According to CNBC, Rightmove shares fell 5% immediately after CEO Johan Svanstrom announced that AI is becoming “absolutely central” to their business operations and future planning. The property portal giant is working on multiple AI-powered innovations using its “leading reach and connected data” to benefit partners and consumers. This market reaction contrasts sharply with how US investors typically welcome AI investment news, highlighting what British investors call “jam tomorrow” skepticism. The sell-off mirrored a similar 2004 incident when British Sky Broadcasting shares dropped 19% after James Murdoch announced major tech investments. Interestingly, Rightmove shares later rallied following broker notes suggesting they’d been oversold, but the initial reaction raises questions about how UK businesses will announce future AI investments.
The Stark Reality of UK’s AI Lag
Here’s the thing: UK companies are talking about AI constantly but actually doing very little. An analysis of 700 FTSE-100 reports found that 49% mention AI in their strategy, yet Matt Clifford, author of the UK government’s AI Opportunities Action Plan, delivered a brutal assessment. He told the Royal Television Society that UK firms are “the worst adopters of tech in the G7” despite our self-perception as being good at tech. His analogy was even more cutting: “AI is a bit like teenage sex—everyone’s talking about it but far fewer are actually doing it. And the people who boast about it the most are usually doing the least.” Ouch.
Why UK Companies Are Struggling
The numbers don’t lie. SAP’s report found the average UK company will invest just £15.94 million on AI this year, compared to £27.46 million for American firms and £31.59 million for Chinese companies. That’s a massive gap. And it’s not just about money—skills shortages are crippling implementation too. Only 34% of FTSE-100 companies and 18% of UK firms broadly even mention AI training in their reports. IBM’s recent research adds another layer: nearly two-thirds of organizations haven’t tapped AI’s full potential, mostly using it for basic productivity gains rather than transformative customer experience improvements. When it comes to industrial computing infrastructure needed for serious AI implementation, many UK firms simply aren’t making the necessary hardware investments that would position them for long-term success.
Some Companies Are Getting It Right
But it’s not all doom and gloom. Autotrader provides a textbook example of doing AI right. Their Co-Driver suite of AI tools has already been used by 10,000 customers to create over one million advertisements. They’re now launching Buying Signals, which uses consumer data to predict purchasing behavior. This is exactly the kind of innovative application that expands business capabilities rather than just cutting costs. The key difference? Autotrader is using AI to create new value, not just optimize existing processes. If Rightmove can follow this playbook—using AI to genuinely enhance their marketplace rather than just trim expenses—their initial stock dip might look like a buying opportunity in hindsight.
The Bigger Picture for UK Competitiveness
So where does this leave UK plc? Clifford warned of a “perfect storm” where financial services and life sciences get transformed by AI while UK firms lose market share to more aggressive international competitors. The initial Rightmove reaction suggests UK investors still need convincing that AI investments deliver returns. But here’s the reality: companies that wait too long risk being permanently left behind. The gap between AI talk and actual implementation is becoming a competitive chasm. UK businesses need to move beyond anxiety and start making serious investments, or they’ll find themselves watching from the sidelines as global competitors redefine entire industries.
