South East businesses say greater AI adoption will drive local growth
The majority of South 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.
Three in five (60%) South East businesses believe greater AI adoption will be a major driver of local economic growth.
Of the 53% of the region’s businesses already using AI, nearly three quarters (74%) have seen it increase their productivity, and 59% say it has improved their profitability. Firms are most commonly using AI platforms to improve efficiency (69%) and to analyse data to make better-informed decisions (27%).
Looking ahead, 72% of South East businesses plan to invest more in AI over the next year, and two in five (40%) non-adopters plan to use the technology for the first time. Meanwhile, more than one in ten (12%) local businesses plan to create new AI-specific roles.
New or further increases to productivity (45%) or profitability (41%) are the biggest drivers behind firms’ future AI investment plans. Meanwhile, companies say that having a better understanding of AI and its benefits (44%), along with inspiration from other businesses (20%), would help facilitate even more investment in the technology.
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.
Amanda Dorel, regional director for the South East at Lloyds, said: “These findings underline the real potential businesses see in AI to help grow the South East’s economy.
“A lot of the region’s firms are planning to invest more in the technology – and many say they’d go even further if they better understood how it could actually help them and if they could learn from real examples of it working for others. Sharing knowledge and best practice within our local community, and beyond, will be critical to making the most of what AI has to offer.”