AI adoption in Scotland remains behind UK - Bank of Scotland Business Barometer

Some 54 per cent of businesses say they plan to increase such investment in the coming year, according to the findings from the latest 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.

The research indicates that 48 per cent of the country’s firms currently use AI, compared with 61 per cent UK-wide, and 38 per cent of those using it say it has created new jobs in their business, against 54 per cent across the UK.

On skills, 52 per cent of Scottish businesses say their workforce has the AI skills needed to meet business requirements, while 37 per cent say it does not.

Of those polled by the bank, which is part of Lloyds Banking Group, 47 per cent said that businesses which fail to adopt AI in the next three years will be at a competitive disadvantage.

Businesses in Scotland using AI cited a lack of understanding (25 per cent of those quizzed), 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,” he added.

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.”

She added: “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.”

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