Nearly a quarter of North West businesses intend to adopt artificial intelligence (AI) in the next 12 months, according to new research.
As leaders from across data science and AI met at the fifth annual AI UK conference last week – hosted by the Alan Turing Institute – North West businesses have set out their intentions for adopting AI in 2025.
The Ambition 2025 report, published by law firm Pannone Corporate, found that 24% of regional businesses have ranked AI as a top priority for 2025. More than a third of businesses (34%) stated that they want to push boundaries and set new standards in innovation in their sector over the next 12 months. Other priorities in the top three were wealth creation and expansion into international markets.
Unsurprisingly, 31% of North West businesses are investing in new technology and digital transformation this year, with a further third going beyond that and developing their own technology in-house. In addition, more than a quarter (27%) are currently working with incubators and regional hubs, such as Atom Valley.
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Danielle Amor (pictured), legal director in the commercial services team at Pannone, said: “There’s no doubt that AI is developing at pace, with AI UK a perfect showcase of what’s on the horizon.
“The difficulty legislators currently face is how to ensure regulation keeps up with the speed of change. With the EU, the US and China taking wildly divergent approaches, the future direction of AI in the UK hangs in the balance. Businesses are clearly showing appetite for change, adopting new ways of working that incorporate AI, but there is also concern around what this could mean for the future jobs market and independent thought.
“The real drivers for businesses centre around improving efficiencies, reducing the administrative burden that hampers certain roles and utilising product development tools.”
Despite more than a third of businesses (35%) admitting that they think AI will replace jobs, at the same time companies are also using technology to drive training and development (34%), with the same number of businesses using it to enhance recruitment.
Amor added: “There’s still a huge amount of uncertainty over AI – not just in terms of how it’s regulated and what innovations will be developed, but also how SMEs can harness it in their day-to-day operations.
“For SMEs without the budget for in-house development of AI systems, the question is how best to embrace existing products to fast track their own ambitions and achieve growth, whilst remaining compliant with the existing regulatory regime and realising cost savings.”
Through a combination of research and in-depth interviews, Ambition 2025 aims to understand the key drivers of growth, as well as the motivations, priorities and challenges for regional companies that make up the North West business community.
A survey of 200 regional businesses with a turnover of between £20 million and £300 million was also carried out in conjunction with the report.
