Almost two-thirds of Scottish businesses adopt AI

Artificial intelligence (AI) has been adopted by nearly two-thirds of Scottish businesses, according to the Fraser of Allander Institute.

A majority of firms in every major sector of the Scottish economy use AI, the latest Scottish Business Monitor found, with the highest usage in the services industry where nearly three-quarters have adopted it.

However, while the survey of over 300 firms found AI adoption was widespread, most were not using it intensively.

Firms reported low to moderate use of AI, indicating it is often relied on as a supporting tool rather than a technology embedded in operational processes.

Mairi Spowage, director of the research unit, said: “The key question is no longer whether businesses are using AI, but how deeply the technology can be integrated into business processes to support productivity and long-term growth.”

The survey found 64 per cent of firms had used AI in the last three months, up from around half from the previous quarter.

More than half of construction, and manufacturing and production firms reported using AI for the first time.

Of businesses that used AI, the vast majority use it for day-to-day tasks while three-quarters have adopted it for role-specific tasks, graphic design and branding, specialist advice and business planning. Seven in ten use it to support decision-making and future planning.

The Business Monitor also found businesses on the whole have become less pessimistic about the economic outlook, though concern about economic and political uncertainty remained high.

Cost pressures were widespread, though there were some signs of moderation with the number of firms reporting higher overall business costs and expected costs having dropped from the previous quarter.

Spowage continued: “The latest Scottish Business Monitor provides encouraging signs that business conditions are improving. Activity, employment and sentiment have all strengthened, and businesses have become less pessimistic about future growth.

“However, the survey also highlights a clear disconnect between improving conditions today and firms' willingness to invest for the future. High levels of economic and political uncertainty continue to weigh on business decision-making, despite relatively few firms citing access to finance as a major challenge.”