Azets Barometer: UK businesses prioritising action amid unpredictability
For UK businesses, the past few years have been relentless. From discussions with our clients, we know that ongoing challenges such as rising labour costs, unwelcome tax burdens and complexities of AI integration have placed pressure on leadership team.
To understand current sentiment among UK businesses and strategic priorities amid an uncertain landscape, we spoke to 492 business leaders as part of our latest Azets Barometer. Overall, behind concerns about current challenges, we saw a cautious optimism and a different approach to staying resilient under pressure.
Agile leaders lean in to tough times
Following Brexit and the COVID-19 pandemic, the UK economy has experienced periods of reduced economic investment. Cash-strapped businesses dealing with the disruption and long-term changes ushered in by these events have naturally reacted by delaying or reducing investments (ONS).
However, some of the hard‑won lessons of recent years are now shaping leadership behaviour. One of the clearest is the growing recognition that speed matters. Business leaders increasingly understand the value of swift, decisive action when navigating uncertainty.
This new emphasis marks a shift away from a ‘batten down the hatches’ approach. In its place is a rising focus on operational agility and leadership capability. Businesses are navigating a tough market, fierce competition and rapid technological change - making adaptability essential. For many, there’s no choice but to invest in innovation and new technology.
Technology adoption becomes a competitive priority
Business leaders are acutely aware of the next wave in digital transformation and they’re increasingly committed to making it happen. In the Q1 2026 Azets Barometer, we asked leaders to identify those areas they expected to see the greatest change in over the next 12 months. Digitalisation and automation, including AI tools, topped the list.
AI adoption is gaining momentum, with 36% of UK respondents in the advanced stages and 37% in the early stages. While this highlights growing commitment, it also points to a maturity gap. Many organisations are still experimenting rather than embedding AI at scale, suggesting significant untapped potential for those able to move faster.
Right now, the business climate favours those who stay agile and embrace change. Smaller businesses have a potential advantage here. They can manage costs while quickly adapting to new ideas - a balance that larger, more complex organisations can struggle to achieve.
Peter Gallanagh, Azets UK CEO, commented:
“In the past, weathering an economic storm meant hoarding cash and battening down the hatches. Today, the most successful leaders are telling us a different story. They are prioritising operational agility and leadership capability above all else. They are realising that you cannot simply save your way to growth; you have to innovate your way there.”
Resilient businesses today: Quick and decisive beats holding cash
This mindset is reflected in the data. When asked which factors are most critical to organisational resilience, UK leaders rated the ability to move quickly and make decisions above more traditional measures such as maintaining cash reserves or access to finance.
The second indicator was in openness to foreign investment. Almost half (44%) of UK business owners expressed willingness to accept investment from non-UK businesses to fuel growth. This highlights increasing openness to alternative sources of capital at a time when access to finance remains challenging.
Overall, the findings suggest that, despite economic and geopolitical headwinds remaining, UK business leaders are displaying cautious optimism. Many are backing themselves to adapt, invest and transform their organisations into leaner, more agile and more innovative businesses – positioned not just to survive but to thrive.
Peter Gallanagh added:
“We’re seeing some key metrics on the macroeconomic environment improving, and hopefully they will continue to improve, but that is compounded by all the wonderful work that SMEs do to ensure they're super resilient through these difficult periods.”
Explore all the findings in the Q1 2026 Azets Barometer Dashboard or download the Azets Barometer Report.
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