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Scottish businesses integrating AI into their operations are reporting significant financial benefits, with 96 per cent seeing increased productivity – the highest proportion of any UK nation or region – and 32 per cent reporting higher profits over the past 12 months.

Of those who reported a profit boost from using AI, 60 per cent recorded an uplift of 11 per cent or more, with a further 34 per cent saying profits increased by 6-10 per cent, and six per cent saying profits increased between 0-5 per cent.

The findings come as investment in AI accelerates, with nearly half (46 per cent) of Scottish businesses confirming they have invested in AI.

The research from Bank of Scotland found that most firms spent less than £25,000 (23 per cent) to enhance their AI capabilities, followed by nine per cent of firms who spent between £25,000-£100,000, five per cent spending between £100,000-£250,000 and nine per cent spending £250,000 or more.

Nearly half (46 per cent) of businesses in Scotland say they are currently using AI.

Alongside these gains, Scottish businesses are investing in the skills needed to make AI adoption effective. The survey shows that just over a fifth of businesses have upskilled their customer service teams (23 per cent), while the same proportion have upskilled their sales teams (23 per cent).

Martyn Kendrick, Scotland director at Bank of Scotland Commercial Banking, said: “Scottish businesses are seeing clear results from their investments in new AI tools and training – improved productivity and stronger profitability.

“Firms across the country recognise the strategic advantage that this technology can deliver. As they make further investments in it, and expand its use, they will need clear oversight and robust processes so that it is used responsibly and transparently.”

Lloyds is also seeing the benefits of its investment in AI. For example, earlier this year, Lloyds developed a Generative AI tool, ‘CRE AI’, which processes complex real estate tenancy schedules in minutes, rather than the 75 hours previously required. While it doesn’t make decisions, the tool streamlines preparation so teams can focus on judgement-based work and supporting clients.