Scotland's Artificial Intelligence strategy 2026-2031

Case for Change

Seizing Scotland’s AI Opportunity

Artificial intelligence is advancing rapidly and offers enormous economic potential. GC Insight has estimated that, with the right investment and leadership across our economy, there is scope for AI to generate more than an additional £23 billion in annual GDP by 2035, with a potential cumulative additional GDP generated of £140.75 billion over the period 2025 to 2035^[28].

The Office for Budget Responsibility anticipates that productivity benefits at the UK level could begin to materialise within the next decade as adoption scales^[29]. Rapid developments in agentic and autonomous AI show how quickly new capabilities are emerging. Yet adoption remains uneven. Only 30.7% of businesses currently use AI, and many leaders report low confidence in adopting these tools safely and effectively^[30].

At the same time, demand for public services is rising amid tightening public finances. AI has already shown promise in enabling preventative approaches, improving planning, reducing costs and supporting frontline decision‑making. Used well, it can improve outcomes and focus capacity where it is most needed. Scotland must innovate in the adoption of AI within public services but do so carefully and transparently so that we maintain public trust.

Data is critical but Scotland’s public sector data is often fragmented and difficult to access. Improving data sharing and governance is essential, not to drive unchecked innovation but to support safer, more effective services and research which will ultimately make a difference to people’s lives. Other countries are moving quickly to modernise their data architecture and Scotland must utilise its data assets for good while ensuring trust, privacy and high ethical standards are maintained.

The global environment is volatile and competitive. A worldwide innovation race is underway, and emerging international standards – including the OECD AI principles^[31] and the EU AI Act^[32] – are shaping expectations of fairness, transparency and safety. Scotland must promote itself internationally and pursue research, business and inter‑governmental collaboration where this adds value. We will seek to influence, and remain aligned with, evolving principles and standards so that organisations can innovate with confidence and maintain access to key markets.

AI also places new demands on our critical national infrastructure. Scotland’s strengths in renewable energy provide a strong platform, but targeted action is needed to ensure AI develops in a sustainable, inclusive and environmentally responsible way. Choices need to be made about the allocation of power and the ability of AI to transform our economy and improve public services and outcomes will be critical in those judgements.

Scotland has a strong research base, but investment and global partnerships are required so that our research continues to have global impact and translates into commercial opportunities, particularly for start‑ups and scale‑ups. Scotland has a vibrant entrepreneurial ecosystem and with support from our economic development agencies we can both stimulate new AI start-ups and support the application of AI to innovation and productivity improvements across the wider business base. In parallel, we will address skills shortages at all levels so people and businesses can benefit from the opportunities AI creates.

The case for change is clear. Scotland must act now to ensure that AI is introduced in ways that are safe, fair and focused on public benefit. This Strategy sets out how Scotland will do this, harnessing the potential of responsible AI to improve outcomes across our economy and at every level in our society.