned to deliver faster returns. Rather than replacing SaaS, this shift is enabling organisations to build on existing platforms with tailored, high-performing solutions that reflect their processes, data, and strategic goals – delivering greater speed and cost efficiency.

As a result, bespoke AI systems are increasingly being viewed as critical infrastructure, expected not just to support operations, but to actively drive efficiency, insight, and growth.

Against this backdrop, bespoke software specialist Propel Tech is seeing growing demand for solutions that combine the flexibility of custom development with the accelerating capabilities of AI.

David Ritchie, Co-Founder of Propel Tech, comments: “We’re seeing a clear shift in how organisations think about bespoke software. AI is making bespoke solutions more accessible than ever, and quicker to implement, allowing businesses of all sizes to create systems that are much more closely aligned to how they work.”

Advances in generative and agentic AI are accelerating development cycles, but the real opportunity lies in how these tools are applied. AI is enhancing, rather than replacing, the role of experienced developers.

Wil Jones, Technology & Solutions Director at Propel Tech, explains: “AI helps remove friction from the development process, but the real value comes from combining that capability with human expertise. It means we can focus more time on understanding the problem and designing the right solution. The outcome for clients is better systems that are more responsive, better integrated, and built to support smarter decision-making.”

The recent study also highlights the practical barriers organisations face when adopting AI. In the 2026 survey, 84.0% of respondents said that a drive to invest in AI had uncovered other issues across their business. The most frequently cited were data issues (29.0%), systems issues (28.6%), and cost issues (27.3%), followed by people issues (22.2%). This reinforces the view that AI adoption is acting as a diagnostic force, revealing weaknesses in core business infrastructure, integration, and organisational readiness.

These findings reinforce a key point: AI does not reduce the need for strong software foundations, it increases the importance of getting them right, alongside the growing need for expert developer understanding.

Andy Brown, Co-Founder of Propel Tech, adds: “What we’re seeing is a shift from software as a static tool to software as something that continuously adapts to the business. That creates significant opportunity, but it also requires the right structure underneath it. The organisations that we see succeeding quickest are those that take a considered approach, bringing together data, systems and expertise to build solutions that genuinely deliver value.”

As businesses face increasing disruption, they are looking to maximise the return on their technology investments. Bespoke, AI-enabled software is becoming a more accessible and strategic option, not only for large enterprises, but for businesses of all sizes seeking to improve performance and scalability.

This reflects a broader shift in mindset: away from a simple “build vs buy” decision, and towards designing the right combination of platforms and tailored systems to support long-term growth.

David Ritchie concludes: “The conversation is moving towards ‘what do we actually need, and how can we build it in the smartest way possible?’ AI is making that question far more achievable to answer.

“To support organisations at that stage, we’re offering a free AI readiness audit to assess systems, identify opportunities and help turn AI investment into practical outcomes.”

Notes to editors

  • Propel Tech is a UK-based software consultancy specialising in the design and development of tailored digital solutions.
  • The company supports organisations in modernising systems, improving performance, and unlocking value through scalable, AI-enabled technology.
  • The rise of AI-assisted development is expected to continue accelerating, increasing demand for more tailored, high-performing software solutions.
  • Insights and stats from Propel Tech’s 2026 software survey: https://propeltech.co.uk/unlock-the-future-ai-potential-of-software-development/

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