KPMG has raised its forecast for UK gross domestic product growth to 1.5%, citing strong investment in artificial intelligence infrastructure alongside resilient output from private-sector services.

The economic forecasters also identified spending on digital transformation as a reason for the upgrade. Their assessment places investment in technology among the drivers of the improved outlook, with service-sector activity providing further support.

The distinction matters: KPMG’s more optimistic projection rests on both capital spending and continuing business output, rather than artificial intelligence investment alone. The 1.5% figure remains a forecast, not a confirmed growth result.