{"id":2843,"date":"2026-04-24T08:09:01","date_gmt":"2026-04-24T07:09:01","guid":{"rendered":"https:\/\/www.thebusinessdesk.com\/scotland\/?p=2843"},"modified":"2026-06-04T12:26:59","modified_gmt":"2026-06-04T11:26:59","slug":"how-to-separate-ai-hype-from-reality","status":"publish","type":"post","link":"https:\/\/www.thebusinessdesk.com\/scotland\/news\/2843-how-to-separate-ai-hype-from-reality","title":{"rendered":"How to separate AI hype from reality"},"content":{"rendered":"<p>In the few years since large language models (LLMs) went mainstream, artificial intelligence (AI) has become ubiquitous, with companies across all sectors and sizes jumping on the technology bandwagon.<\/p>\n<p>Of course, despite those two letters being bandied about endlessly, AI can refer to any number of algorithmic applications. Smarter people than I can debate when this bubble may burst, or the dangers inherent in letting the market drive this new global arms race. This piece attempts to highlight those Scottish companies successfully integrating the tech, alongside those innovating AI products and services, as well as assessing the risks and regulations with adoption at the moment.<\/p>\n<p>The hype has been building for some time, but a significant recent change came in the form of the Scottish Government <a href=\"https:\/\/www.thebusinessdesk.com\/scotland\/news\/2915-scottish-government-sets-out-ai-strategy\">outlining its AI Strategy for 2026 to 2031 last month<\/a>.<\/p>\n<h3>The state&#8217;s masterplan<\/h3>\n<p>Coming just before an election means this could be subject to change, but the plan includes 10 actions to be completed by this time next year, including the appointment of &#8216;AI Industry Champions&#8217; across priority sectors and regions; a nationwide engagement programme listening to concerns and developing solutions that ensure public trust; a revitalised AI adoption programme to accelerate small business productivity; a Future Jobs Panel to assess AI\u2019s workforce impact; an AI Scale\u2011up Accelerator pilot; and promotion of Scotland as somewhere to build data centres.<\/p>\n<p>Delivery will be driven by AI Scotland, a new national transformation programme led by the government, along with partners including enterprise agencies, The Data Lab and ScotlandIS.<\/p>\n<p>Karen Meechan, chief executive of ScotlandIS, told TheBusinessDesk that while the direction of travel is positive, the challenge now lies in delivery.<\/p>\n<p>&#8220;While the strategy is ambitious, this ambition needs to be matched with practical implementation that works for businesses on the ground \u2013 companies will require clearer adoption pathways, more hands-on support and stronger workforce transition planning if Scotland is to translate its AI ambitions into real productivity gains and global competitiveness,&#8221; she stated.<\/p>\n<p>&#8220;There is also an opportunity to strengthen the strategy\u2019s focus on commercialisation, as well as supporting AI innovation, more needs to be done to help businesses buy, integrate and scale AI solutions &#8211; this should be complemented by a clearer plan for growing leadership capability and supporting workforce adaptation &#8211; not just developing technical AI talent.&#8221;<\/p>\n<p>Meechan&#8217;s analysis is that AI adoption in Scotland remains uneven. According to the government\u2019s <em>Business Insights and Conditions Survey<\/em>, just over 30% of Scottish businesses were using AI in December 2025, with uptake strongest in the information and communication sector, at close to 60%. Micro businesses and non-digital SMEs are lagging behind, not due to a lack of interest, but because of limited resources and tight budgets, which mean even relatively small investments can feel risky.<\/p>\n<div id=\"attachment_3036\" style=\"width: 310px\" class=\"wp-caption alignleft\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-3036\" class=\"size-medium wp-image-3036\" src=\"https:\/\/www.thebusinessdesk.com\/_files\/images\/mar_26\/Karen-Meechan-CEO-ScotlandIS-1-scaled-e1774516973757-300x200.jpg\" alt=\"Karen Meechan, chief executive of ScotlandIS\" width=\"300\" height=\"200\" srcset=\"https:\/\/www.thebusinessdesk.com\/_files\/images\/mar_26\/Karen-Meechan-CEO-ScotlandIS-1-scaled-e1774516973757-300x200.jpg 300w, https:\/\/www.thebusinessdesk.com\/_files\/images\/mar_26\/Karen-Meechan-CEO-ScotlandIS-1-scaled-e1774516973757-1024x683.jpg 1024w, https:\/\/www.thebusinessdesk.com\/_files\/images\/mar_26\/Karen-Meechan-CEO-ScotlandIS-1-scaled-e1774516973757-768x512.jpg 768w, https:\/\/www.thebusinessdesk.com\/_files\/images\/mar_26\/Karen-Meechan-CEO-ScotlandIS-1-scaled-e1774516973757-1536x1024.jpg 1536w, https:\/\/www.thebusinessdesk.com\/_files\/images\/mar_26\/Karen-Meechan-CEO-ScotlandIS-1-scaled-e1774516973757-200x133.jpg 200w, https:\/\/www.thebusinessdesk.com\/_files\/images\/mar_26\/Karen-Meechan-CEO-ScotlandIS-1-scaled-e1774516973757-500x333.jpg 500w, https:\/\/www.thebusinessdesk.com\/_files\/images\/mar_26\/Karen-Meechan-CEO-ScotlandIS-1-scaled-e1774516973757-600x400.jpg 600w, https:\/\/www.thebusinessdesk.com\/_files\/images\/mar_26\/Karen-Meechan-CEO-ScotlandIS-1-scaled-e1774516973757.jpg 1702w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><p id=\"caption-attachment-3036\" class=\"wp-caption-text\"><strong>Karen Meechan, chief executive of ScotlandIS<\/strong><\/p><\/div>\n<p>&#8220;Across the board, most organisations are still using AI for productivity-focused tasks like content creation, administration, analytics and IT support &#8211; rather than for full-scale business transformation &#8211; that brings greater job risk exposure to more repeatable, admin or text-heavy roles,&#8221; Meechan explained.<\/p>\n<p>&#8220;There are risks on both sides: for firms that don\u2019t engage with AI at all, the danger is falling behind \u2013 on productivity, competitiveness, innovation and increasingly on talent attraction, as people want to work in organisations that are keeping pace with new technologies.<\/p>\n<p>&#8220;At the same time, there are also risks for those that move too quickly: without the right governance, skills and implementation, businesses can overestimate what current AI tools can deliver.&#8221;<\/p>\n<p>She added that there is obviously also a people dimension to this. &#8220;If organisations move too aggressively to cut roles in favour of AI, particularly in areas where the technology is still maturing, they risk having to rebuild that capability later if the AI doesn\u2019t perform as expected.