West Midlands businesses say greater AI adoption will drive local growth  

The majority of West 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. 

Two thirds (66 per cent) of firms in the West Midlands believe greater AI adoption will be a major driver of local economic growth. 

Of the 67 per cent of the region’s businesses already using AI, 79 per cent say it has increased their productivity, and 69 per cent say it has improved their profitability.

Firms are most commonly using off-the-shelf AI platforms to improve efficiency (69 per cent), while a third (33 per cent) have developed their own AI software to automate some of their processes.  

Looking ahead, 54 per cent of West Midlands businesses plan to invest more in AI over the next year, with more than a quarter (27 per cent) of non-adopters planning to use it for the first time.

Meanwhile, more than a fifth (22 per cent) plan to create new AI-specific roles.  

Firms said driving new or further increases to productivity (45 per cent), profitability (42 per cent) and helping to attract and retain talent (31 per cent) were the biggest drivers behind their future investment plans.

Companies also said that having a better understanding of the technology and its benefits (45 per cent) and inspiration from other businesses (24 per cent) 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 (pictured), regional director for the West Midlands at Lloyds, said: “There’s a clear and growing buzz around AI among businesses in the West Midlands – so much so that a significant proportion are developing their own in-house AI solutions.  

“As firms look to the next stage in their AI journey, it’s clear they’d value even more knowledge around the technology and examples of great practice. Close collaboration within our community will be key to helping spread, and deepen, the benefits on offer.”