Scotland leads UK in AI productivity gains

New findings from Bank of Scotland's Business Barometer show that AI is helping Scottish firms work more efficiently and unlock new opportunities for growth.

Scottish businesses integrating AI into their operations are reporting significant financial benefits, with 96% seeing increased productivity - the highest proportion of any UK nation or region - and 32% reporting higher profits over the past 12 months.

Of those who reported a profit boost from using AI, 60% recorded an uplift of 11% or more, with a further 34% saying profits increased by 6-10%, and 6% saying profits increased between 0-5%.

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

The research from Bank of Scotland found that most firms spent less than £25,000 (23%) to enhance their AI capabilities, followed by 9% of firms who spent between £25,000-£100,000, 5% spending between £100,000-£250,000 and 9% spending £250,000 or more.

Nearly half (46%) of businesses in Scotland say they are currently using AI.

Investing in skills and capability

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

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."

AI in Action

Lloyds is also seeing the benefits of its investment in AI. For example, earlier this year, Lloyds developed a Generative AI tool, 'CRE AI', which processes complex real estate tenancy schedules in minutes, rather than the 75 hours previously required. While it doesn't make decisions, the tool streamlines preparation so teams can focus on judgement-based work and supporting clients.

Lloyds Banking Group this year launched the AI Academy, a programme designed to provide practical AI skills for all colleagues, no matter their role or level. The 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. By putting new capabilities into practice, it creates opportunities to provide customers with enhanced and innovative new services, and open potential new revenue streams for the business.