How Scotland is leading the UK in AI productivity gains

Scots firms that have integrated AI into their operations are reporting significant financial benefits, according to the latest Bank of Scotland business barometer, with 96 per cent seeing increased productivity - the highest proportion of any UK nation or region. Meanwhile, 32 per cent of those Scottish companies have recorded higher profits over the past 12 months, the study notes.

Of those businesses that reported a profit boost from using AI, 60 per cent recorded an uplift of 11 per cent or more, with a further 34 per cent saying profits increased by between 6 and 10 per cent, and 6 per cent saying profits increased by up to 5 per cent.

The findings come as investment in AI accelerates, with nearly half (46 per cent) of Scottish businesses confirming they have invested in the technology.

The research from Bank of Scotland found that 23 per cent of firms spent less than £25,000 to enhance their AI capabilities, followed by 9 per cent of firms which spent between £25,000 and £100,000, with 5 per cent spending between £100,000 and £250,000 and 9 per cent spending £250,000 or more.

Alongside these gains, Scottish businesses were found to be investing in the skills needed to make AI adoption effective. The survey showed that just over a fifth of businesses have upskilled their customer service teams (23 per cent), while the same proportion have upskilled their sales teams.

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Martyn Kendrick, Scotland director at Bank of Scotland Commercial Banking, said: “Scottish businesses are seeing clear results from their investments in new AI tools and training - improved productivity and stronger profitability.

“Firms across the country recognise the strategic advantage that this technology can deliver. As they make further investments in it, and expand its use, they will need clear oversight and robust processes so that it is used responsibly and transparently.”

The bank, part of Lloyds Banking Group, said it was also seeing the benefits of its investment in AI. Earlier this year, Lloyds developed a generative AI tool which processes complex property tenancy schedules in minutes, rather than the 75 hours previously required.

While it does not make decisions, the tool streamlines preparation so teams can focus on judgement-based work and supporting clients, the bank added.

Lloyds Banking Group recently launched the AI Academy, a programme designed to provide practical AI skills for all colleagues. The bank said its aim is to equip colleagues with the skills and knowledge to implement AI solutions in their day-to-day work, “boosting efficiency and allowing colleagues to focus their time on high-value tasks”.

The business barometer survey began in 2002 and research is carried out monthly on behalf of the bank by Ipsos. The latest poll was conducted with 1,200 companies, including 77 in Scotland, with a minimum turnover of £250,000.

Scotland powering ahead as AI tech moves to change the world, for better or worse