The UK’s opportunity to seize growth in the age of agentic AI

This blog is part of the AI worldwide tour series, which highlights customers from around the globe who are embracing AI to achieve more. Read about how customers are using responsible AI to drive social impact and business transformation with Global AI innovation.

The United Kingdom (UK) is on the brink of a half-a-trillion-pound opportunity, powered by AI and cloud technologies that are set to transform industries, boost productivity, and redefine the way we work. As Europe’s most advanced digital economy, home to 171 unicorns worth more than £800 billion, the UK has already proven its appetite for innovation, investing more than £20 billion in AI since 2016. But realizing AI’s full potential isn’t just about investment, it’s about action.

AI is no longer a distant concept. Businesses across every sector are already embedding AI-powered agents into their operations—automating workflows, streamlining decision-making, and eliminating digital drudgery to free employees for more impactful work. The rise of agentic AI—technology that doesn’t just respond to commands but takes action on our behalf—marks a major shift, poised to revolutionize everything from customer service to cybersecurity, driving efficiency, resilience, and innovation at scale.

And yet, a stark AI divide is emerging. More than half of UK organizations still lack a formal AI strategy, and 57% of business leaders report a growing gap in productivity between AI adopters and non-adopters. With employees and leaders already stretched thin, the demand for AI-powered solutions has never been more pressing.

The question is no longer whether AI will reshape the UK economy, but how quickly businesses will step up to seize the opportunity. Organizations that act decisively—building clear AI strategies and investing in the right capabilities—will be the ones that thrive. I highlighted several of these leading organizations during my AI Tour keynote, and I’m excited to share more of their journeys here.

Pets at Home reimagines integrated pet care with AI

Pets at Home, the UK’s largest pet care company, is transforming its operations with AI agents powered by Microsoft Copilot Studio. The company, which includes 450 retail stores, an online platform, veterinary practices, and grooming services, initially operated in silos but underwent a digital transformation to unify the customer experience across all channels using Microsoft Azure.

With a centralized data platform in place, Pets at Home turned to AI to enhance efficiency. One of the first AI agents supported fraud detection, swiftly analyzing vast amounts of data to identify suspicious transactions, such as repeated use of the same image for fraudulent refund claims. This has significantly improved fraud investigation speed and accuracy.

AI is also powering personalized customer interactions. With 8 million loyalty program members and 10 million pets, the company uses machine learning to recommend tailored pet care solutions across its retail, veterinary, and grooming services. This ensures customers receive relevant, stage-specific pet care guidance.

The company’s veterinary practices are using AI to reduce administrative tasks, allowing clinicians to focus more on patient care. AI-powered transcription services assist during consultations and operations, while scheduling automation improves efficiency, enhancing clinical focus, and aligning with the company’s mission of better pet care.

By integrating AI agents, Pets at Home has enhanced fraud detection, improved personalization, and streamlined veterinary operations, driving innovation and efficiency across its ecosystem.

Amey embraces AI agents for a safer, more connected workforce

Amey, a UK-based engineering firm, plays a vital role in designing, maintaining, operating, and building the country’s infrastructure. With services impacting 75% of the UK population daily, ensuring safety and efficiency is a top priority.

Access to safety information has long been a challenge for frontline workers, who previously had to stop tasks and manually sift through folders full of paper documents for relevant details. Without regular access to laptops or computers, Amey opted to democratize information access for its workforce with mobile-friendly AI-powered agents.

Now, 99% of its 118 million files are stored on SharePoint, and AI allows employees to retrieve answers instantly through a chat interface. No more digging through folders—critical safety information is now just a few taps away, preventing issues and resolving others faster.

The AI system boosts efficiency and safety by providing instant access to essential information, real-time troubleshooting, and multilingual support while maintaining English documentation. By filling gaps where supervisors aren’t always available, it reduces risks and empowers employees to work more confidently and get home safely every day.

With AI now embedded in everyday operations, Amey is setting new standards for workplace safety and efficiency, proving that technology is a powerful ally in protecting and empowering its workforce.

Nationwide streamlines operations and cuts response times with generative AI

Nationwide, the world’s largest building society, serves 17 million customers across more than 600 UK branches. After merging with around 250 smaller societies, it faced a tangled web of data. By applying Microsoft Azure, Azure Databricks, and Teradata’s VantageCloud, it streamlined everything into a powerful, centralized platform, empowering employees to access a complete view of customer needs in seconds, delivering faster, more personalized service with greater efficiency.

