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AI use in UK hits ‘tipping point’ as companies scale up, Google exec says

By Thomson Reuters Jun 17, 2026 | 6:14 AM

By Sam Tabahriti

LONDON, June 17 (Reuters) – Adoption of artificial intelligence has reached a “tipping point” in Britain, as companies move from experimentation to large-scale deployment and start seeing ​returns, a Google Cloud executive said on Wednesday.

Businesses and ‌government bodies that were testing AI tools a year ago are now using them to run more complex processes and improve productivity, Maureen Costello, Google Cloud’s vice president for the United Kingdom, Ireland and Sub-Saharan ‌Africa, ​told Reuters in an interview.

“Industry is on ⁠the cusp of a ⁠tipping point where AI adoption is accelerating quickly,” Costello said. “A year ago the focus was on experimentation, but now we’re seeing organisations put AI into production and begin to ​realise real returns.”

The shift is evident across sectors from retail to government, she said, citing examples such as AI-powered shopping ⁠tools from British e-commerce firm THG ⁠that have boosted customer spending, and public-sector systems ​helping to speed up planning decisions.

London, home to Europe’s largest ​concentration of tech talent, is seeking to cement its ‌position as a global AI hub, with Prime Minister Keir Starmer pushing to position Britain as an AI “superpower”.

Costello said Britain was “leading in this space”, pointing to a strong research base and ⁠institutions such as Google DeepMind in London.

Broader adoption could deliver significant gains for smaller firms, she added, with Google research suggesting that AI ⁠could boost productivity ‌by about 20%, effectively giving business owners “a ⁠day back” each week.

However, the pace of AI ​adoption ‌will depend on investment in skills, leadership ​engagement and trust, ⁠particularly around security and data sovereignty.

“Technology is only half of the answer — people are the other half,” Costello said. “Leaders can’t sleep at the wheel, they need to get hands-on and understand how to apply this in their organisations.”

(Reporting by Sam Tabahriti, editing ​by Milla Nissi-Prussak)