There are major regional disparities in AI adoption between London and Northern-based businesses, according to new research. With AI revolutionising industries, and as the UK strives to become a global AI leader, businesses based in the North risk falling behind unless action is taken.
The findings come from a survey of 1,000 IT decision-makers conducted by ANS, a digital transformation company and Microsoft’s UK Services Partner of the Year, in collaboration with YouGov.
While 4 in 5 London businesses (82%) believe AI is important to long-term strategic goals, just 44% of businesses in the North share this perspective. Businesses in London also understand the long-term impact on AI-related roles and responsibilities, with 76% expecting an increase in these roles in the next year, in comparison to the North where this figure halves (37%).
Due to this stronger strategic understanding, 37% of businesses in London are already incorporating AI into some of their business practices. By way of comparison, only 18% of businesses in the North are incorporating the technology.
While there are disparities between London and the North, there are also differences in views and AI adoption across the Northern region. In particular, North West businesses are flying the AI flag for the North. This comes as the Government ramps up focus on AI, with the AI Opportunities Action Plan coming into force, which will include AI Growth Zones to support investment in AI infrastructure.
The North West stands out as the most AI-aware region in the North, as 27% of businesses considering AI as very important to their long-term strategic goals, significantly more than in the North East (4%) and Yorkshire and the Humber (6%). It is arguably unsurprising that only 4% of businesses in the North East and 8% in Yorkshire and the Humber expect AI to have a significant impact on revenue, compared to 15% of businesses in the North West.
Manchester’s position as the largest tech hub outside of London highlights the region’s potential to become a centre of innovation. With increasing focus from the Government on levelling up the North, the North West has a unique opportunity to catch up to London in embracing AI and developing the next generation of AI talent.
While AI adoption varies across regions, businesses largely agree on its key benefits. In both London and the North, many see AI as a tool for improving operational efficiency (London 55%, North West 60%, North East 70%, and Yorkshire & Humber 52%). Despite the widespread awareness of AI’s potential, the focus must now shift to ensure all businesses can implement AI effectively and responsibly.
“The significant differences in sentiment towards AI and adoption of it across the UK are shocking. This is a technology with transformative potential, for businesses of all sizes, entire industries and society as a whole. While the government has an increased focus on AI investment in the North, Northern businesses in particular should be looking inward to assess how they harness the power of AI within their business before they get left behind,” said Richard Thompson, CEO of ANS. “Efficiency gains are just the tip of the iceberg; AI can drive positive impact at a strategic level, assisting with decision-making and new product sets, down to everyday operations across all business units.
“No matter their size, businesses shouldn’t feel daunted by the prospect of AI, but instead they should look to explore the art of the possible. AI is here to stay, and those who embrace it will be sure to unlock new opportunities.”
“Becoming AI-ready is critical for all businesses if they want to stay ahead. Our data shows that Northern businesses are at risk of levelling down if they don’t adapt and embrace this emerging technology quickly. But, equally, they should take the time to understand which systems would be most beneficial for them and invest in creating robust foundations first,” added Kyle Hill, CTO, ANS. “Having the right infrastructure and processes in place is key, from the right Cloud technologies to the structure of your data and comprehensive staff training. All businesses, no matter their size or location, deserve to take advantage of AI and reap the long-term benefits. If they dream big but start small, it will make the AI adoption journey much smoother.”
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