The majority of East of England 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.
More than three in five (61%) East of England businesses believe greater AI adoption will be a major driver of local economic growth.
Of the 42% of the East’s businesses that already use AI, 92% have seen it increase their productivity – the second-highest proportion of any UK nation or region – while 87% say it has improved their profitability. Firms are most commonly using AI platforms to improve efficiency (69%) or to analyse data and make better-informed decisions (42%).
Looking ahead, 79% of businesses in the region plan to invest more in AI over the next year, with just over a fifth of non-adopters (22%) planning to use the technology for the first time. Meanwhile, more than one in five (22%) East of England firms plan to create new AI-specific roles.
Firms said a desire for new or further increases to productivity (38%), or using the technology to help grow their client base (35%), were the biggest drivers behind their future investment plans. Businesses also said that having a better understanding of the technology and its benefits (52%), along with financial support (13%), 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.
Kirsty Sadler, regional director for the East of England at Lloyds, said: “Most East of England businesses that are already using AI are seeing benefits in terms of productivity and profitability: both two key drivers of growth.
“Encouragingly, many businesses are planning follow-on investments in the technology and as many as one in five non-adopters will be using it by this time next year. Sharing knowledge, skills and experience will be key to fully capitalising on the technology’s potential for our local economy.”
