Edinburgh’s in the box seat to become Europe’s data capital - David Caskie

When economic growth is so often spoken about in terms of start-up companies, it is possible to lose sight of the strength that exists in business heritage and legacy. Yet both are fundamental to Edinburgh and Scotland’s ambition to be a data capital for Europe.

Edinburgh’s data and AI (artificial Intelligence) expertise has been building for more than 60 years, while its financial services sector, one of the leaders in data-driven commerce, has a global reputation that goes back centuries. These are the factors which provide Edinburgh with a unique advantage over other comparable cities also looking to capitalise on the growing opportunities of data usage, setting the capital apart from the likes of Dublin, Amsterdam and Stockholm.

Thanks to the vision for machine learning of a former Bletchley Park codebreaker, Professor Donald Michie, 2023 marks the 60th anniversary of AI research in Edinburgh. Academics and increasingly business and public sector organisations have been working on and with AI since 1963, building a distinct legacy in this area of expertise. Connected to Edinburgh’s existing service-led, knowledge-based economy, and particularly, its globally significant financial services sector, the capital has the leverage to accelerate the pace of development of data innovations.

The Financial Services (FS) sector was an early leader in recognising the need to be data-driven. With over 2,000 FS businesses in Scotland and more than 200 FinTech companies, it is a vibrant community. Having embraced data technology, it has produced market-leading innovations, from pensions dashboards to personalised customer service systems. The interaction between big and small businesses in the sector has been a critical factor and one that is expected to underpin future success.

David Caskie, joint managing director for Accenture in Scotland

But the FS sector can also act as a catalyst for other industries, creating the conditions for data-led insights and innovation in all aspects of life, from healthcare to climate change. More dialogue between the financial and other sectors will create insights that will have immense value not just in Scotland but also further afield. The Data-Driven Innovation (DDI) initiative’s ambitions for the Smart Data Foundry provide a framework for this to become an integral part of Edinburgh and Scotland’s data capabilities.

That our FS companies and fintech businesses are operating in the same ecosystem as AI research institutions, and that they’re connected to other data-led innovations in life sciences, manufacturing, cyber security and public sector policy, instantly elevates the potential for attracting international attention. With the FS sector’s global networks, too, key audiences are easier to reach.

When Accenture’s Applied Intelligence team in Scotland looked at the extent to which Edinburgh had progressed towards its goal of becoming a data capital for Europe for a new research project, they found that there was a strong sense that success was within reach. But collective belief was critical and interviews across business and third sector organisations revealed gaps. A shared sense of purpose where academia, business and public policymakers all understood and were committed to the roles they played in a collaborative journey forward was still missing. Strengthening this critical mass of shared endeavour can take Edinburgh ‘over the line’.

One area of focus that emerged from the research was the development of the right skills and their availability in a competitive marketplace. For instance, it was felt by some that businesses can take a more active role by participating in curriculum and course development, as well as by providing business insight, coaching and work experience to create a cohort of work-ready university and college graduates who stay in Edinburgh and Scotland.

Providing graduate apprenticeships for those seeking alternate pathways into data and AI careers is another opportunity for businesses to take the lead and access new pools of talent to drive growth. The vehicles exist to make this happen. They now need to be maximised.

Only by investing consistently in new generations of talent will we secure Edinburgh’s long heritage for data and AI innovation. Inspiring everyone with the possibilities for data and AI will create the buzz that will unite everyone behind a shared sense of purpose and make Edinburgh a data capital for Europe.

Accenture’s report on Edinburgh’s progress to becoming the data Capital for europe is available at accenture.com.

David Caskie, Joint Managing Director for Accenture in Scotland