Growth Optimism vs. AI Reality: UK Software Firms Struggle to Monetize AI
London, 25 September 2025: UK software vendors are bullish on growth, but a new study by Simon-Kucher reveals the reality: while three-quarters have launched AI features, more than half report revenue uplifts of less than 5%. Despite 90% of UK vendors expecting growth in 2025, AI is failing to deliver on its commercial promise.
“The challenge isn’t innovation, it’s execution,” said Rory Sweeney, Partner at Simon-Kucher. “Software leaders don’t need more features - they need to prove impact, simplify pricing, and make adoption effortless. Firms that close this gap will define the next decade of the industry.”
Key Findings
- AI everywhere, revenue nowhere: 78% of UK software firms have launched AI features, yet 53% saw revenue uplifts under 5%. Expectations were for 15–20% growth just two years ago - highlighting how hard it is to turn AI into income
- Growth engine misaligned: The best performers (net revenue retention above 130%) are investing in onboarding, lifecycle marketing, and churn prediction. Yet most firms still reward sales teams alone, overlooking customer success, marketing and growth teams - leaving future growth exposed
- Buyers ready to spend, but tougher to win: Budgets are rising, but buying decisions are harder. 80% of UK purchases are now decided collaboratively across functions, and opaque pricing, hidden costs, and vague AI promises are top deal-killers - pushing vendors to simplify and sharpen their pitch
- Adoption bottleneck: ROI depends on usage, not just features: 83% of UK buyers plan to implement AI and 3/4 already use third-party tools. But concerns over usability and measurable outcomes stall uptake. Vendors must invest in onboarding and customer success to ensure AI features are used and deliver monetizable value
- Optimism high, pressure rising: 90% of UK vendors forecast revenue growth in 2025 and buyers expect software budgets to rise 7% over two years. But higher spend comes with higher scrutiny - vendors must prove real impact to justify higher spend
Bridging the Disconnect
The study makes clear that software vendors must close the gap with their buyers. To succeed in 2025 and beyond, software vendors should focus on three imperatives:
- Prioritise adoption, not just sales: Invest as much in onboarding and customer success as in feature development
- Price for value and simplicity: Align pricing with delivered value, but keep models simple and predictable
- Reward the full customer journey: Reward all teams that deliver value and drive retention, not only those who close the initial deal
“AI hype doesn’t pay the bills - execution does. The winners won’t be those with the most AI features, but those who make it easiest for buyers to adopt and feel the value” said Rory Sweeney, Partner at Simon-Kucher.
Complete study findings are available upon request.
About the Study: Simon-Kucher’s 2025 Global Software Study draws on responses from 516 B2B software executives and 161 software buyers.
Rory Sweeney
Email: Rory.Sweeney@simon-kucher.com
Janine McCormac
Email: Janine.Mccormac@simon-kucher.com
About Simon-Kucher
Simon-Kucher is a global consultancy with more than 2,000 employees in 31 countries. Our sole focus is on unlocking better growth that drives measurable revenue and profit for our clients. We achieve this by optimizing every lever of their commercial strategy - product, price, innovation, marketing, and sales - based on deep insights into what customers want and value. With 40 years of experience in monetization topics of all kinds, we are regarded as the world’s leading pricing and growth specialist.