The majority of Welsh firms believe AI adoption will be a key growth driver in the country’s economy, according to Lloyds’ Business Barometer, as many report AI-related increases in productivity and profitability.
More than three in five (63%) Welsh businesses believe greater AI adoption will be a major driver of local economic growth.
Of the 61% of the country’s businesses already using AI, 81% say it has increased their productivity, while 80% say it has improved their profitability. Firms are most commonly using AI platforms to improve efficiency (71%) or to analyse data and make better-informed decisions (36%).
Looking ahead, 24% of Welsh businesses plan to invest more in AI over the next year and more than a fifth (22%) plan to create new AI-specific roles.
Firms said the desire to use the technology to help grow their client base (39%) and to drive new or further increases in productivity (36%) were the biggest drivers behind their future investment plans. Companies also said that having a better understanding of the technology and its benefits (41%) and instances of their competitors using AI (18%) 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.
Samantha Noble, area director for Wales at Lloyds, said: “Welsh businesses identify AI as an avenue for local growth, which perhaps reflects their own success with it – the overwhelming majority of firms already using the technology have seen higher productivity and profitability.
“Sharing knowledge and experience will be critical to helping more firms start applying it, and ultimately realising the full potential of the technology is realised.”
