Mid-market businesses positive about AI investment returns

Mid-market businesses are feeling overwhelmingly optimistic when it comes to their near-term investment in artificial intelligence (AI), according to new research from BDO, the accountancy and business advisory firm.

The bi-monthly survey of 500 mid-market businesses revealed that the majority (97%) said they expect to see a return on their investment in AI within the next one to four years.

BDO’s survey indicates that this cohort are confident about AI and its benefits, with more than one in five (22%) having invested between £1.01m and £5m in AI tools to date. Nearly half of those polled (44%) said they had already invested between £500.01k and £1m, with around a third investing between £100k and £500k.

Despite comprising less than one per cent of British businesses, the mid-market has an outsized role in the UK economy, accounting for one in three private sector jobs and with revenues equivalent to more than half the value of UK GDP.

Catherine Wilks, a partner at BDO who helps organisations to implement AI solutions said:

“Mid-market businesses are often hugely innovative and ambitious. It is positive to see that many have already embarked on their own AI journey and are confident that they will get a return on their investment in the short to medium term.

“A lot of companies are likely prioritising internal use cases such as personal productivity tools and back-office automation but there are potentially many more options to explore in areas such as generative AI, chatbots, speeding up financial reporting processes and fixing fragmented workflows, these could offer even greater efficiencies and higher ROI.

“One significant barrier to taking advantage of AI tools can be a lack of skills, capability or capacity. In many organisations, particularly those at the smaller end of the mid-market, there is often no dedicated in-house expertise to lead AI initiatives, which means businesses need external support to get started. We also know businesses are facing major challenges around access to talent and there will be huge competition to attract people with skills in these areas.

“We are also seeing a varying pace of adoption between sectors. While professional services and retailers are among the industries really ramping up AI use both for internal and client facing processes, other sectors risk being left behind.”

To further encourage the mid-market's adoption of AI, BDO is recommending the Government consider the introduction of incentives such as tax credits and enhanced tax relief for AI-related investment on tools, integration and training as well as grants for projects that are proven to improve productivity.

ENDS

Note to editors

BDO’s survey of 500 mid-market businesses with revenues of £10-£500m was undertaken between 16 February and 3 March 2026.

BDO UK operates in 17 offices across the UK, employing 8,000 people. It has UK revenues of £1bn.

It provides Audit, Tax, Deals, and Consulting, Risk & Outsourcing services predominantly to the entrepreneurial, ambitious and growing mid-sized businesses that are driving growth in the UK economy. BDO calls this segment of the market the UK’s economic engine.

BDO LLP is the UK member firm of the BDO international network.

BDO’s global network

The BDO global network provides business advisory services in 169 countries and territories, with 95,000 people working out of 870 offices worldwide. It has revenues of US$11bn.

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PR Manager, BDO UK
Email: Lianne.rimmer@bdo.co.uk

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