The majority of East Midlands firms believe AI adoption will be a key growth driver in their local economy, according to Lloyds’ Business Barometer, as many report AI-related increases in productivity and profitability.
Nearly two-thirds (65%) of East Midlands firms believe greater AI adoption will be a major driver of local economic growth.
Of the 71% of East Midlands businesses that already use AI, 81% have seen it increase their productivity, and 75% say it has improved their profitability. Firms are most commonly using AI platforms to improve efficiency (67%) or to analyse data and make better-informed decisions (36%).
Looking ahead 58% of businesses in the region plan to invest more in AI over the next year, with just over a fifth (21%) of non-adopters planning to use the technology for the first time. More than half (56%) of businesses also plan to introduce new AI skills training for staff, while 46% will expand existing training programmes.
Firms said the desire to grow their client base (47%) or to drive new or further productivity increases (42%) were the biggest drivers behind their future investment plans. Companies also said that having a better understanding of AI and its benefits (37%) and inspiration from other firms (31%) 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.
Dave Atkinson, regional director for the East Midlands at Lloyds, said: “AI is already making a real difference for many East Midlands businesses, boosting productivity, increasing profitability, and helping leaders make smarter, faster decisions. And businesses clearly see how these advantages could support wider economic growth.
“With one in five non-adopters expected to be using the technology this time next year, momentum is clearly building. Sharing knowledge, skills and experience will help maximise its potential.”