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Nationwide has built upon that infrastructure by integrating GPT-4 within Azure OpenAI Service to augment various business functions. One of the most impactful applications has been in customer correspondence, where AI-generated letters have reduced response times from 45 minutes to approximately 10–15 minutes, a 66% improvement in efficiency. AI has also been deployed to automate routine back-office tasks, allowing employees to focus on addressing more complex customer inquiries and improving overall service quality, which reflects Nationwide’s philosophy of using AI as a “copilot” to assist employees rather than as an “autopilot” to replace them.

Nationwide has established an AI Centre of Expertise and an AI Council to oversee responsible AI use, ensuring transparency and responsible standards in collaboration with Microsoft. This framework builds customer trust while guiding the expansion of AI into contact center operations, credit risk assessment, economic crime monitoring, its virtual assistant Arti, and CO₂ emissions reporting.

Be My Eyes has long connected blind and low-vision people with sighted volunteers and partner companies through live video assistance. Now, with AI, it’s radically improving accessibility. In collaboration with Microsoft, Be My Eyes is making AI models more inclusive for the 340 million people worldwide with no or low vision by integrating accessibility data to serve diverse needs better.

A key innovation is Be My AI, a tool that helps users independently navigate their digital world by providing AI-powered descriptions of on-screen content. Part of Be My Eyes for Windows, Be My AI makes it easier to browse websites, use applications, or read documents. It also provides descriptions of locally stored images, offering clarity on personal photos and saved graphics. Online images can be analyzed simply by copying them to the clipboard for a detailed text description. The tool even helps users prepare for video calls by checking if they are centered in the frame and describing their background before going live.

An interactive chatbot allows users to ask follow-up questions about descriptions for a more dynamic and personalized experience. While the app is still in beta, ongoing improvements and new features will continue to expand its capabilities, allowing Be My Eyes to improve accessibility and redefine independence for blind and low-vision people.

Virgin Money’s virtual assistant is “Redi” to transform customer service

Virgin Money, serving 6.6 million retail and business banking customers, sought to enhance digital customer experience by developing “Redi,” an award-winning virtual assistant. Built using Microsoft Copilot Studio and integrated with Dynamics 365 Customer Service, Redi bridges the gap between digital adoption and customer confidence.

Developed in close collaboration with frontline contact center staff and seamlessly integrated with the Dynamics 365 Knowledge Base, Redi features an intuitive digital journey that provides customers with timely and effective assistance. A core value to the company, the virtual assistant maintains Virgin Money’s distinctive brand voice, understanding colloquialisms and responding to informal language.

Virgin Money collaborated with compliance teams to ensure Redi’s interactions are clear and secure. The assistant introduces itself transparently and seamlessly transitions customers to human agents when handling complex issues, effectively triaging 90% of inquiries, boosting customer satisfaction ratings, and allowing contact center agents to focus on more complex tasks.

This strategic AI deployment exemplifies Virgin Money’s commitment to exceptional customer experience and recognition that the major role of agentic AI has in delivering that now and into the future.

AI for everyone in the UK: Decisive action

The UK’s AI journey has already been transformative, but the next era—powered by agentic AI—has the potential to be truly revolutionary. By and large, UK organizations recognize the competitive advantage AI has to offer, but have yet to fully unlock AI’s potential, citing barriers such as workforce readiness, strategic alignment, and regulatory uncertainty.

Overcoming these hurdles is challenging but certainly achievable. It requires investment not only in AI infrastructure but also in skills development. Microsoft has stepped in with full support for the UK economy, having made a multibillion-pound commitment to AI-enabled datacenters and bringing AI skills to an additional 1 million people by the end of this year, on top of the 1.5 million it has already given digital skills to.

This shared foundation is essential to putting the AI-powered economy within reach, but success will depend on how quickly and effectively businesses themselves take strategic steps to embrace AI. I posed these questions to those who attended the Microsoft AI Tour event in London, and I urge you to consider them as well:

What are you trying to achieve in the next six months, and how can AI help you get there faster?

How are you and your team set up to embrace the change, and what culture shifts are needed to ensure AI adoption is unencumbered?
How can Microsoft and its partners be part of that journey? What do you need from us to accelerate your progress and deliver real outcomes?

Together, we have the opportunity to shape an AI-powered future where businesses flourish, employees thrive, and the UK cements its position as a global leader in innovation. The time to act is now.