&#8221;<\/p>\n<p>An early government action will be the launch of an expanded AI Adoption Programme aimed at SMEs. The first iteration, launched in 2025, was supported by nearly \u00a31m of public funding, with more than 500 <abbr title=\"Small and Medium-sized Enterprises\">SME<\/abbr>s engaged, 80 firms scoped early <abbr title=\"Artificial Intelligence\">AI<\/abbr> use cases and 120 senior leaders participating in leadership development.<\/p>\n<p>Neil Muir, a director at PwC, was part of the panel discussion on the government&#8217;s AI strategy, and said that a particular concern was SMEs potentially being left behind.<\/p>\n<p>&#8220;Due to their scale, do they have the right team in place to properly govern the tech, the costs can be prohibitive, especially in certain sectors,&#8221; he asked. &#8220;If these tools aren&#8217;t rolled out by the company, then there&#8217;s a worry about grey use of AI &#8211; using what they&#8217;ve got on their phone, which could lead to company IP [intellectual property] leaking out via open models.&#8221;<\/p>\n<p>Muir added that rather than attempting to up-skill the general population on AI, &#8220;we hit upon educating Scottish businesses as the focus &#8211; which enables cost savings, while up-skilling employees&#8221; and should help combat AI exhaustion.<\/p>\n<p>In the government&#8217;s report one of the case studies was EGG Lighting, a Scottish manufacturer of lighting solutions through remanufacture, smart controls and digital tracking. It stated that marketing teams used AI to generate first draft content and cut preparation time by around 60%, while assembly and workshop teams replaced paper-based processes with AI-assisted digital forms, saving up to 40 minutes per delivery and improving traceability. AI tools are actively used by staff, delivering an estimated \u00a340,000 to \u00a360,000 in cost avoidance and EGG has scaled output without increasing headcount, leading to faster product iteration.<\/p>\n<div id=\"attachment_3626\" style=\"width: 310px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-3626\" class=\"size-medium wp-image-3626\" src=\"https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/Alastair-Moore-e1776936710581-300x200.jpeg\" alt=\"Alastair Moore, investment director at PXN Group\" width=\"300\" height=\"200\" srcset=\"https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/Alastair-Moore-e1776936710581-300x200.jpeg 300w, https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/Alastair-Moore-e1776936710581-200x134.jpeg 200w, https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/Alastair-Moore-e1776936710581.jpeg 400w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><p id=\"caption-attachment-3626\" class=\"wp-caption-text\"><strong>Alastair Moore, investment director at PXN Group<\/strong><\/p><\/div>\n<p>Alastair Moore, investment director at PXN Ventures, welcomed the new AI strategy&#8217;s focus on Scotland\u2019s strengths &#8211; semiconductors, energy, quantum hardware, photonics &#8211; which align with areas where the venture capital firm sees commercial opportunity and where several portfolio companies are active.<\/p>\n<p>&#8220;Where it could be further developed is weaker in public sector execution: procurement still gives little preference to domestic or sovereign suppliers, meaning much AI spend continues to flow abroad, and there is limited clarity on how Scottish companies can compete at scale,&#8221; he opined. &#8220;Coupled with a lack of institutional private venture capital, this risks undercapitalising promising AI firms.&#8221;<\/p>\n<p>From an investor perspective, Moore stated that the best performers tend to be AI-native, sector-specific and integrated with their customers, using proprietary data to transform operations, while those facing challenges are often traditional software-as-a-service providers, reliant on narrow-use licensing models, where slowing hiring and rapidly-advancing generalist AI capabilities are creating pressure.<\/p>\n<p>On regulation, the government noted that the EU AI Act goes further than the scope and aims of the UK Government\u2019s interventions in relation to AI, with statutory obligations imposed on providers of general-purpose AI and the classification of certain models as presenting &#8216;systemic risk&#8217;. Holyrood therefore intends to advocate for UK-level regulation of AI &#8220;which addresses the need for Scottish ventures and businesses to be able to access European markets&#8221;.<\/p>\n<p>The government said that plans to publish a report on the scope and requirement for <abbr title=\"Artificial Intelligence\">AI<\/abbr> regulation in Scotland &#8211; following work with stakeholders, including industry, trade unions, community groups, academia and public sector partners &#8211; to explore emerging impacts and respond appropriately.<\/p>\n<p>Meanwhile, Chancellor Rachel Reeves\u2019 Mais Lecture in March set out a strategy to build sufficient computing power to &#8220;protect UK interests and avoid excessive dependencies on others&#8221;, establish a foothold and &#8220;compete fiercely in the areas where we have real strengths&#8221; &#8211; such as AI applications, chip designs and cyber security &#8211; &#8220;maximise the value added by AI to the wider economy and the public sector through accelerated adoption&#8221; and &#8220;equip working people with the tools they need to maximise the rewards and minimise the risks&#8221;.<\/p>\n<p>The UK Government announced that AI and quantum technologies will receive \u00a32.5bn, &#8220;anchoring the world\u2019s most promising AI and quantum companies in Britain&#8221;.