Why I won't let Scotland become so afraid of AI that it loses £23 billion boost to GDP – Alyn Smith
Scotland’s technology minister Alyn Smith says Scotland must seize the opportunities being created by responsible and ethical artificial intelligence
Scotland has a proud role in the history of ideas. The Scottish Enlightenment gave the world new ways of thinking about economics, philosophy and science. Our contributions to medicine have saved countless lives across the globe. We are a nation that has repeatedly proven itself capable of translating intellectual curiosity into practical progress that benefits humanity.
Today, we stand at the threshold of another such moment with artificial intelligence. While much of recent media discourse on this issue has been driven by fear of AI, the technology presents one of the most significant economic opportunities in a generation. With the right investment and leadership, it could generate an estimated £23 billion in additional annual GDP for Scotland by 2035.
We are poised to take full advantage, and already have the foundations in place: world-class talent, cutting-edge infrastructure and a reputation for responsible innovation. Our universities produce outstanding graduates in AI, data science and engineering every year. The University of Edinburgh is home to the UK's national supercomputer, providing the computing capacity needed to support research, public sector innovation and industry collaboration at scale.
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A five-year plan for AI-powered growth
As countries around the world grapple with how to harness AI's potential without being extractive or exploitative of people's data, labour and talent, Scotland is well placed to lead in the development of responsible, sustainable AI.
The Scottish government is working to capitalise on these opportunities through our AI strategy, a five-year plan to harness the technology’s potential to drive inclusive growth and make a positive difference at every level of society, while keeping Scotland competitive in a fast-moving global landscape.
At the heart of this is the AI Scotland programme, which will build public trust and confidence in the technology, while giving Scotland a distinct national voice on the economic and societal questions it raises. It will also provide a platform for business and academic expertise, attract inward investment and jobs, and support the wider application of AI across government, public services and small-to-medium-sized companies.
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Every intervention delivered under this banner will reflect our commitment to responsible and ethical AI. For example, when we deliver programmes to support businesses to adopt AI, we will highlight the need for good governance, data security and environmental sustainability.
We’re also working to establish an independent expert advisory board for AI Scotland by March 2027. This will be a small group with real business and organisational experience, shaping the future operating model of AI Scotland and advising on delivery beyond its first year. This reflects the First Minister's commitment to engage the business community more directly in the development of economic policy.
A start-up worth $100 million
AI also offers real opportunities for Scottish business. A recent McKinsey survey found that 71 per cent of global leaders now see sovereign AI capability as a core priority, driven by concerns about dependency on foreign models and infrastructure.
Scotland is already home to businesses rising to this challenge. Glasgow-based tech company Chemify raised more than £37 million in a recent investment funding round – one of the largest funding rounds of its type in Scotland. Edinburgh's Wordsmith AI, one of the UK's most successful legal tech start-ups, reached a $100m valuation just 18 months after launch, with revenue growing 14-fold year-on-year and more than 500 companies now using its platform.
We want more Scottish enterprises to achieve this kind of success, which is why we will be establishing a high growth unit, working with senior industry leaders from the outset to help high-potential businesses scale, anchor and grow here in Scotland. How they use AI will be critical to their success.
Of course, we know talking about AI and businesses will lead to understandable concerns about the risks to jobs, and we are committed to understanding what AI means for Scotland's workforce. There has been considerable media coverage of possible AI-driven job displacement, but the evidence base remains thin. Indeed, Deloitte found that 84 per cent of companies have not yet redesigned jobs or work itself around AI's capabilities.
That is why we are working with organisations including the STUC to establish a Future Jobs Observatory, with experts drawn from employers, academics and trade unions, to collate existing evidence on the impact of AI on the workforce and to identify where further research is needed. This will particularly focus on employment and job quality, skills development, employee rights and fairness.
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Cautionary tales must be heeded
None of this means we are naive about the risks. The Scottish government understands that trust must be earned, not assumed. We have learned lessons from elsewhere, including Ireland, cited by the United Nations as a cautionary tale of AI development outpacing energy planning. We are determined to take a measured, responsible approach as we pursue AI’s advantages.
Our approach to the technology is guided by the Organisation for Economic Co-operation and Development's principles for trustworthy AI, creating a chain of trust that enhances Scotland's reputation as an ethical place to do business. We believe effective regulation builds public, business and investor confidence, and that there is a growing need to address AI regulation directly. We are exploring what is possible within devolved competence but my strong preference is to align with the EU AI Act.
Where we have latitude to regulate, our approach will be driven by a determination to safeguard citizens and their rights to privacy, freedom of speech and protection from abuse.
Scotland has long been a home for world-changing ideas, from the Enlightenment thinkers who reshaped how we understand the world, to the medical pioneers who changed how we live in it. With AI, we have the chance to write the next chapter of that story, and I intend to seize it.
Alyn Smith MSP is Scotland’s minister for innovation, technology and tertiary education
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