The majority of North East 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 (64%) of the North East’s firms believe greater AI adoption will be a major driver of local economic growth.
Of the 52% of the region’s firms currently using AI, 87% say it has increased their productivity, and 85% say it has improved their profitability. Firms are most commonly using off-the-shelf AI platforms to improve efficiency (57%) or to automate some of their processes (42%).
Looking ahead, one in five (20%) North East businesses plan to invest more in AI over the next year, with 37% of non-adopters planning to use it for the first time. Just over one in ten local firms (13%) also plan to create new AI-specific roles.
North East businesses said a push for new or further increases to productivity (51%) or profitability (42%), as well as a desire to grow their client base (36%), were the biggest drivers behind their future investment plans. Companies also said that having a better understanding of the technology and its benefits (42%) and inspiration from other businesses (26%) 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.
Martyn Kendrick, regional director for the North East at Lloyds said: “Here in the North East, businesses are seeing AI as a real avenue to economic growth. And that’s a view that’s likely shaped by their own positive experiences. Most of the companies already using AI are telling us the same thing: it’s boosting both their productivity and their bottom line.
“To help maximise the impact the technology could have, there’s clearly appetite for more collaboration and knowledge-sharing between firms. By sharing what works – the practical lessons and real-world examples – our community can help more businesses progress on their AI journey and unlock everything it has to offer.”