<\/p>\n<div id=\"attachment_1452\" style=\"width: 310px\" class=\"wp-caption alignleft\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-1452\" class=\"size-medium wp-image-1452\" src=\"https:\/\/www.thebusinessdesk.com\/_files\/images\/jan_26\/Charandeep-Singh-BEM-Chief-Executive-Scottish-Chambers-of-Commerce-e1768906300577-300x265.jpg\" alt=\"The Scottish Chambers of Commerce's new chief executive, Charandeep Singh\" width=\"300\" height=\"265\" srcset=\"https:\/\/www.thebusinessdesk.com\/_files\/images\/jan_26\/Charandeep-Singh-BEM-Chief-Executive-Scottish-Chambers-of-Commerce-e1768906300577-300x265.jpg 300w, https:\/\/www.thebusinessdesk.com\/_files\/images\/jan_26\/Charandeep-Singh-BEM-Chief-Executive-Scottish-Chambers-of-Commerce-e1768906300577-1024x904.jpg 1024w, https:\/\/www.thebusinessdesk.com\/_files\/images\/jan_26\/Charandeep-Singh-BEM-Chief-Executive-Scottish-Chambers-of-Commerce-e1768906300577-768x678.jpg 768w, https:\/\/www.thebusinessdesk.com\/_files\/images\/jan_26\/Charandeep-Singh-BEM-Chief-Executive-Scottish-Chambers-of-Commerce-e1768906300577-200x177.jpg 200w, https:\/\/www.thebusinessdesk.com\/_files\/images\/jan_26\/Charandeep-Singh-BEM-Chief-Executive-Scottish-Chambers-of-Commerce-e1768906300577-500x441.jpg 500w, https:\/\/www.thebusinessdesk.com\/_files\/images\/jan_26\/Charandeep-Singh-BEM-Chief-Executive-Scottish-Chambers-of-Commerce-e1768906300577-600x530.jpg 600w, https:\/\/www.thebusinessdesk.com\/_files\/images\/jan_26\/Charandeep-Singh-BEM-Chief-Executive-Scottish-Chambers-of-Commerce-e1768906300577.jpg 1380w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><p id=\"caption-attachment-1452\" class=\"wp-caption-text\"><strong>The Scottish Chambers of Commerce&#8217;s new chief executive, Charandeep Singh<\/strong><\/p><\/div>\n<p>Charandeep Singh, chief executive of the Scottish Chambers of Commerce, commented:\u00a0&#8220;This focus on AI, closer ties with Europe and regional growth reflects the priorities we hear consistently from businesses across Scotland.<\/p>\n<p>&#8220;The priority now is delivery, businesses must see these commitments translated into practical support \u2013 from access to digital skills, to stronger links with European markets and clear pathways to commercialisation.&#8221;<\/p>\n<h3>Power and data infrastructure<\/h3>\n<p>In order for Scotland to reach its AI potential &#8211; much like its renewable energy potential &#8211; there is a lot of work to be done to scale the necessary infrastructure behind the clever tools. That means building larger capacity data centres, located close to the companies using them, with sufficient power and cooling resources.<\/p>\n<p>The government report stated that while many modern datacentres are significantly reducing water consumption, sustainable management of water resources remains a &#8220;critical consideration&#8221;. Scottish Water is therefore advising the industry on location decisions to support the most sustainable use of water, encouraging the reuse of treated wastewater, and promoting adoption of closed-loop systems to reduce overall demand.<\/p>\n<p>The government and its enterprise agencies are also developing the &#8216;Scottish Green Compute&#8217; proposition, while for identified sites with proximity to necessary infrastructure, the option of local authority-designated &#8216;Green AI-Ready&#8217; zones will be explored. &#8220;Subject to local authority decisions, where conditions are supportive, planning approvals could be utilised within Local Development Plans,&#8221; the report read.<\/p>\n<p>In February, <a href=\"https:\/\/www.thebusinessdesk.com\/scotland\/news\/1879-green-data-centre-refusal-raises-doubts-about-similar-plans\">a planned data centre in the South Gyle area of Edinburgh was rejected<\/a>, raising doubts about the fate of similar proposals going through the planning process elsewhere in Scotland. The City of Edinburgh Council refused to grant permission for the development, citing the various environmental concerns surrounding the application, with campaigners criticising the council\u2019s prior decision not to require an Environmental Impact Assessment. Developer Shelborn Drummond&#8217;s application will now likely be tested at Scottish Government appeal, acting as something of a test case for other planned developments.<\/p>\n<p>While grid infrastructure is an area of policy reserved to the UK Government, the National Energy Systems Operator (NESO)\u2019s Grid Connection Reform Process is &#8220;a welcome development&#8221;, according to the government, which stated that it is engaging with NESO and Westminster on its Connections Accelerator Service, to enable projects to be connected as soon as feasible.<\/p>\n<p>It cited the <a href=\"https:\/\/www.thebusinessdesk.com\/scotland\/news\/1698-3400-jobs-and-8.2bn-investment-as-lanarkshire-becomes-an-ai-growth-zone\">announcement in January<\/a> of Scotland\u2019s first AI Growth Zone in North Lanarkshire as a &#8216;step\u2011change&#8217;. Backed by \u00a38bn of private investment and designed in partnership with Scottish firms DataVita and CoreWeave, the site is set to deliver more than 3,400 new jobs, including 800 AI and digital infrastructure roles.<\/p>\n<p>The National Grid estimates that Scotland will host around 20% of future data centres, due to availability of land, water and a more temperate climate \u2013 not to mention a high percentage of renewable energy within the electricity supply.<\/p>\n<p>DataVita recently opened a new data centre in Glasgow in its parent company\u2019s office development, having previously expanded its Fortis facility in August 2022. Asanti &amp; Atos, Pulsant, iomart, CenterServ and Lumen operate small facilities across the country, while renewable energy firm Apatura is p<span style=\"font-size: 16px\">lanning several large-scale projects across Scotland, and Argyll Data Development is planning a &#8216;data centre campus&#8217; in Dunoon.<\/span><\/p>\n<div id=\"attachment_1699\" style=\"width: 310px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-1699\" class=\"size-medium wp-image-1699\" src=\"https:\/\/www.thebusinessdesk.com\/_files\/images\/jan_26\/DataVita-Danny-Quinn-scaled-e1770280319876-300x204.jpg\" alt=\"DataVita boss Danny Quinn\" width=\"300\" height=\"204\" srcset=\"https:\/\/www.thebusinessdesk.com\/_files\/images\/jan_26\/DataVita-Danny-Quinn-scaled-e1770280319876-300x204.jpg 300w, https:\/\/www.thebusinessdesk.com\/_files\/images\/jan_26\/DataVita-Danny-Quinn-scaled-e1770280319876-1024x697.jpg 1024w, https:\/\/www.thebusinessdesk.com\/_files\/images\/jan_26\/DataVita-Danny-Quinn-scaled-e1770280319876-768x523.jpg 768w, https:\/\/www.thebusinessdesk.com\/_files\/images\/jan_26\/DataVita-Danny-Quinn-scaled-e1770280319876-200x136.jpg 200w, https:\/\/www.thebusinessdesk.com\/_files\/images\/jan_26\/DataVita-Danny-Quinn-scaled-e1770280319876-500x340.jpg 500w, https:\/\/www.thebusinessdesk.com\/_files\/images\/jan_26\/DataVita-Danny-Quinn-scaled-e1770280319876-600x409.jpg 600w, https:\/\/www.thebusinessdesk.com\/_files\/images\/jan_26\/DataVita-Danny-Quinn-scaled-e1770280319876.jpg 1410w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><p id=\"caption-attachment-1699\" class=\"wp-caption-text\"><strong>DataVita boss Danny Quinn<\/strong><\/p><\/div>\n<p>Danny Quinn, managing director at DataVita, <a href=\"https:\/\/www.thebusinessdesk.com\/scotland\/news\/1879-green-data-centre-refusal-raises-doubts-about-similar-plans\">previously stated<\/a> that data centre design is evolving rapidly, noting that his company&#8217;s sites at the AI Growth Zone will consume no fossil fuels and run on renewable energy at a fraction of the carbon intensity of facilities in other parts of the UK.