Business & Technology
Transport & storage firms boost AI use by 11 points
UK transport and storage companies are increasing their use of artificial intelligence, with new Office for National Statistics survey data showing adoption in the sector has risen by 11 percentage points since December.
The figures show 27.1% of businesses in the category, which includes logistics, parcels, haulage and warehousing, now use AI in some part of their operations. That means 72.9% still do not use the technology, down sharply from 83.9% at the end of last year.
Parcelhero said the data points to a rapid shift in attitudes across the sector as operators test where AI fits into day-to-day business tasks. Compared with other industries, transport and storage does not appear notably behind similar parts of the economy in adopting the technology.
Manufacturing recorded the same share of businesses not yet using AI, at 72.9%, while retail was slightly further ahead, with 67.7% yet to adopt it. This leaves transport and storage broadly in line with sectors facing similar pressures around cost control, service delivery and administration.
Current uses
Among transport and storage companies already using AI, the most common application is improving business operations. Survey figures cited by Parcelhero show 29.8% of adopters use AI for that purpose.
A smaller group, 15.7%, uses the technology to provide or personalise products or services, while 10.2% say it is helping them explore new markets.
The data also highlights where businesses say AI is changing work inside their organisations. The roles most affected so far are data analysis, cited by 16.4% of respondents, followed by administration at 11.3% and creative or design roles at 11%.
Training is already part of that adjustment, with 28.5% of transport and storage firms using AI saying they are training or retraining existing staff in the technology.
On staffing levels, the survey does not suggest widespread cuts linked to AI adoption in the sector. Among businesses already using the technology, 31.3% said there would be no change in workforce numbers, while the share saying AI would definitely reduce headcount was too small to register in the published figures.
Investment choices
The figures show no single dominant model for deploying AI. Some businesses are building their own tools, while others rely on bought-in or free software.
Among companies in the sector that have already adopted AI, 12.4% said they had developed AI programs in-house. A slightly larger 13.3% said they had purchased external software or ready-to-use solutions, while 12.6% said they were using free software.
The split suggests an early-stage market in which companies are still weighing cost, control and ease of implementation. For operators with limited internal technical resources, ready-made products may offer a quicker route, while larger groups may prefer systems tailored more closely to internal processes.
Next steps
The survey suggests more investment is likely in the near term, with many businesses planning to expand AI use over the next three months. The focus remains on internal operations rather than more ambitious transformation projects.
Some 20.6% of respondents said they planned to use AI to improve business operations. Another 12% said they intended to adopt it to develop a new product or service, while 10.3% planned to use it to provide products or services for customers.
Reservations remain, however, among both adopters and non-adopters. Of the companies already using AI, 11.8% said they were concerned about the level of adequate business knowledge surrounding the technology within their organisation, 11.5% cited ease of use and 5.4% pointed to affordability.
Among businesses that have not yet introduced AI, 4.9% said cost was the main reason for holding back. A further 3.6% said they had difficulty identifying a business use case.
David Jinks, Head of Consumer Research at Parcelhero, said the latest figures show a marked change in uptake.
“The number of transport & storage firms now reporting they are making use of AI is still surprisingly small: 72.9% admit they are not yet using it. However, there has been a sharp jump in uptake since last December, when a frankly shocking 83.9% of transport & storage firms said they weren’t using the technology. In other words, 27.1% of companies in the sector are now using AI, an increase of 11 percentage points.
“Incidentally, that 72.9% of transport & storage sector firms not yet using AI is exactly the same as the number of manufacturing sector companies that haven’t yet adopted the technology, and only slightly more than the 67.7% of retailers yet to take the plunge. That means transport & storage firms are not lagging notably behind equivalent sectors in their uptake of AI.
“The data gives a fascinating insight into the areas transport & storage businesses are focusing their AI use on, what impact they think it will have on their business, and where they see their AI investment focusing in the future.
“29.8% of transport & storage companies that have adopted AI say they are using it to improve business operations, 15.7% are using it to provide or personalise products or services, and 10.2% to explore new markets.
“Of course, adopting AI has an impact on businesses in terms of training and work practices. Some 28.5% of firms in the sector are training or retraining their existing staff in the use of AI. Contrary to recent headlines from some industries, it does not look as if the increased use of AI in transport & storage will lead to reduced headcount. In all, 31.3% of companies now adopting AI said there would be no change in workforce numbers, and the number reporting that it would definitely reduce headcount was so small it did not register in the figures.
