North West businesses say greater AI adoption will drive local growth

Nearly two-thirds (64%) of North West businesses believe greater AI adoption will be a major driver of local economic growth.

Of the 62% of the region’s firms that are already using AI, 79% say it has increased their productivity, while 89% say it has increased their profitability – the highest proportion of any UK nation or region. Firms are most commonly using AI platforms to improve their efficiency (69%) or to analyse data and make better-informed decisions (42%).

Looking ahead, more than half (55%) of North West firms plan to invest more in AI in the next year, with more than a quarter (27%) of non-adopters planning to use it for the first time. Meanwhile, nearly one in six businesses (14%) plan to create new AI-specific roles.

Firms said a desire to use AI to help grow their client base (49%) and new or further increases to profitability (42%) were the biggest drivers behind their future investment plans. Companies also said that having a better understanding of the technology and its benefits (38%), along with inspiration from other businesses (21%), would help facilitate even more investment.

The Business Barometer, which surveys 1,200 businesses monthly and which has been running since 2002, provides early signals about UK economic trends both regionally and nationwide.

Chris Whittle, area director in the North West at Lloyds, said:“This response from North West businesses highlight how just how transformative AI can be.

“We have a long history of innovation and enterprise in the North West and there’s a clear appetite among our firms to continue investing in this technology. With businesses seeking more AI-related insight and examples of best practice from their peers, ever-closer collaboration and knowledge-sharing between our region’s businesses could really help maximise the benefits for all.”