Artificial intelligence could generate more than £105 billion in additional revenue for the UK’s mid-sized companies by the end of the decade, according to new economic modelling that highlights how rapidly AI is reshaping the country’s business landscape.
The research, conducted by the Centre for Economics and Business Research (Cebr) on behalf of HSBC UK, suggests that businesses embedding AI across their operations are beginning to pull away from competitors that are slower to adopt the technology.
Alongside the report, HSBC UK has launched a £5 billion AI & Productivity Financing Initiative aimed at helping businesses invest in the technology, skills and systems required to deploy AI at scale.
The analysis focuses on Britain’s mid-sized businesses, companies with annual revenues between £15 million and £300 million, often described as the “engine room” of the UK economy because of their ability to combine the agility of smaller firms with the investment capacity of larger organisations.
There are around 35,000 such companies operating across the UK
In 2025 they generated 23 per cent more value per employee than the wider economy, highlighting their growing importance as a driver of productivity and growth.
The research indicates that AI is increasingly becoming a dividing line between firms that are accelerating ahead and those at risk of falling behind.
Two years ago, only around 35 per cent of mid-sized companies were using AI in some form. By the end of 2025 that figure had climbed sharply to 55 per cent, reflecting the rapid mainstream adoption of large language models, advanced analytics and workflow automation tools across many industries.
However, the report notes that a clear distinction exists between businesses experimenting with AI and those embedding it deeply within core business functions.
Approximately 24 per cent of mid-sized companies are now classified as “productive adopters”, organisations integrating AI into critical processes such as forecasting, supply chain management, reporting, customer engagement and operational decision-making.
These companies are seeing measurable improvements in both productivity and revenue.
According to the research, firms that integrate AI into their operations experience an average increase of around four per cent in revenue per employee.
For the typical mid-sized business, this could translate into an additional £4.5 million in revenue and roughly £1.3 million in additional economic value within four years compared with companies that have not yet adopted the technology.
If adoption continues at its current pace, the cumulative impact could be significant. The modelling suggests AI-driven productivity gains across the mid-market could add £105 billion in additional revenue and £31 billion in economic output to the UK economy by 2030.
Looking further ahead, the study estimates that AI adoption among mid-sized firms could generate more than £500 billion in additional turnover by 2050, although gains are expected to slow as the technology becomes widely embedded across industries.
James Cundy, managing director and head of corporate and leveraged finance at HSBC UK, said the findings highlight the growing importance of AI investment for business competitiveness.
“Mid-sized businesses play a central role in UK growth,” he said. “Our findings suggest AI adoption could strengthen one of the economy’s most important growth engines.
“The opportunity is significant, but it requires confidence to invest
Our focus is on supporting businesses as they invest in the technology, skills and innovation that will shape the UK’s next phase of growth.”
Through the new financing initiative, HSBC aims to provide businesses with access to funding on commercial terms to support AI investment across areas including digital infrastructure, data systems, workforce training and automation.
Cundy emphasised that the biggest gains are coming from companies that move beyond experimentation and integrate AI into their decision-making and operational processes.
“The distinction between experimentation and integration is critical,” he said. “Businesses that apply AI to operations, workforce processes and strategic decisions are seeing measurable improvements in productivity and revenue.”
Economists say the research underlines the growing role of technology in shaping productivity outcomes across the UK economy.
Nina Skero, chief executive of the Centre for Economics and Business Research, said the findings suggest the mid-market still has considerable room to benefit from AI-driven productivity improvements.
“Our research shows AI is already beginning to influence productivity outcomes among mid-sized firms in a meaningful way,” she said.
“However, productive adopters remain a minority within the mid-market. That indicates there is still significant headroom for growth. If more companies move from early adoption to deeper integration, the combined impact on UK productivity and national output could be substantial by the end of the decade.”
The report concludes that the pace at which companies move from experimentation to full integration will ultimately determine how much of the potential £105 billion opportunity is realised.
