Scottish businesses plan AI investment to remain competitive

More than half (54 per cent) of Scottish businesses plan to increase investment in AI to upskill their workforce in the coming year, according to research from the Bank of Scotland Business Barometer.

Of those increasing investment, 34 per cent expect to spend between £25,000 and £100,000, while 29 per cent expect to spend between £100,000 and £250,000.

Just under half (48 per cent) of the country’s firms said they currently use AI. Over a third (38 per cent) of those using it said it has created new jobs in their business.

Over half (52 per cent) of Scottish businesses said their workforce has the AI skills needed to meet business requirements, while 37 per cent said it does not.

Close to half (47 per cent) of Scottish firms expressed the view that businesses failing to adopt AI in the next three years will be at a competitive disadvantage.

Businesses in the country using AI cited a lack of understanding (25 per cent), security concerns (20 per cent), cost (14 per cent) and not having enough internal expertise (14 per cent) as the main challenges to getting greater value from AI.

Martyn Kendrick, Scotland director at Bank of Scotland Commercial Banking, said: “Scottish businesses recognise that AI is going to play an increasingly important role in how they operate and compete, and it’s encouraging to see more than half planning to increase investment in AI skills over the coming year.

“But there is still ground to make up, as AI adoption in Scotland remains behind the UK average, and more than a third of firms say their workforce doesn’t yet have the skills they need. Turning planned investment into practical skills and greater confidence will be crucial if Scottish businesses are to unlock the benefits of AI, from improving productivity to creating new jobs and supporting long-term growth.”

Amanda Murphy, chief executive of Lloyds Business and Commercial Banking, said: "AI has the potential to be as transformative for businesses as the internet was a generation ago. The businesses seeing the greatest benefit are treating it not simply as a technology investment, but as a catalyst for broader transformation across their organisation.

“Success will depend on more than access to technology. It will come from building the skills, culture and confidence to use it effectively. The businesses that can combine human ingenuity with the power of AI will create a meaningful advantage in productivity, innovation and growth.

“As adoption accelerates, the greatest challenge for many organisations may not be keeping pace with technology, but ensuring they have the capabilities to adapt alongside it. Supporting businesses to navigate that transition will be critical if the UK is to fully capture the economic opportunity AI presents."

www.lloydsbank.com 

Pictured: Amanda Murphy, chief executive of Lloyds Business and Commercial Banking