Scotland's Technology Council 2025-26 Report

Risks

The Council has identified a number of risks to achieving the aims set out in this report.

1. Strengthening the Skills Pipeline and Education System

A coherent national AI strategy for education — supported by a sustained, long-term skills investment pipeline — is essential to ensure Scotland can develop, attract, and retain the talent required to compete globally. This includes integrating AI literacy across all levels of education and aligning curricula with rapidly evolving industry needs.

2. Infrastructure Requirements for Data Centres and Digital Capacity

The development of data centres will depend on the availability of sufficient power, resilient digital connectivity, and broader enabling infrastructure. Ensuring national capacity in these areas is critical to underpin Scotland’s ambitions in AI, cloud computing, and data intensive industries.

3. Governance and Ethical Foundations for Data Use

Robust governance frameworks addressing data ethics, security, and privacy must sit at the core of any AI strategy. This is particularly important in sectors involving sensitive information, such as health, where responsible stewardship of data is a prerequisite for public trust and sustainable innovation.

4. Cultural Barriers to Innovation and Adoption

Risk averse cultural attitudes remain a limiting factor across parts of the public and private sector. These behaviours reduce appetite for experimentation and slow the adoption of new technologies and operating models, constraining Scotland’s ability to compete with bolder, more agile innovation ecosystems.

5. Managing Disruption Across Key Industries

While Scotland should pursue ambitious opportunities in AI and emerging technologies, it must also acknowledge the potential for disruption in sectors such as the Creative Industries, which play a vital role in the national economy. Effective transition planning and support will be required to mitigate unintended consequences.

6. Reducing Barriers to IP Commercialisation and NHS Data Access

Spinouts and founders continue to encounter friction arising from restrictive intellectual property processes and complex access pathways for NHS data. These constraints — combined with necessary privacy and ethical considerations — slow commercialisation and reduce Scotland’s ability to translate research excellence into high growth ventures.

7. Addressing Data Access, Vendor Lock-In, and Sovereignty Concerns

Access limitations — such as vendor lock-in, data sovereignty risks, and misalignment between agencies — create operational and strategic constraints. There is a particular need for caution when considering sharing NHS data with organisations outside the UK, as security and sovereignty implications could be significant.

8. Resourcing Institutions to Deliver Commercialisation and R&D

Universities and the NHS are operating at or near full capacity, limiting their ability to expand research, development, and commercialisation activities. Additional resources and dedicated innovation pathways are required to unlock their full economic contribution.

9. Funding Challenges Within Further and Higher Education

Flat tuition fee structures, tightening immigration limits, and rising operational pressures are creating financial strain within the sector. These challenges point to the need for new funding models, and the Council’s reflections can make a valuable contribution to the forthcoming review of university funding.