Technology is fast. What was once considered revolutionary and groundbreaking can become outdated and irrelevant in a matter of years.
For businesses, this creates constant pressure to adopt new technology to stay competitive. As a result, tensions may push them into adopting them without proper planning or implementation, leading to serious risks in the long run.
The most adopted technologies in 2024
According to statistics by Business Dasher, cloud technology and artificial intelligence (AI) are considered to be the top technologies that impact business positively. 50% of organisations believe cloud technology gives them a competitive advantage, while 44% think AI/machine learning will be advantageous.
Additionally, 98% of companies worldwide use cloud services, including software-as-a-service (Saas) applications and cloud-native networks. 67% also plan to increase their investments in cloud computing in the upcoming years.
AI adoption for UK businesses has seen an increase as well, with 68% of large companies using it compared to 15% of small businesses. The IT and legal sectors have embraced it the most, with 30% of organisations using it for everyday operations.
But despite AI’s evident popularity, many small businesses and small-medium enterprises (SMEs) don’t believe it will totally disrupt their industries. Our Startups 100 for 2025 survey revealed that 30% of UK businesses predict no disruption from AI, particularly from those in the Consulting and Services sector (70%), suggesting a high level of confidence in stability or less reliance on AI operational structures.
Technology tensions for businesses
Further research from the Startups survey found that a significant 82% of UK businesses are experiencing pressure to adopt emerging technologies, the majority of which (31%) reported feeling “moderate pressure” to do so.
Businesses in the technology and software industry reported high pressure (23%), given the highly competitive nature of the sector. Meanwhile, 22% of hospitality businesses also reported increased pressure. This suggests that the industry is facing urgent demands to adopt technologies to improve certain aspects, such as customer experience, online booking systems, personalised services and contactless payments.
Older businesses are feeling the strain too, with 22% of 4-year-old organisations reporting high pressure to adopt new technologies. This could boil down to these businesses reaching a critical point in their lifecycle where there’s a need to scale and integrate more advanced technologies to stay competitive.
The risks of adopting new technologies
Introducing new technologies to a business can be appealing. After all, it can help enhance the customer experience, improve business communications and provide valuable data to make informed decisions. However, it can come with serious risks if not planned or implemented properly.
Take AI as an example. In 2023 alone, 39% of UK businesses adopted it into their operations. However, over a third later reported that their AI projects had failed in the first 12 months. While there are several explanations for this, the pressure to adopt AI technology can play a significant role in intensifying the risks.
But what do businesses risk if they’re pushed into implementing new technologies? A few examples include:
- High costs: Adopting new technology often requires a large upfront investment. If a business jumps into this without proper planning, this can lead to a lot of financial strain and harm to its profit margins. Before making this commitment, businesses should first assess the return on investment (ROI) of the technology to determine how it aligns with business goals and operations.
- Resistance to change: Failing to properly communicate new technology can harm a company’s organisational culture, as it’ll cause a lot of disruption and disgruntled employees who may resist the change. To avoid this, businesses should openly communicate this change and the reasons for it, or consider training programs to get their workforce on board for a smooth transition.
- Security concerns: Customer data is paramount and if businesses fail to protect it, their reputation can become seriously tarnished. Moreover, if a new technology adoption doesn’t properly secure data, there’s the risk of breaching data regulations, such as the General Data Protection Regulation (GDPR). Any new technology implemented (e.g. a customer relationship management (CRM) system), should have robust security measures and adequately protect sensitive information.
Given the significant number of UK businesses reporting pressure to implement emerging technologies, this poses the risk of jumping into adoption, which can ultimately damage their stability. While innovation is important, businesses should remember that such a significant commitment shouldn’t be made for the sake of pressure. New technology must be planned carefully so that it can provide a suitable ROI and help businesses gain that all-important competitive edge.
