Businesses back AI adoption to fuel growth

Businesses across the North East and Yorkshire are increasingly embracing artificial intelligence (AI) as a tool for driving future growth.

According to new regional insights from Lloyds’ Business Barometer, confidence is building around AI’s potential to boost productivity, profitability and local economies. 

In the North East, almost two-thirds of firms believe wider AI adoption could be a major catalyst for growth, with over half already putting the technology to work – most often to improve efficiency or automate processes. 

The vast majority of these early adopters say they are seeing results: 87 per cent report improved productivity, while 85 per cent say it has made them more profitable.

Looking ahead, one in five North East businesses plan to increase their AI investment over the next year, with 37 per cent of current non-users looking to adopt it for the first time.

Martyn Kendrick, regional director SME banking, Scotland, North East and Yorkshire 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.”

Yorkshire businesses tell a similar story. 

Just over half of businesses surveyed said AI will be key to local economic growth, and 56 per cent are already using it – primarily for data analysis and more informed decision-making. 

Again, 85 per cent reported gains in both productivity and profitability, while more than half are planning further investment and 13 per cent expect to create new AI-focused roles.

Martyn added: “Yorkshire’s businesses are viewing AI as a key driver of local economic growth. 

“Among companies already using AI, the vast majority report gains in both productivity and profitability.” 

Across both regions, firms said the main drivers for adoption were boosting efficiency, improving margins and growing their customer base. 

Many also said better understanding of the technology – and seeing how peers are using it – were key to unlocking further investment.

Martyn added: “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.” 

Lloyds’ Business Barometer, which has tracked UK business sentiment since 2002, surveys 1200 companies monthly, offering early insight into UK economic trends at both regional and national levels.

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