Lord Wolfson of Aspley Guise, chief executive of the retailer Next, has highlighted the transformative potential of artificial intelligence (AI) for businesses and the broader UK economy. Speaking following Next’s half-year financial results, Wolfson emphasized the technology’s ability not only to cut costs but also to enable new growth opportunities.

Next, a major retailer headquartered near Leicester, has been exploring the use of agentic AI—software capable of autonomous task execution rather than merely assisting humans. The company recently demonstrated this by having an AI agent develop software code in just over 24 minutes, a task that would require approximately 11 working days for a human programmer. Although accounting for time invested in building and training the AI, Next estimates an overall time saving of around 17 percent, with ambitions to improve this to 30 percent as the technology matures and becomes more reusable.

Wolfson pointed to the significant economic implications of such efficiencies. Cost savings in operational areas like warehousing or office administration can be redirected toward marketing and growth initiatives. He also noted that previously prohibitive projects, such as modernizing Next’s central mainframe IT system, could become viable thanks to AI. The company now expects to complete this upgrade for under £10 million and within two and a half years, a marked reduction from the original estimate of £50 million and several years, which would enhance operational effectiveness company-wide.

The potential for AI to spur economic growth is reflected in recent macroeconomic analysis. The International Monetary Fund (IMF) upgraded the UK’s forecasted GDP growth for 2026 from 0.8 percent to 1.3 percent, attributing the revision in part to increased investment in software, data centers, and productivity gains tied to AI applications. If realized, this would position the UK as the joint-second fastest-growing economy among G7 nations.

Research by Apollo, a fund management firm, and others observes a divergence in how AI is being developed and adopted internationally. The United States remains a leader in AI innovation, including development of new models and patent filings, while many European countries, including the UK, excel in AI adoption and diffusion. In fact, the UK reportedly surpasses the US in the share of jobs mentioning AI skills and in the economic utilization of AI products. This is supported by venture capital activity: UK firms attracted a record $6.9 billion in funding in the third quarter of 2026, with roughly 79 percent of such investment linked to AI ventures, the highest proportion outside the US.

While some have expressed concern regarding the exposure of certain London-based professions—particularly in financial and professional services—to AI-driven disruption, others view it as an opportunity. Industry leaders argue London’s high concentration of AI-relevant roles positions the city to capture significant growth from AI-enabled innovations.

Nonetheless, uncertainties remain. The IMF cautions about potential asset price corrections related to speculation around AI, and there are broader questions concerning the sustainability of AI investments, especially given the substantial expenses by large technology firms on data centers. Apollo estimates annual spending on AI infrastructure in the US has reached nearly 2 percent of GDP, constituting one of the largest infrastructure expansions in history. There are also ongoing debates about the safety and ethical implications of AI deployment.

Despite these challenges, the UK appears to be adopting a capital-efficient approach to AI: leveraging advancements driven by US-based companies while focusing on practical implementation and productivity enhancements domestically. This strategy may position the UK to benefit from AI’s economic potential without incurring the massive development costs seen elsewhere.