Technology Industry Outlook 2026

Every transformative technology brings with it the good, the bad and the unknown. AI is no exception. The AI revolution is fuelling confidence and driving significant investment into UK tech, but it’s also introducing new challenges for employers, with the full scale of disruption yet to unfold. Against this backdrop of an industry reshaping itself around AI, our annual survey of tech leaders explores the impacts and issues businesses are navigating as the sector sets its sights on dynamic growth, with commentary from our experts advising tech business leaders where to focus in 2026.

2025 has been a dynamic year for the UK tech sector. New tech incorporations are soaring, the UK’s AI adoption is in full swing, and the ambitious UK-US tech deal announced billions of pounds of investment over the coming years.

In summer 2025, RSM UK surveyed 300 tech business leaders, asking about the mood in the industry, where they are focusing their resource and where they are finding challenges. Our sample included mid-market businesses from across the UK, and 100 from the market in Ireland, and from sub sectors including AI and software.

Driving UK tech growth

AI is acting as the main driver of growth and innovation for UK tech businesses. Our survey results show that financial investment incentives are seen as the most critical factor for the UK achieving it’s goal to be a global leader in AI. While the Technology Prosperity Deal promises key infrastructure, further steps are needed to cut barriers, attract talent and boost overseas investment to fully capitalise on the AI-driven revolution.

Read more about the future of AI in our report

Optimism improving for 2026

Funding continues to be a barrier for UK technology businesses. Just 26% of those we surveyed reported being easily able to access funds. While funding is a vital catalyst for growth and innovation, many companies still face obstacles, highlighting the ongoing economic uncertainty and tough market conditions. But conditions are improving.

Read more about the technology funding landscape in our report

Transatlantic momentum

The unexpected but entirely welcome Technology Prosperity Deal marked a pivotal moment in transatlantic tech collaboration. Against a backdrop of continued economic uncertainty, 86% of the businesses we surveyed told us they are enthusiastic about doing business in the United States.

RSM UK, like so many UK tech businesses, are looking across the pond. In October 2025 RSM UK and RSM US announced approved plans to create a transatlantic partnership, ensuring we can provide a seamless service to the clients operating in both markets or those looking to expand.

Read more about UK and the US in our full report

Fuel for innovation

98% of the tech businesses we surveyed submitted an R&D claim in the last 12 months. The R&D scheme is a vital lifeline for many tech businesses in the UK and encouragingly we found an improved approval rate compared to when we asked in 2024. However, further refinements are needed for the UK to remain an attractive place for tech businesses to thrive.

Explore in depth about R&D in our full report

Future of working in tech

Workforce challenges continue to weigh on the technology sector. Layoffs and restructuring have become common headlines, even as AI drives unprecedented growth and innovation. The same technology fuelling progress is also cited as the leading reason for headcount reductions, as automation reshapes roles and skills. In this shifting landscape, the critical question is: how do we build and sustain a stable, engaged workforce while embracing the transformative power of AI?

Explore more about workforce challenges in our full report

Access our Technology Industry Outlook 2026 report