Companies in the Northeast and Yorkshire are increasingly embracing artificial intelligence (AI) as a tool to drive future growth.
According to new regional insights from Lloyd's Business Barometer, confidence is built around AI possibilities that will boost productivity, profitability and the local economy.
In the northeast, almost two-thirds of companies believe that wider AI adoption could be a major catalyst for growth, with more than half already making the technology work.
Most of these early adopters say the outcome is looking at the outcome. 87% of reports said they increased productivity, while 85% said they made them more profitable.
Going forward, one in five Northeast companies plans to increase AI investment over the next year, with 37% of current non-users looking to adopt it for the first time.
Martyn Kendrick, regional director of SME Banking, Northeastern Lloyds, Scotland, Scotland and SME Banking, said:
“And that is a view that is likely to be shaped by their own positive experiences.
“Most companies that already use AI have said the same thing to us. It's driving both productivity and the ultimate line.”
Yorkshire businesses talk similarly.
More than half of the companies surveyed said AI is the key to regional economic growth, with 56% already using it. It is primarily for data analysis and more informed decision-making.
Again, 85% reported profits in both productivity and profitability, while over half are planning to invest more, with 13% expecting to create a new AI-focused role.
Martyn added: “Yorkshire businesses see AI as a key driver of local economic growth.
“Of the companies that already use AI, the majority report profits in both productivity and profitability.”
In both regions, companies said the main recruiting drivers are increasing efficiency, improving margins and expanding their customer base.
Many said a better understanding of the technology, and how peers use it, is key to unlocking further investments.
Martyn added: “There is clearly an appetite for more collaboration and knowledge sharing between companies to maximize the impact of technology.
“By sharing practical lessons and real-world examples, our community will help more businesses advance on their AI journey and unlock everything they offer.”
Lloyd's Business Barometer, which has been tracking UK business sentiment since 2002, surveys 1,200 companies each month and provides early insights into UK economic trends at both regional and national levels.
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