<\/p>\n<p>&#8220;But technology alone isn\u2019t enough &#8211; genuine community engagement and long-term local investment have to be part of the conversation from the start, not bolted on later &#8211; when communities understand both the national importance and the local benefit, these projects can earn the support they need,&#8221; he added.<\/p>\n<h3>Adoption analysis<\/h3>\n<p>Much has been made of AI replacing large parts of the workforce in the coming years, but evidence is patchy for this, bar a few high-profile cases like the chief executive of Klarna last year partially rolling back 700 job cuts linked to AI as result of reduced customer service quality.<\/p>\n<p>A briefing note from Oxford Economics at the start of this year suggested that jobs are already being lost in sectors vulnerable to AI automation, although firms don&#8217;t appear to be replacing workers with AI on a significant scale &#8220;and we doubt that unemployment rates will be pushed up heavily by AI over the next few years&#8221;. While a rising number of firms are pinning job losses on AI, other more traditional drivers of job layoffs are far more commonly cited. &#8220;What&#8217;s more, we suspect some firms are trying to dress up layoffs as a good news story rather than bad news, such as past over-hiring,&#8221; the consultancy firm stated.<\/p>\n<p>Oxford Economics went on to point out that if AI were already replacing labour at scale, productivity growth should be accelerating &#8211; but generally, it isn&#8217;t &#8211; although that could change quickly if AI continues to develop rapidly and take-up matches pace. &#8220;We&#8217;re sceptical that firms can quickly and seamlessly substitute workers with AI even in sectors where the potential for AI disruption is greatest,&#8221; it added.<\/p>\n<p>Recent research from Livingston James and EY suggested that while the majority of senior leaders in Scottish organisations are talking about AI, only a third have actually put a plan in place to harness its potential.<\/p>\n<p>Across surveys and interviews with more than 200 chief executives, non-executive directors and heads of function, covering organisations of all sizes across the private, public and third sectors in Scotland &#8211; but with the majority from the business community (71%) &#8211; the report found 36% have a formal AI strategy, with 63% still to develop one. Yet, 71% also said adoption of the technology is being discussed regularly at board level.<\/p>\n<div>\n<p>A major contributor to the lack of AI implementation appears to be uncertainty over who should be driving it, with respondents stating that operations or finance were responsible for AI in 16% and 12% of cases, respectively, but 8% have not assigned the technology to anyone, commenting on a lack of workforce planning and measurement frameworks.<\/p>\n<p>Perhaps surprisingly, organisations with fewer than 10 employees were most likely to have an AI strategy; at 59%. This was followed by 37% of large organisations, and 33% and 28% for medium and small-sized organisations, respectively.<\/p>\n<p>Ali Shaw, director at Livingston James, said:\u00a0&#8220;Given that responsibility lies predominantly with other functions &#8211; and, worryingly, in some cases with no one &#8211; CEOs will need to ensure that they have the right people around them to make the most of the opportunities AI presents.<\/p>\n<p>&#8220;That could mean involving senior tech executives more in areas like succession planning so that future leadership teams have the right level of technological knowhow to prepare for the big changes ahead.&#8221;<\/p>\n<div id=\"attachment_3627\" style=\"width: 310px\" class=\"wp-caption alignleft\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-3627\" class=\"size-medium wp-image-3627\" src=\"https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/Ali-Shaw-85-e1776936852336-300x200.jpg\" alt=\"Ali Shaw, director at Livingston James\" width=\"300\" height=\"200\" srcset=\"https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/Ali-Shaw-85-e1776936852336-300x200.jpg 300w, https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/Ali-Shaw-85-e1776936852336-1024x683.jpg 1024w, https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/Ali-Shaw-85-e1776936852336-768x512.jpg 768w, https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/Ali-Shaw-85-e1776936852336-200x133.jpg 200w, https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/Ali-Shaw-85-e1776936852336-500x334.jpg 500w, https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/Ali-Shaw-85-e1776936852336-600x400.jpg 600w, https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/Ali-Shaw-85-e1776936852336.jpg 1118w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><p id=\"caption-attachment-3627\" class=\"wp-caption-text\"><strong>Ali Shaw, director at Livingston James<\/strong><\/p><\/div>\n<\/div>\n<p>PwC&#8217;s survey of 4,454 CEOs in 95 countries at the end of last year, meanwhile, showed that despite widespread experimentation, only 12% of bosses said AI has delivered both cost and revenue benefits. Overall, a third reported gains in either cost or revenue, while 56% saw no significant financial benefit to date.<\/p>\n<p>The survey pointed to a growing divide between companies piloting AI and those deploying it at scale. Those reporting both cost and revenue gains are two to three times more likely to say they have embedded AI extensively across products and services, demand generation and strategic decision-making. Those that have embedded responsible AI frameworks and technology environments that enable enterprise-wide integration were also found to be three times more likely to report meaningful financial returns.<\/p>\n<p>Scottish PwC director Neil Muir said that AI takes the time out of tasks, not the people out of jobs. Internally, over the last three years, the firm has gone from one AI tool to several, with some moving beyond the experimentation phase. &#8220;Those moving fastest understand pain points in workflow, they have enough usable data, and a reason to trust and govern the outputs.&#8221;<\/p>\n<p>The issue of governance is crucial in the highly-regulated sectors which should be best suited to AI implementation, like professional and financial services.