The Scottish Government has put £1.8m into a second year of AI Scotland, its national programme helping small and medium-sized businesses adopt artificial intelligence. That is up from £1m in the first year, which the government says reached more than 1,000 businesses.
The programme offers mentoring, workshops and grant funding to help firms identify where AI might be useful, plan how to implement it and build and test systems of their own. It is delivered by the enterprise agencies alongside Business Gateway and The Data Lab, the national innovation centre for data and AI, and forms part of Scotland’s AI Strategy for 2026 to 2031.
Innovation Minister Ben Macpherson announced the funding at Border Biscuits in Lanark, which has used AI to improve data analysis, production line monitoring and sales forecasting. He said making sure businesses can “identify appropriate AI opportunities – and adopt new technologies safely and in line with Fair Work principles – will help drive sustainable growth across the economy and futureproof Scotland’s businesses”.
“The vast majority of Scottish businesses are SMEs,” he added. “The continuation of this programme means that even more of them will have access to the tools and expertise they need to help grow, innovate and flourish.”
Rhona Allison, a Scottish Enterprise managing director whose remit covers company growth and scaling innovation, identified the specific problem the money is meant to address. “Adoption is accelerating, but many companies still need support to move from experimentation to meaningful business impact,” she said.
The survey evidence supports her. The Fraser of Allander Institute’s Scottish Business Monitor, which polled more than 300 firms across all 32 council areas in June, found 64% had used AI in the previous three months — the first time a majority of firms in every broad sector had reported doing so. But it also found most were not using it intensively, with low or moderate use more common than significant use, and described AI at many firms as a support tool rather than a technology woven into how they operate.
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Official statistics put the baseline lower again. The Scottish Government’s own Business Insights and Conditions Survey, covering the fortnight to 28 June, found 34.8% of businesses with 10 or more employees were using some form of AI, falling to 33.3% among those with 10 to 249 staff.
Alex Sano-Davies, sales director at Border Biscuits, said the support “has helped us embrace new technology, improve efficiencies and give our team the tools and confidence to work in new and innovative ways”.
