Businesses across the North West report surge in productivity and profits due to increasing use of artificial intelligence. Tony McDonough reports

Adoption of artificial intelligence (AI) is growing among North West businesses and is leading to higher productivity and higher profits, a new study has revealed.

In its latest Business Barometer report, Lloyds Bank reveals AI is fuelling “significant financial benefits”. It shows 89% of firms are seeing increased productivity and 56% reporting higher profits over the past 12 months.

Of those who reported a profit boost from using AI, 54% recorded an uplift of 11% or more, with a further 32% saying profits increased by 6-10%, and 14% saying profits increased between 0% and 5%.

These findings come as investment in AI accelerates, with three-quarters of North West businesses confirming they have invested in AI. 

The research shows 44% of firms spent less than £25,000 to enhance their AI capabilities, followed by 18% of firms who spent between £25,000-£100,000, 6% spending between £100,000-£250,000 and 7% spending £250,000 or more.

More than two-thirds (68%) of businesses in the North West say they are currently using AI. The survey shows that customer service roles have been upskilled the most by AI (53%), followed by sales teams (29%).

Investment is now following the AI trend. Liverpool SME investment specialist River Capital was ahead of the curve, setting up its fund:AI to support businesses utilising artificial intelligence in 2022.

READ MORE: Merseyside brake disc maker on brink of collapse

Chris Whittle, area director in the North West at Lloyds, said: “These results show how businesses across the North West are approaching AI as a driver of growth and to deliver a competitive edge.

“As they invest further in the technology, and expand its use, they will need clear oversight and robust processes to ensure these tools are used responsibly and transparently.”