<\/p>\n<p>&#8220;The near term pattern is AI taking on contained pieces of work, with guardrails in place to make sure an agent only executes within boundaries &#8211; so that&#8217;s access, control and accountability &#8211; what data can it reach, what actions can it take and how do you monitor that,&#8221; Muir explained. &#8220;Claude, Copilot, Chat GPT, they all have versions of agentic tools, and while agents talking to agents won&#8217;t happen immediately because of these risks, it&#8217;s coming a lot faster than a lot of people realise; certainly faster than the proper governance and risk awareness is.&#8221;<\/p>\n<p>A recent Bank of Scotland <em>Business Barometer<\/em> showed that Scottish businesses integrating AI into their operations are reporting &#8216;significant financial benefits&#8217;, with 96% seeing increased productivity &#8211; the highest proportion of any UK nation or region &#8211; and 32% reporting higher profits over the past 12 months. Of those which reported a profit boost from using AI, 60% recorded an uplift of 11% or more, with a further 34% stating profits increased by 6% to 10%.<\/p>\n<p>The findings come as investment in AI accelerates, with nearly half (46%) of Scottish businesses confirming they have invested in AI. The research found that most firms spent less than \u00a325,000 (23%) to enhance their AI capabilities, followed by 9% of firms who spent between \u00a325,000 to \u00a3100,000, 5% spending between \u00a3100,000 to \u00a3250,000 and 9% spending \u00a3250,000 or more.<\/p>\n<p>Alongside these gains, Scottish businesses are investing in the skills needed to make AI adoption effective. The survey showed that just over a fifth of businesses have up-skilled their customer service teams (23%), while the same proportion have up-skilled their sales teams (23%).<\/p>\n<p>Martyn Kendrick, Scotland director at Bank of Scotland Commercial Banking, said: &#8220;Firms across the country recognise the strategic advantage that this technology can deliver, but 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.&#8221;<\/p>\n<div id=\"attachment_3497\" style=\"width: 310px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-3497\" class=\"size-medium wp-image-3497\" src=\"https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/Screenshot-2026-04-17-145908-e1776434405461-300x200.png\" alt=\"Gordon Davey, cloud technology and professional services leader at KPMG\" width=\"300\" height=\"200\" srcset=\"https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/Screenshot-2026-04-17-145908-e1776434405461-300x200.png 300w, https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/Screenshot-2026-04-17-145908-e1776434405461-200x133.png 200w, https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/Screenshot-2026-04-17-145908-e1776434405461.png 501w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><p id=\"caption-attachment-3497\" class=\"wp-caption-text\"><strong>Gordon Davey, cloud technology and professional services leader at KPMG<\/strong><\/p><\/div>\n<p>A similar study from\u00a0KPMG revealed\u00a0that 24% of private firms in Scotland see AI as a key area for investment, with 38% prioritising investment in the necessary workforce and skills development.<\/p>\n<p>Gordon Davey, cloud technology director at KPMG UK, commented: &#8220;Businesses should be preparing now for the safe and practical adoption of AI across their organisations &#8211; that means putting clear policies and standards in place so people can use AI tools confidently and securely.<\/p>\n<p>&#8220;We\u2019re already seeing many employees adopt AI with good intentions, but often on a &#8216;proceed until apprehended&#8217; basis, without fully understanding the risks around data privacy or intellectual property.&#8221;<\/p>\n<h3>Sector specifics<\/h3>\n<p>Research from the accountancy sector found that 72% of professionals fear that generative AI could produce errors or reach incorrect decisions, while 52% raised concerns about client data privacy and confidentiality.<\/p>\n<p>A year-long study commissioned by the Institute of Chartered Accountants of Scotland (ICAS), drawing on firm-wide surveys of more than 200 accounting professionals and 50 in-depth interviews, revealed that 74% reckon the technology speeds up the tasks they perform &#8211; with many highlighting quicker data extraction, document analysis and information cross-referencing &#8211; yet only 22% said this has translated into a substantial increase in their overall work rate.<\/p>\n<p>More than half of respondents (53%) turn to AI to write emails and edit text, while 46% use it to summarise meetings or documents and 33% rely on it to support spreadsheet or other software-based tasks.<\/p>\n<p>ICAS research lead Ewan McCall commented: &#8220;The message from our research is clear: people, not machines, must remain firmly in the driving seat of professional decision-making.<\/p>\n<p>&#8220;While Gen AI can help accountants work faster and handle many routine tasks more efficiently, the technology is only as effective as the information, supervision, and oversight behind it &#8211; weak inputs lead to weak outputs, which over time erode the trust that underpins accounting work and wider society.&#8221;<\/p>\n<div id=\"attachment_3498\" style=\"width: 310px\" class=\"wp-caption alignleft\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-3498\" class=\"size-medium wp-image-3498\" src=\"https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/Murray-McCall-scaled-e1776434477441-300x215.jpg\" alt=\"Murray McCall, managing partner at Anderson Strathern\" width=\"300\" height=\"215\" srcset=\"https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/Murray-McCall-scaled-e1776434477441-300x215.jpg 300w, https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/Murray-McCall-scaled-e1776434477441-1024x734.jpg 1024w, https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/Murray-McCall-scaled-e1776434477441-768x550.jpg 768w, https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/Murray-McCall-scaled-e1776434477441-200x143.jpg 200w, https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/Murray-McCall-scaled-e1776434477441-500x358.jpg 500w, https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/Murray-McCall-scaled-e1776434477441-600x430.jpg 600w, https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/Murray-McCall-scaled-e1776434477441.jpg 1340w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><p id=\"caption-attachment-3498\" class=\"wp-caption-text\"><strong>Murray McCall, managing partner at Anderson Strathern<\/strong><\/p><\/div>\n<p>As for the law, there was also widespread agreement that legal firms need to get AI adoption right first time to maintain trust in the sector.