More than half of Scottish businesses are planning to step up investment in AI skills over the next year, new research has found.
The latest findings from the Bank of Scotland business barometer discovered 54% of Scottish firms are planning to increase their investment to upskill their workforce as they look to remain competitive.
Of those increasing investment, about a third (34%) expect to spend between £25,000 and £100,000 while 29% expect to spend between £100,000 and £250,000.
However, Scotland continues to lag the UK on AI adoption, according to researchers.
The barometer found just 48% of Scottish firms currently use the technology compared with 61% UK-wide and more than a third say their workforce still lacks the AI skills their business needs.
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.”
According to the latest business barometer, Scottish firms using AI cited a lack of understanding (25%), security concerns (20%), cost (14%) and not having enough internal expertise (14%) as the main challenges to getting greater value from the technology.
“AI has the potential to be as transformative for businesses as the internet was a generation ago,” Amanda Murphy, chief executive officer of Lloyds Business and Commercial Banking, said.
“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.”
Across the UK, more than half of UK businesses (54%) say AI has created new jobs and 58% plan to invest in AI skills.
Some 31% say their workforce does not yet have the AI skills needed and 58% of UK firms say businesses risk falling behind competitors if they fail to adopt AI.
“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,” Ms Murphy said.
“Supporting businesses to navigate that transition will be critical if the UK is to fully capture the economic opportunity AI presents.”