UK businesses are doubling down on innovation as a way of driving growth, with over three-quarters (76 per cent) investing in new approaches to meet evolving customer expectations, according to new research from American Express.
The findings of the Amex European Business Barometer highlight a strong thread of resilience as companies adapt their business models. The research, which polled 500 senior decision-makers at consumer-facing companies in the UK, as well as in four European countries, also found that two thirds (65 per cent) expect to grow over the next 12 months, despite competitive and operational pressures.
The push to innovate and gain competitive advantage is centred on three key focuses: artificial intelligence (AI), social commerce and payments.
AI adoption is rapidly becoming the norm, with 92 per cent of UK businesses already using it or planning to within two years. As a result, how companies make decisions and engage customers is evolving fast. Looking ahead, improving insights through data and analytics, and enhancing customer service top the list of planned AI uses over the next two years.
Agentic AI – where agents autonomously make decisions and take actions with minimal human intervention – is set to gain momentum. Almost seven in ten (69 per cent) businesses believe early adoption of Agentic AI will provide a competitive edge, and a third (33 per cent) see this as a major opportunity for their business in the next 12 months.
However, businesses are mindful of the impact AI will have on their operations; significantly, 71 per cent of the UK firms surveyed believe long-term business success will come from combining AI with human insight to win customer trust.
Almost half (48 per cent) of businesses surveyed now rank social media as their most important sales and marketing channel – overtaking owned websites, email and paid search – signalling a major shift in how brands reach customers. Over a third (36 per cent) of UK businesses plan to invest in social selling to drive sales over the next 12 months, the highest figure among all countries surveyed.
Businesses also see social media as a vital tool for boosting customer loyalty; 31 per cent plan to leverage their social channels as a way of building online communities over the next 12 months, second only to prioritising staff training as a way of improving customer experience.
Payment flexibility is no longer a nice-to-have; eight in ten (79 per cent) businesses acknowledge they lose sales if customers can’t use their preferred payment method – making checkout experience a direct driver of revenue. Over a quarter (28 per cent) of UK businesses plan to invest in improving their payment or checkout or experience over the next year, the joint-highest among all countries surveyed alongside Italy.
Specifically, firms are prioritising investment in offering a broader choice of payment options, including open banking (54 per cent), expanding digital wallets (52 per cent) and improving checkout speed (46 per cent).
Dan Edelman, UK General Manager, Merchant Services, at American Express, said: “UK businesses are demonstrating their continued resilience by making a clear bet on innovation as a route to growth. Whether it’s AI, social commerce or payments, the common thread is meeting customers where they are – and exceeding their expectations.
“Those that combine new technology with human insight will be best placed to stand out in an increasingly competitive landscape. With more places than ever before accepting American Express in the UK, we’re helping businesses adapt to changing consumer behaviour and create experiences that drive loyalty.”
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