“Predictably, the roles transport & storage companies said have been most affected are data analysis (16.4%), admin (11.3%) and creative/design roles (11%).
“Whether to develop AI in-house or outsource or use off-the-peg AI solutions is a question many companies have been considering. Some 12.4% of transport & storage businesses that have already adopted AI say they have developed AI programs in-house, while 13.3% have purchased external software or ready-to-use solutions and 12.6% are using free software.
“Many more transport & storage companies are planning to adopt AI technologies in the next three months. Some 20.6% plan to use it to improve business operations, 12% plan to adopt it to develop a new product or service, and 10.3% to provide products or services for their customers.
“However, a number of companies in the sector still reported reservations about the new technology. Of those already using it, 11.8% are concerned about the level of adequate business knowledge surrounding AI within their organisation, 11.5% about its ease of use and 5.4% about its affordability.
“For companies that have not yet adopted AI, 4.9% said cost was the main reason they have not yet taken the plunge, while 3.6% said they had difficulty identifying a business use case.”
SOFIAH NICHOLE SALIVIO
News Editor
Urban Jungle has partnered with IKEA to launch home insurance for IKEA customers in the UK, marking IKEA’s first insurance partnership in the British market.
The range includes contents insurance, buildings insurance, and combined buildings and contents cover, with contents policies starting at £60 a year. Policies are available through IKEA’s website and price comparison sites, and customers can change or cancel cover without a fee.
The launch gives IKEA a new service category beyond home furnishings as retailers look for additional revenue streams and closer customer relationships. For Urban Jungle, the deal expands its white-label insurance model with a major consumer brand.
Contents cover offers protection of up to £120,000 and is aimed at renters, flatshares, students, and other households. Buildings insurance provides up to £1 million of cover as standard, with optional extras including accidental damage, home emergency, out-of-home cover, and legal expenses.
The companies are entering the market as underinsurance remains an issue in the UK, particularly among renters. Urban Jungle said only 57% of private renters currently have contents insurance.
Founded in 2016, Urban Jungle has served more than 300,000 customers in the UK across home and travel insurance. It sells directly to consumers and through partnerships with other brands.
Retail push
The agreement also broadens IKEA’s “life at home” services offer in the UK, which already includes home move and set-up services and a branded credit card. The insurance product is positioned as part of that wider push into services linked to household needs.
Insurance sold through retail and affinity partnerships has become a more established route to market for specialist providers, particularly in home, travel, and embedded finance products. These arrangements allow retailers to offer adjacent services without building their own regulated insurance operations from scratch.
Jimmy Williams, Chief Executive Officer and Co-Founder of Urban Jungle, said the deal was a significant milestone for the company.
“We are delighted to partner with IKEA, and this marks a significant milestone in Urban Jungle’s mission. We believe in fair insurance for everyone, and by joining forces with IKEA, we can bring our technology-driven, AI-powered, accessible home insurance to an even wider audience. We are proud to be the first insurance provider to collaborate with IKEA in the UK, offering insurance that truly puts the customer first,” he said.
IKEA said the product forms part of its effort to support customers beyond furnishing purchases.
“IKEA’s mission is to create a better everyday life for the many people, and that extends to feeling secure and protected in your home. By partnering with Urban Jungle, we are bringing a simple, functional, and affordable home insurance product to our customers, ensuring they have peace of mind that their homes and belongings are protected. As part of our wider life at home services offer, this partnership helps us support customers beyond home furnishing, making everyday life at home a little easier,” said Callum Leavy, Country Customer Experience Manager, IKEA UK.
New store DartSmart set up shop in unit 14 of Templars Square Shopping Centre, Cowley, with a grand opening event on Saturday, August 1.
The small, family-run business has been launched by Dwaine Jackson, an avid player who wanted to create Oxfordshire’s ‘new home of darts’.
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He is supported by his wife, Jay, who helped setting up the store while on maternity leave with their nine-month-old son, from her job as a personal assistant.
Mr Jackson said: “I have a passion for darts and I play regularly in the local Oxford leagues, but I noticed I needed to travel out of Oxford for accessories, or order online with delivery costs and longer wait times.
“So, I wanted to bring an accessible darts shop central to Oxford and surrounding towns to fulfil the needs of the local dart players.”