<\/p>\n<p>Murray McCall, managing partner of Scottish law firm Anderson Strathern, said: &#8220;We must recognise ourselves as integral to shaping AI adoption and speaking up about problems that are arising from this technology &#8211; namely how unregulated it currently is and the capacity to produce absurd responses.<\/p>\n<p>&#8220;Navigating the pace of change in technology is also a significant challenge, and it&#8217;s vital to strike a careful balance between maintaining a level of control to ensure proper integration, adopting robust policies and providing appropriate training so that client confidentiality is never jeopardised.&#8221;<\/p>\n<p>He explained that Anderson Strathern is evaluating processes and ensuring staff understand its guidance on using AI. The main focus is on building it into management systems and processes, while exploring options for making best use of institutional knowledge to create more efficiencies.<\/p>\n<p>Large parts of the legal sector are already heavily automated, including volume debt recovery, some aspects of residential conveyancing and personal injury claims. The market clearly sees it as being rife for disruption, as evidenced by Edinburgh-based lawtech firm Wordsmith AI hitting a $100m valuation just 18 months after launch; believed to be the fastest ever for a Scottish start-up.<\/p>\n<p>&#8220;Looking ahead, I&#8217;d say it&#8217;s less a question of &#8216;what areas are likely to be automated&#8217; and more a question of &#8216;to what degree will areas be impacted&#8217; &#8211; AI is rapidly altering what clients expect and what lawyers do,&#8221; said McCall. &#8220;For a knowledge-led profession, that means rethinking where our value lies and, as it stands, we see real value in expertise.&#8221;<\/p>\n<p>WordSmith AI chief executive Ross McNairn told TheBusinessDesk that his company&#8217;s revenue grew by more than 10 times in 2025, with more than half of that new business coming through word of mouth referrals.<\/p>\n<p>&#8220;When a general counsel at one company sees results and tells their counterpart at another, that&#8217;s the strongest validation we can get &#8211; enterprise teams like Financial Times and BT are on the platform with their lawyers using it daily &#8211; with some in-house teams reporting as much of an 80% cost reduction in external counsel spend,&#8221; he said. &#8220;Baillie Gifford are another great example &#8211; not exactly a firm that takes risks lightly, so that says a lot about where confidence in this technology has got to.&#8221;<\/p>\n<div id=\"attachment_3259\" style=\"width: 310px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-3259\" class=\"size-medium wp-image-3259\" src=\"https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/IMG_6163-e1775555076401-300x201.png\" alt=\"Wordsmith AI chief executive Ross McNairn\" width=\"300\" height=\"201\" srcset=\"https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/IMG_6163-e1775555076401-300x201.png 300w, https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/IMG_6163-e1775555076401-768x513.png 768w, https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/IMG_6163-e1775555076401-200x134.png 200w, https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/IMG_6163-e1775555076401-500x334.png 500w, https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/IMG_6163-e1775555076401-600x401.png 600w, https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/IMG_6163-e1775555076401.png 962w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><p id=\"caption-attachment-3259\" class=\"wp-caption-text\"><strong>Wordsmith AI chief executive Ross McNairn<\/strong><\/p><\/div>\n<p>When asked about risks and reticence in the market, McNairn said he tries to always put customer education and engagement first.<\/p>\n<p>&#8220;My co-founder and I are both lawyers, so we have been on both sides of the table, and we now have a team of over 20 former lawyers whose entire job is to work alongside our customers, teaching them how to get the most out of the platform; not just onboarding them and walking away.<\/p>\n<p>&#8220;We call this role the legal engineer, and honestly I think it&#8217;s the hottest job that&#8217;s going to exist for in-house legal professionals over the next decade &#8211; lawyers who know how to implement Al in a way that drives real efficiency for the business are going to be extraordinarily valuable,&#8221; he continued, adding: &#8220;If you can get something turned around in an hour instead of a week, that value compounds every single time it happens; across every team, every deal, every request that comes through the door.&#8221;<\/p>\n<p>Within highly-regulated sectors such as law, accountancy and financial services, the risk of falling behind competitors has to be balanced with the risk of falling foul of the rules.<\/p>\n<p>Edinburgh-based consultancy Optima Partners recently pivoted towards AI and now advises clients within these sectors to help join up disparate data across things like marketing, HR and finance to improve internal and external communications.<\/p>\n<p>Chief executive Chris Foley reckons the tech has been largely embraced, but with the need for proper guardrails to guarantee outcomes deterministically. &#8220;The danger is creating &#8216;data space junk&#8217; by not realising who the beneficiaries are, storing more and more unnecessary information,&#8221; he explained.<\/p>\n<p>&#8220;Within life and pensions for instance, the number of times that customers would interact has been quite sparse, so the amount of data captured compared to retail banks is more shallow &#8211; but that&#8217;s changing as things move towards investment-based pensions,&#8221; Foley went on. &#8220;There&#8217;s certainly a challenge from fintech disruptors, which are unencumbered by legacy systems, but it&#8217;s all about improving ways of working &#8211; we saw this in the pandemic with the acceleration of vaccine production, AI can help improve efficiency by creating a universal semantic layer to connect data assets between different functions.