Scotland needs to reignite momentum if it is to realise its tech ambitions
It’s time the Scottish government recognised that the technology sector is a key driver of our economic future, Nicola Taylor writes
Scotland’s tech sector has never lacked ambition. What it has sometimes lacked is momentum – and after the inevitable pause in priorities that comes with an election cycle, momentum is exactly what we now need to propel forward.
The sun may finally be shining in Scotland, but the economic climate remains stormy with businesses facing tighter budgets, more cautious investment and increased commercial pressures. However, what we continue to see across the sector is a remarkable sense of optimism. Our members are adapting and finding new opportunities for growth despite the uncertainty. While companies are undoubtedly being more disciplined in their decision-making, there remains a strong belief in the long-term potential of Scotland's technology sector and its ability to drive economic progress, productivity and innovation.
AI, unsurprisingly, continues to dominate much of the conversation. Even before the launch of Scotland’s AI Strategy in March, momentum around AI adoption, automation and data-driven productivity was building rapidly. Crucially, businesses are now moving beyond experimentation, with the next six months set to see more organisations operationalising AI at scale, while addressing the accompanying governance, workforce and responsible implementation challenges.
And this operationalisation is not just confined to the tech sector. We’re seeing growing collaboration across industries like finance, energy, manufacturing, healthcare and the public sector.
Scotland has always performed strongly when industries join forces rather than compete in isolation. Indeed, the willingness of businesses, universities, government and public agencies to work together remains a genuine differentiator for Scotland.
But collective willingness alone will not secure Scotland’s digital future.
Skills and workforce shortages continue to be a major concern across the sector. Businesses consistently tell us that access to talent, recruitment pressures and limited early-career pathways are constraining growth. One of the most positive developments, in this regard, is the growing collaboration between industry, universities and colleges, which is creating more opportunities for placements, commercial experience and clearer pathways for people entering technology careers.
Procurement, however, is an area demanding urgent attention. For many scaling technology businesses and SMEs, accessing public sector procurement opportunities remains unnecessarily complex at best, and impossible at worst. Scotland must use procurement more strategically to support innovation and help scaling companies grow. But that requires simpler, more accessible pathways into the system.
This is just one of our calls to action for the new government.
More broadly, the new government must continue to recognise technology not simply as a standalone sector, but as a key driver of Scotland’s wider economic future. That means long-term investment in skills, entrepreneurship, scaling support and regional ecosystem development. It means building stronger partnerships between government, industry and academia around talent development, innovation and work-integrated learning. And it means delivering Scotland’s digital and AI ambitions with greater pace and consistency by following through on the AI Strategy roadmap.
As the trade body for Scottish tech, we will continue playing our part. We are expanding our work on skills and talent development through initiatives such as e-Placement Scotland and Digital Critical Friends, alongside broader engagement with schools, colleges and universities. We are growing cluster activity across cyber, data, AI, Managed Service Provision and digital transformation. And increasing our focus on supporting greater procurement visibility and buyer engagement for SMEs.
Across it all, we remain committed to helping our members navigate the realities of AI adoption, workforce development, scaling challenges and international growth opportunities.
The next six months will undoubtedly bring continued economic uncertainty. But they will also bring significant potential. Scotland’s digital economy remains ambitious, innovative and deeply collaborative. If the new government can match that ambition with clearer long-term thinking and faster delivery, Scotland is well placed not only to compete internationally, but to lead in areas where digital innovation can transform our economy and society.
Nicola Taylor, Chief Operating Officer at ScotlandIS
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