DartSmart sells premium equipment and accessories for all levels, for beginners to professionals, stocking major brands.
It also offers a trade discount for pubs, clubs and league venues, to support the sport the owner loves so much, and has two dedicated oches so customers can try before they buy.
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A spokesperson for Templars Square Shopping Centre said: “Whether you’re inspired by world-class players like Luke Littler or picking up your first set of darts, DartSmart has everything you need to enjoy the game, from darts and dartboards to flights, shafts and cases.
“Pop in and give them a warm Templars Square welcome.”
DartSmart is open from Tuesday to Saturday, 10am to 6pm, and until 4pm on Sundays.
SOFIAH NICHOLE SALIVIO
News Editor
OneAdvanced has signed a Memorandum of Understanding with Cosine to join the Lumen Sovereign Coalition, which is working on what the companies describe as Britain’s first fully sovereign frontier AI model.
The agreement brings OneAdvanced into a group of companies and institutions helping to shape the model for regulated and essential service sectors. Its role will include contributing use cases, operational requirements, testing scenarios and deployment feedback from industries where its software is already in use.
Those sectors include healthcare, government, justice, education, care and business services. OneAdvanced will use that experience to help define how the model should operate in settings where security, governance and operational rules can limit the use of foreign-hosted AI systems.
Cosine, a London-based AI laboratory, is developing the Lumen Sovereign model with support from a wider industry coalition. Other members include BAE Systems, Babcock International Group, BT, HSBC, Lloyds Banking Group, LSEG, NatWest Group, PwC, The Alan Turing Institute and Vodafone.
The project is backed by the UK Government’s Sovereign AI Programme, which has committed GBP £500 million. The model is due to be trained using the Isambard supercomputer in Bristol.
OneAdvanced’s involvement follows its work on a healthcare large language model developed with NVIDIA and trained on NHS primary care data. That system was designed to improve primary care triage, and the company is positioning it as evidence of its experience in applying AI to sector-specific operational needs.
In healthcare, OneAdvanced says its software supports more than 40 million NHS patients across NHS 111, GP practices and trusts. It also works across local government, education, legal services, transport and supply chains.
Sector input
The tie-up reflects a broader push in the UK technology sector to develop AI systems that can be hosted, trained and audited within the country. For organisations operating in heavily regulated environments, questions about where a model runs, what data it is trained on and who can review its operation have become increasingly important in procurement and deployment decisions.
Cosine says the coalition is intended to ensure the model is shaped by organisations that will use it in real operating environments, rather than by technical teams alone. That means feeding in practical constraints from sectors such as healthcare, local government and legal services.
Cosine framed that goal around control and auditability.
“We’re building Lumen Sovereign because we think the UK needs frontier AI it can actually control: where the model runs, what data trained it, who can audit it. That only works if we build it alongside the organisations running the country’s real, regulated infrastructure. OneAdvanced helps us achieve that goal. Their experience with the NHS, local government, education, and thousands of legal practices means they bring insights into the operational constraints a sovereign model needs to actually be useful,” said Alistair Pullen, Co-founder & Chief Executive Officer of Cosine.
Practical focus
For OneAdvanced, the move also underlines its argument that the next stage of AI adoption in critical services will depend less on general model performance claims and more on whether systems can fit existing workflows, governance standards and data-handling requirements.
The company has been advocating for AI systems designed around UK data residency and domestic control over infrastructure. Its software footprint in public and regulated services gives it a route into organisations that may be cautious about deploying overseas-hosted models in sensitive settings.
Simon Walsh set out that position in his remarks on the coalition agreement.
“We have long advocated sovereign AI as the safest and most secure way for UK organisations to leverage the transformative power of AI in their flow of work. Through our work with NVIDIA to develop the UK’s first sovereign healthcare large language model, trained on NHS primary care data to improve patient triage outcomes, we have seen first-hand the importance of combining advanced technology with deep sector knowledge, robust governance and a clear understanding of the workflows organisations rely on every day. That is why we are delighted to join the Lumen Sovereign coalition.
“Organisations in the UK’s highly regulated and essential service sectors need AI that is not only powerful, but secure, trusted and designed around the realities of the environments in which it will operate. We look forward to working with Cosine and the wider coalition to help turn that ambition into practical capability,” said Walsh.
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