In August a study claimed North West firms were using artificial intelligence to create new jobs but a new survey claims adoption of AI remains a ‘top challenge’ for many businesses in the region. Tony McDonough reports
Incorporating artificial intelligence into their operations remains a “top challenge” for many North West firms, a new survey reveals.
Last month LBN reported a study from Lloyds Business Barometer showing that 57% of businesses that are already using AI say it has created new jobs and that 57% of all firms in the region plan to increase investment in AI to upskill their workforce.
However, new research from accountancy firm BDO says some companies remain daunted by the challenge of AI adoption, despite the opportunities it creates. BDO reports 18% of North West firms rank technological change as one of their biggest challenges.
It also showed almost a quarter of regional businesses plan (24%) to accelerate AI investment in response to the challenge.
Earlier this summer, the government published figures showing that ‘self-reported’ use of AI in UK businesses (with 10 or more employees) has increased from around 12% to around 35% since late 2023, with larger firms more likely to have adopted AI.
It follows the appointment of eight Industrial Strategy AI Sector Champions who will be responsible for setting a clear national vision for how AI should be adopted in their sector, while identifying practical steps to remove barriers and unlock investment.
Sectors include clean energy, professional and business services, advanced manufacturing and digital and technology.
BDO’s bi-monthly Mid-Market Tracker, a survey of 500 businesses with revenues between £10m and £500m, highlights the pressures still facing regional businesses, with particular concern around skills.
According to the survey, over a third of North West businesses (41%) are uncertain over what skills the business will need in future, with over a fifth of regional companies (21%) identifying a specific gap in AI skills amongst entry-level recruits.
Angela Cross, regional managing partner at BDO in the North West, said: “As part of the government’s Industrial Strategy, ministers have set out ambitious plans to accelerate AI adoption across a raft of sectors, aimed at boosting productivity, supercharging economic growth, and unlocking billions in added value.
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“That ambition is shared by many regional businesses looking to develop, integrate and measure the effectiveness of AI, whether that’s across information and communication, improving business operations, or administrative or clerical roles.
“However, given the rapid rate of technological change, there are clearly still significant challenges facing businesses when it comes to transitioning from legacy systems, scaling technology, and sustaining new AI models, often hindered by workforce capability gaps.”