Almost two-thirds of Scottish businesses now using AI

Almost two-thirds of Scottish businesses are now using artificial intelligence, with a majority of firms in every major sector reporting use of the technology for the first time, according to the latest Scottish Business Monitor produced by the Fraser of Allander Institute, at the University of Strathclyde.

The survey sampled over 300 firms in June from all 32 local authorities across Scotland’s economy.

64% of surveyed firms had used AI in the previous three months, up from around half in the previous quarter.

The use of AI remains highest among Services firms, at 72%, but has now also passed the halfway mark in Construction, at 55%, and Manufacturing and Production, at 54%. This is the first time a majority of firms across all broad sectors have reported using AI, suggesting that the technology is becoming increasingly widespread across the Scottish economy.

Among businesses already using AI, 94% reported using it for day-to-day tasks. Around three-quarters also said they used AI for role-specific tasks, graphic design and branding, specialist advice and business planning, while around seven in ten used it to support decision-making and future planning.

However, while AI adoption is widespread, most firms are not yet using the technology intensively. Across all business activities, firms were more likely to report low or moderate use of AI than significant use, indicating that for many businesses the technology remains a supporting tool rather than something deeply embedded across their operations. Many firms now use AI, but most are still doing so in a relatively light-touch way.

The quarterly survey also examined business sentiment in Q2 2026 and the outlook for the year ahead. It found:

• Businesses have also become somewhat less pessimistic about the economic outlook. The share expecting very weak growth over the next 12 months fell to 27%, from 34% in the previous quarter. However, only 2% expect growth to be strong or very strong.
• Overall business sentiment rose to a net balance of 10%, above the post-pandemic average, while sales, new business activity, turnover and employment all improved compared with the previous quarter.
• Firms continue to report exceptionally high levels of concern about economic and political uncertainty, with 98% identifying economic and business uncertainty as a significant concern and 94% citing political uncertainty. These concerns now rank above more traditional business constraints such as staffing availability and access to credit.
• Cost pressures remain widespread, although there are some signs of moderation. 86% of firms reported higher overall business costs during the quarter, while 88% expect costs to rise over the next six months. Both figures were lower than in the previous quarter.

Mairi Spowage, Director of the Fraser of Allander Institute at the University of Strathclyde, said:

“The latest Scottish Business Monitor provides encouraging signs that business conditions are improving. Activity, employment and sentiment have all strengthened, and businesses have become less pessimistic about future growth.”

“However, the survey also highlights a clear disconnect between improving conditions today and firms’ willingness to invest for the future. High levels of economic and political uncertainty continue to weigh on business decision-making, despite relatively few firms citing access to finance as a major challenge.”

“At the same time, AI adoption is becoming increasingly widespread across Scotland’s economy. The key question is no longer whether businesses are using AI, but how deeply the technology can be integrated into business processes to support productivity and long-term growth.”

You can read the full report here.