From technology to entertainment: industries shaping the UK in 2026

Businesses are adopting artificial intelligence, renewable energy is supplying more electricity, and life sciences firms are developing new treatments. Digital entertainment is growing as people spend more time online and on mobile devices.

These changes affect jobs, business investment and the services people use every day. The government’s Modern Industrial Strategy identifies key growth sectors, including clean energy, life sciences, creative industries, and digital technology. This article looks at these four sectors and uses recent UK data to show where growth is happening.

Artificial Intelligence and Digital Technology

AI use is spreading across British businesses. The Office for National Statistics reports that 35% of UK businesses with 10 or more employees used at least one AI technology in June 2026. In late 2023, the figure stood at about 12%.

Adoption varies by company size. Large firms are more likely to use AI than smaller ones. The reported adoption rate is 49% among large firms, compared with 28% among the smallest firms in the survey.

Text generation is the most common AI tool among businesses. Staff use it to draft reports, summarise research and answer customer queries. These tools cut manual work and speed up tasks.

Currently, the use is still very shallow. Adopting firms run 1.6 AI tools on average, up from 1.4 in 2023. Only 10% describe their use as extensive.

Workers are moving faster than employers, too. One UK survey found that 55% of employees use AI for work, even though formal business adoption remains lower. This gap suggests some workers use these tools before their employers roll them out across the organisation.

The UK compares well with its neighbours. Worker use of generative AI is 36%, ahead of France, Germany and Italy. The US is higher at 43%.

Renewable Energy and Green Technology

Renewable energy is taking a larger share of the UK's electricity supply. Government figures show that wind, solar and other renewables generated a record 52.1% of UK electricity in 2025, up from 50.5% in 2024.

Renewable electricity generation grew in early 2026, hitting a record 43.7 terawatt-hours in the first quarter, up 18% from the first quarter of 2025. Offshore wind supplied 20.5% of total generation.

Solar output rose 33% in 2025. Even so, fossil fuels still supplied 32.3% of electricity.

Similarly, investments are supporting new projects and supply chains. In January 2026, the government said its latest offshore wind auction had leveraged £3.4 billion in private investment. The money is expected to flow into factories, ports and supply chains. Industry estimates put the jobs supported at up to 7,000.

Digital Entertainment and Online Gaming

Streaming services, video platforms and mobile games now play a huge role in how people spend their leisure time. Adults spend an average of 4.5 hours online each day, and smartphones account for most of that time. YouTube averages 51 minutes a day.

Video games are another major market. UK consumers spent £8.76 billion on games in 2025, up 7.4% from the previous year. Mobile game spending rose by 7.9% to £2.07 billion, showing the value of games played on phones and tablets.

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Healthcare Innovation and Life Sciences

Healthcare and life sciences remain important parts of the UK economy. The sector includes pharmaceutical companies, medical technology firms and biotechnology businesses. The government says its Life Sciences Sector Plan helped attract more than £3 billion in public and private funding in its first year. The British Business Bank puts the sector’s annual contribution at almost £74 billion, with nearly a quarter of a million jobs.

Public money is backing growing firms, too. The government has launched a programme of up to £600 million for health technology and life sciences companies. The bank supplies £200 million. Private investors are expected to add about £400 million.

Medical research also supports the development of new medicines, diagnostic tests and treatments. Biotechnology and genomics help researchers study diseases and identify ways to detect or treat them earlier. Clinical trials test whether new treatments are safe and effective before wider use. The average time to set up a clinical trial fell from 169 to 122 days in the first half of 2025 to 2026.

Digital healthcare is another area of growth. The NHS is working to expand the use of health data, artificial intelligence and digital tools to support diagnosis and care. In July 2026, NHS England set out how it will spend £10 billion on technology over three years. An AI triage tool in the NHS App will reach 200,000 patients within a year and all users by April 2028. NHS England is also backing AI notetaking in hospitals. An NHS study found it gave clinicians nearly a quarter more time with patients.

What These Changes Mean for the UK

These industries support jobs across the UK. The offshore wind auction will support up to 7,000 jobs, according to industry estimates. The government’s life sciences jobs plan aims to create 66,000 more jobs by 2035. AI and video games add demand for digital skills.

Investment also supports new products and services. Renewables now generate more than half of UK electricity. Faster trial set-up helps researchers test treatments sooner. The NHS App’s AI triage tool is expected to reach all users by April 2028.

These sectors contribute to economic activity through jobs, investment and consumer spending.”The life sciences sector contributes almost £74 billion a year, according to the British Business Bank. UK consumers spent £8.76 billion on games in 2025. Long-term growth will depend on skilled workers, effective regulation and public trust.