MARKET INSIGHTS
7 Growth Challenges for
UK Tech Businesses in 2026

From AI value realisation to scaling ambition gaps, these aren’t future trends – they’re happening now.

AI Value Realisation

AI is everywhere – from product features to pitch decks – but for most UK tech firms, the returns still haven’t landed. Adoption is high, yet operational value remains elusive.

Cybersecurity & Data Risk

Cyber attacks on UK mid-market tech firms are rising fast – and pressure to prove data resilience is coming from customers, investors, and procurement teams alike.

Talent Scarcity in AI, Data & Security

The fight for AI, data, and security talent is fierce. Roles stay open for months, contractors are overbooked, and team churn is becoming the new norm.

Technical Debt & Sluggish Execution

Fast-growing UK tech firms are hitting bottlenecks from rushed build-outs, disconnected systems, and mounting layers of manual fixes. AI isn’t landing because the foundations aren’t ready.

Operating Model & Regulatory Complexity

Post-Brexit rules, AI governance shifts, and patchy infrastructure are creating layers of friction – especially for firms trying to scale beyond founder-led operations.

Scaling Ambition vs Growth Reality

UK tech firms are innovating – but too many stall before they scale. Capital is cautious, talent is thin, and operating confidence isn’t keeping up with vision.

Intense Market Competition

The market is flooded with noise – AI-tagged features, buzzword branding, and hyperspeed product cycles. Standing out is harder, and trust is scarcer.

How is your business gearing up to meet these challenges?

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