&#8221;<\/p>\n<div id=\"attachment_3500\" style=\"width: 310px\" class=\"wp-caption alignleft\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-3500\" class=\"size-medium wp-image-3500\" src=\"https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/Chris-Foley-CEO-at-Optima-Partners-1-1-scaled-e1776435669595-300x200.jpg\" alt=\"Chris Foley, chief executive at Optima Partners\" width=\"300\" height=\"200\" srcset=\"https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/Chris-Foley-CEO-at-Optima-Partners-1-1-scaled-e1776435669595-300x200.jpg 300w, https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/Chris-Foley-CEO-at-Optima-Partners-1-1-scaled-e1776435669595-1024x684.jpg 1024w, https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/Chris-Foley-CEO-at-Optima-Partners-1-1-scaled-e1776435669595-768x513.jpg 768w, https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/Chris-Foley-CEO-at-Optima-Partners-1-1-scaled-e1776435669595-1536x1026.jpg 1536w, https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/Chris-Foley-CEO-at-Optima-Partners-1-1-scaled-e1776435669595-200x134.jpg 200w, https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/Chris-Foley-CEO-at-Optima-Partners-1-1-scaled-e1776435669595-500x334.jpg 500w, https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/Chris-Foley-CEO-at-Optima-Partners-1-1-scaled-e1776435669595-600x401.jpg 600w, https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/Chris-Foley-CEO-at-Optima-Partners-1-1-scaled-e1776435669595.jpg 1707w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><p id=\"caption-attachment-3500\" class=\"wp-caption-text\"><strong>Chris Foley, chief executive at Optima Partners<\/strong><\/p><\/div>\n<p>Dr Alexandra Birch-Mayne is chair of multilingual natural language processing at the University of Edinburgh, as well as a co-founder and chief scientist at fintech firm Aveni, which last year secured \u00a311m in a Series A funding round.<\/p>\n<p>Having built up a customer base for its Aveni Protect quality assurance automation product, mainly among the wealth management sector, as LLMs improved in recent years, the start-up developed Aveni Assist to help financial firms automate things like updating client relationship systems and draft marketing emails. It now has more than 100 customers across the two products and is working on an AI agent which checks on the safety and efficacy of other agents being used by financial firms.<\/p>\n<p>&#8220;In our latest funding round Lloyds and Nationwide invested in a project to build an LLM for finance &#8211; FinLLM &#8211; which is going from web crawling to distilling high performance models,&#8221; Birch-Mayne explained. &#8220;We&#8217;re now focusing on what the commercial case is and thinking about deploying through a modular, scalable agentic platform.<\/p>\n<p>&#8220;Agent Assure is essentially an agent which checks other agents, and we&#8217;re working with Lloyds to develop the first minimum viable project, which should complete by the end of May, following a development phase in the FCA&#8217;s AI sandbox earlier this year.&#8221;<\/p>\n<p>She commented that the UK&#8217;s financial regulators have been trying to support the development of safe AI, but that nobody has a complete playbook of how to do this.<\/p>\n<p>&#8220;There are a lot of different aspects of security which have to be taken into account &#8211; our current focus is checking whether the models say things that are compliant &#8211; but there&#8217;s also protection against things like prompt injection, making sure tools don&#8217;t get switched for less safe ones, and then making sure these bots work for vulnerable demographics that must be protected,&#8221; Birch-Mayne continued, adding: &#8220;As we try to map existing processes onto combinations of agents and humans, ultimately some person still needs to take responsibility for safety; there needs to be some form of accountability.&#8221;<\/p>\n<h3>Emerging risks and opportunities<\/h3>\n<p>The AI landscape is shifting so rapidly that many of these assertions may be rendered redundant in the coming weeks or months, but as of the middle of April 2026, funding rounds and valuations of the big model and chip makers are ballooning at an alarming rate, causing many economic commentators to urge caution.<\/p>\n<p>Paul Diggle, chief economist at Aberdeen Group, recently set out several scenarios in its second quarter global economic outlook. One of these &#8211; albeit given only a 15% probability &#8211; is that AI-related spending collapses, tech stocks fall sharply and private credit defaults surge, triggering a US recession similar to the dotcom bust. Another of the firm&#8217;s scenarios is that rapid advances in AI mean it substitutes for a wide variety of service-sector work, raising unemployment, while central banks are slow to react, perhaps because of a misdiagnosis that rising unemployment reflects a higher natural rate.<\/p>\n<p>&#8220;Eventually, policy rates fall to the effective lower bound, but the economy is already in a liquidity trap,&#8221; wrote Diggle. &#8220;Fiscal positions deteriorate, as income tax takes decline, low marginal propensities to consume mean the higher incomes enjoyed by capital owners are not spent on new wants and needs that would create new employment.&#8221;<\/p>\n<div id=\"attachment_3499\" style=\"width: 310px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-3499\" class=\"size-medium wp-image-3499\" src=\"https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/Screenshot-2026-04-17-150426-e1776434733228-300x200.png\" alt=\"Shannon Vallor, Baillie Gifford chair in the ethics of data and AI at the University of Edinburgh\" width=\"300\" height=\"200\" srcset=\"https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/Screenshot-2026-04-17-150426-e1776434733228-300x200.png 300w, https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/Screenshot-2026-04-17-150426-e1776434733228-200x134.png 200w, https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/Screenshot-2026-04-17-150426-e1776434733228.png 376w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><p id=\"caption-attachment-3499\" class=\"wp-caption-text\"><strong>Shannon Vallor, Baillie Gifford chair in the ethics of data and AI at the University of Edinburgh<\/strong><\/p><\/div>\n<p>Away from job concerns, there is also the issue of security risks from uncontrolled use of agentic AI platforms like Openclaw and people using AI to &#8216;vibe code&#8217; without knowing how to check the quality or safety of that new code before implementing it in critical business environments, according to professor Shannon Vallor, Baillie Gifford chair in the ethics of data and artificial intelligence at the University of Edinburgh.