The North's AI Reckoning: How Northern Businesses are Embracing and Adapting to the Power of Artificial Intelligence

Introduction:

Artificial intelligence (AI) has been a hot topic in the tech industry for years, but for many Northern businesses, it has moved beyond just being a buzzword and into a crucial part of their operations. The question now is not whether companies will use AI, but rather how quickly they can harness its potential to make a significant impact.

A recent roundtable discussion, hosted by RSM in partnership with UKTN, brought together investors, founders, and technology leaders to delve into the current state of AI in the North. This meeting was prompted by RSM's latest Technology Industry Outlook report, which sheds light on what is and isn't working in the technology funding landscape.

The Opportunity:

Representing sectors such as finance, manufacturing, and healthcare, attendees of the roundtable unanimously agreed on the immense potential of AI. They shared how AI is already helping their teams work faster and make better use of data. However, the real challenge lies in moving from isolated pilots to wider implementation.

Gareth Martin, CEO of AI-powered research and intelligence platform Manuka, noted that many companies are still using AI to tweak existing processes instead of rethinking how their businesses operate. He emphasized that embedding AI more deeply into core operations is where the true value of the technology lies.

The Investment Dilemma:

One of the key challenges for businesses and investors alike is the need for clear proof that AI projects will deliver returns before committing larger sums of money. Ryan Sorby, partner at Palatine Growth Credit, explained that investors tend to favor projects with easily quantifiable benefits, even if it means focusing on incremental improvements.

Nick Wyatt, deal services partner at RSM, shared that the pressure to invest in AI is growing, and RSM has committed a billion dollars over the next three years to accelerate AI and enhance efficiencies for their clients.

The Role of Government Policy:

The conversation also touched upon the impact of government policies on the adoption of AI. Colin Smyth, corporate tax partner at RSM, highlighted the UK's historically poor record of research and development spending, which has hindered the country's potential to invest in AI.

Darren Griffin, tax director at RSM, raised the question of whether there needs to be a shift in government policies to provide more incentives for companies to invest in AI over a longer period of time. He stressed the importance of these incentives in encouraging companies to commit to a longer-term strategy amidst challenges like talent shortages and rapid technological advancements.

The Future of AI:

The pace of technological development is another factor that complicates the adoption of AI. Tom Liptrot, founder of AI consultancy Ortom, pointed out that many companies are planning based on capabilities that are already outdated. He urged businesses to think ahead and consider the potential of technologies like autonomous agents and self-improving software.

The North's Advantages:

The roundtable also highlighted the strengths of the North, such as lower costs, strong universities, and improving infrastructure, which make it an attractive location for AI development. However, there was a consensus that the region needs to keep up with investments in AI infrastructure to continue leading innovation.

Katie Gallagher OBE, managing director of industry body Manchester Digital, stressed the need for the public sector to play a more significant role in supporting startup scale-ups and providing necessary infrastructure.

The Importance of Commitment:

The discussion also touched upon the issue of scale and what happens after early growth. It was noted that UK startups are often acquired by overseas buyers once they reach a certain size, potentially leading to the loss of jobs and intellectual property. However, the overall mood of the discussion remained optimistic, with participants agreeing that the immediate benefits of AI are already visible in productivity gains.

Conclusion:

The roundtable concluded with a consensus that technology alone will not determine the outcome of AI adoption. The commitment of businesses and policymakers to invest and take risks is just as crucial as the tools themselves.

Reference: Skilled tech migration falls in UK as talent pressure grows. (2019, October 31). UKTN. Retrieved from https://www.uktech.news/featured/the-norths-ai-reckoning-20191031