Health and social care firms build cash buffers as they accelerate AI investment for 2026

"Health and social care businesses across the UK have strengthened their cash reserves and signalled a surge in AI investment for the year ahead, according to new data from the Barclays Business Prosperity Index. The report - drawing on external research from 500 business leaders and anonymised data from 35,000 Barclays client businesses - reveals that firms entered the Autumn Budget period with greater caution but growing confidence in technology-led transformation."

"Almost three quarters (74 per cent) of businesses in the sector reported stronger-than-average demand for their products and services in Q3, even as wider economic conditions remained strained. SMEs, in particular, responded by bolstering their financial safety nets: small health and social care firms increased savings by 6.4 per cent year-on-year, compared with a 2.4 per cent fall among larger counterparts."

"The overwhelming majority of businesses surveyed - 96 per cent - believe AI can benefit their organisation, with leaders highlighting gains ranging from workforce productivity to enhanced patient care. More than four in ten (39 per cent) said AI could directly improve clinical outcomes, while a third cited better patient experience as a key driver for adoption. A further 38 per cent said AI could ease workforce pressures by reducing burnout and freeing staff to spend more time with patients,"

Barclays Business Prosperity Index data from 500 business leaders and anonymised records of 35,000 client firms shows health and social care businesses entered the Autumn Budget period cautiously but with growing tech confidence. Demand remained strong in Q3 for 74 per cent of firms. Small providers increased savings 6.4 per cent year-on-year while larger counterparts saw a 2.4 per cent decline. Cash inflows fell 1.1 per cent and outflows fell 2.2 per cent, lifting net cash flow 1.1 per cent. Ninety-six per cent expect AI benefits, 86 per cent plan increased AI investment, and around a third cite limited finance for new equipment as a barrier.

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