<\/p>\n<p>&#8220;Trust in the potential benefits of AI use, especially by SMEs which want to expand their capabilities with it, can be quickly undermined by people\u2019s lack of knowledge of how to use it responsibly,&#8221; she stated, pointing out that failing to partner effectively with staff on AI implementation is one reason why so many businesses are still seeing limited productivity gains.<\/p>\n<p>Vallor recently launched an online, open access course designed to help business leaders assess AI, which she believes still isn&#8217;t the right option for all companies.<\/p>\n<p>&#8220;There are definitely some small businesses that are not going to see much value from it, or where the risks outweigh the potential gains &#8211; but your employees or clients might be using it anyway, in ways that could cause your business huge problems down the road if you\u2019re not aware, or your competitors may be using it, in ways that will really change your industry, for better or for worse,&#8221; she said.<\/p>\n<p>On 15 April, UK technology secretary Liz Kendall wrote an open letter to businesses about AI cyber threats, in particular warning about Anthropic&#8217;s new Mythos model. Launched on 7 April, its ability to find and exploit software vulnerabilities meant that before general release, it is being security tested with 50 multi-national firms so they can assess their defences. OpenAI is also scaling up its Trusted Access for Cyber programme to allay similar concerns with its next model.<\/p>\n<p>Testing by the Department for Science, Innovation and Technology, alongside the AI Security Institute (AISI), found Mythos to be &#8220;substantially more capable at cyber offence&#8221; than any model previously assessed. The AISI assessed that frontier capabilities are doubling every four months, compared to every eight months previously.<\/p>\n<div id=\"attachment_3628\" style=\"width: 310px\" class=\"wp-caption alignleft\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-3628\" class=\"size-medium wp-image-3628\" src=\"https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/Liz_Kendall_Official_Cabinet_Portrait_July_2024_cropped_2-e1776937480506-300x200.jpg\" alt=\"Liz Kendall, Secretary of State for Science, Innovation and Technology\" width=\"300\" height=\"200\" srcset=\"https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/Liz_Kendall_Official_Cabinet_Portrait_July_2024_cropped_2-e1776937480506-300x200.jpg 300w, https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/Liz_Kendall_Official_Cabinet_Portrait_July_2024_cropped_2-e1776937480506-1024x683.jpg 1024w, https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/Liz_Kendall_Official_Cabinet_Portrait_July_2024_cropped_2-e1776937480506-768x512.jpg 768w, https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/Liz_Kendall_Official_Cabinet_Portrait_July_2024_cropped_2-e1776937480506-1536x1024.jpg 1536w, https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/Liz_Kendall_Official_Cabinet_Portrait_July_2024_cropped_2-e1776937480506-200x133.jpg 200w, https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/Liz_Kendall_Official_Cabinet_Portrait_July_2024_cropped_2-e1776937480506-500x333.jpg 500w, https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/Liz_Kendall_Official_Cabinet_Portrait_July_2024_cropped_2-e1776937480506-600x400.jpg 600w, https:\/\/www.thebusinessdesk.com\/_files\/images\/apr_26\/Liz_Kendall_Official_Cabinet_Portrait_July_2024_cropped_2-e1776937480506.jpg 1608w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><p id=\"caption-attachment-3628\" class=\"wp-caption-text\"><strong>Liz Kendall, Secretary of State for Science, Innovation and Technology &#8211; credit: Lauren Hurley<\/strong><\/p><\/div>\n<p>&#8220;The trajectory is clear and therefore it is vital that we are prepared for frontier AI model capabilities to rapidly increase over the next year, and plan accordingly for that outcome,&#8221; read the letter, adding that government action alone will not be enough. &#8220;Every business in the UK has a part of play, criminals will not just target government systems and critical infrastructure, they will target ordinary companies, of every size, in every sector.&#8221;<\/p>\n<p>Kendall concluded: &#8220;We are entering a period in which the pace of technological change may test every institution in the country, the businesses that act now &#8211; that treat cyber security as an essential part of running a modern company, not an optional extra &#8211; will be the ones best placed to thrive through it and seize its advantages.&#8221;<\/p>\n<p>As Anthropic prepares to release Mythos across UK financial institutions, the Financial Conduct Authority (FCA), Treasury and the National Cyber Security Centre have all held discussions with the industry regarding the potential risks to critical infrastructure. Meanwhile, the European Central Bank is preparing to meet with eurozone banks to assess the risks posed by the preview model.<\/p>\n<p>Just this week, the FCA announced that Scottish Widows, Barclays, Experian and UBS have been chosen to live test AI applications to &#8220;support safe and responsible deployment&#8221;. The regulator said its initiative should help explore key questions around risk management and live monitoring.<\/p>\n<p>&#8220;Applications reflect the fast-evolving nature of the technology, with a diverse range of AI models underpinning use cases \u2013 from agentic AI and small language models to emerging solutions such as neurosymbolic AI,&#8221; read a statement, with testing including both customer-facing and business\u2011to\u2011business use cases like AI-enabled targeted support for investments, credit score insights for consumers, agentic payments and anti-money laundering detection.<\/p>\n<p>The FCA will also publish a Good and Poor Practice report for AI in financial services later this year to support firms in the safe adoption of the developing technology.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>We go deep into the ubiquitous cover-all tech term to see what and where Scottish businesses are adopting<\/p>\n","protected":false},"author":278857,"featured_media":3639,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[137137,50204],"coauthors":[137126],"class_list":["post-2843","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","category-technology","tag-featured-story","tag-scotland","tag-top-story"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.9 - 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