Generative AI alone can’t transform the Scottish economy

Generative AI can unleash creativity across industries in Scotland and unlock the country’s longstanding productivity challenge. Take the financial services industry: gen AI can help with many hours of work that result in productivity gains. Similarly, the energy and resources sector can benefit from innovation, including advanced monitoring systems, enabling engineers to manage systems more effectively.

We’ve crunched the numbers and the opportunity is real. Accenture's analysis shows gen AI could almost double the UK long-term growth rate over the next 15 years, contributing an additional £736 billion to GDP. For Scotland, this translates into a significant opportunity to improve regional disparities and grow different parts of the economy. Crucially, our analysis shows organisations have the most to gain when people remain at the heart of this change.

However, realizing the full potential of gen AI requires overcoming several challenges. Business executives remain concerned about security, accuracy, and an unclear return on investment. Yet, with AI spending expected to rise to 13 per cent of technology budgets this year, Scottish business leaders are showing commitment to overcoming these hurdles.

We need to  make sure people across Scotland have the digital skills for the future​ (Picture: stock.adobe.com)

One of the primary roadblocks is the need to scale AI applications beyond pilot projects. While 70 per cent of Scottish organisations are piloting gen AI in at least one function, only one in eight have managed to scale these initiatives. Ambition alone is not enough. The digital foundations of an organisation need to first be addressed, including their data, digital platforms, and cloud infrastructure, before you can amplify people and processes with the power of AI.

Another critical challenge is the digital skills gap, particularly closing the disparities that exist between regions in the UK. To use AI’s full potential, we need to upskill the workforce and make sure people across Scotland have the digital skills for the future. This does not mean transforming everyone into software engineers but rather equipping them with the fundamentals needed to apply AI technologies effectively.

Building trust in AI is also essential for its widespread adoption. Only a quarter of Scottish workers currently trust business executives to make the right decisions regarding gen AI’s long-term impact. Establishing robust governance frameworks and promoting responsible AI practices will be crucial in building this trust and ensuring that its benefits are distributed equitably across society.

The good news is that Scotland is starting from a position of strength. The presence of strong research institutions and a burgeoning AI talent pool, particularly in Edinburgh and Glasgow, supports the development and implementation of emerging technologies. Much of the digital transformation that businesses have been conducting in the last decade leaves them in good stead.

David Caskie, Joint Managing Director, Accenture in Scotland (Picture: John Need)

Overall, Scotland has much to gain from gen AI-driven economic growth, but it requires a long-term plan. It’s not about using gen AI to fix operations as we know them today – but thinking about how the technology can create new workflows, experiences and ideas for the future. People remain fundamental in this revolution. Gen AI alone can’t transform the economy and boost growth – this will only be achieved by empowering and enabling people with it.

David Caskie, Joint Managing Director, Accenture in Scotland