The majority of senior leaders in Scottish organisations are talking about artificial intelligence (AI), but only one-third have actually put a plan in place to harness its potential, according to new research launched today by executive search firm Livingston James and global consultancy EY.
Just 36% of respondents to the firms’ Investigating the Future CEO report said they have a formal AI strategy, with 63% still to develop one. Yet, 71% also said adoption of the technology is being discussed regularly at board level.
The report, now in its second year, blends surveys and interviews with more than 200 CEOs, non-executive directors, and heads of function ranging from finance and HR to technology and operations. It also covers organisations of all sizes across the private, public, and third sectors in Scotland, with the majority from the business community (71%).
The findings suggest a major contributor to the lack of AI implementation in Scottish organisations could be uncertainty over who should be driving it forward within them. While 46% of those surveyed said their technology function has overall responsibility for AI strategy, other responses were more diffuse.
Respondents said operations or finance were responsible for AI in 16% and 12% of cases, respectively, but 8% have not assigned the technology to anyone, commenting on a lack of workforce planning and measurement frameworks. Another 6% said there was shared responsibility among senior management, across all business areas, or teams managed their own adoption.
Public sector organisations are most likely to have created an AI strategy, with 44% of leaders saying they had one in place. That compared to 38% and 26% in the private and third sectors.
Perhaps surprisingly, micro organisations – those with fewer than 10 employees – were most likely to have an AI strategy, at 59%. This was followed by 37% of large organisations, and 33% and 28% for medium and small-sized organisations respectively.
Chart : Does your organisation have an AI strategy in place? (By sector)
Source: Livingston James, EY
Despite the rise in importance of AI, only 50% of tech leaders believe they have the potential to become the CEO of their organisations, which is joint lowest among senior management with HR. They were also the least likely to be involved in succession planning for their organisations at 17% – half the rate for heads of finance – and only 3% of the CEOs surveyed came from a technology background, compared to 35% for operations and 32% for commercial.
Technology may have been the major theme of last year, but people continue to dominate CEOs’ agendas in Scotland. When asked ‘what keeps you awake at night’ the challenge of attracting, retaining, and developing talent remains one of the most pressing issues, recognising that innovation and growth still rely on human creativity, trust, and engagement.
Participants in the report highlighted the fear of falling behind competitors despite investing heavily in new technology, losing high-performing teams to more agile or purpose-driven competitors, and struggling to re-skill existing staff for a digital future. Other worries included cybersecurity, the ethical use of AI, and the growing dependency on digital infrastructure.
Ali Shaw, director at Livingston James, said: “The results from our Investigating the Future CEO report reflect what is happening more widely in society – lots of people are talking about AI, but fewer are certain about how they should actually use it in the right way. For CEOs and other senior executives it could be the defining technology of the years ahead, and it’s imperative that they embrace that opportunity by implementing it in the best way possible within their organisations.
“Given that responsibility lies predominantly with other functions – and, worryingly, in some cases with no one – CEOs will need to ensure that they have the right people around them to make the most of the opportunities AI presents. That could mean involving senior tech executives more in areas like succession planning so that future leadership teams have the right level of technological knowhow to prepare for the big changes ahead.
“It’s encouraging to see that they remain top of the agenda for many leaders in Scotland. Although technology has been the talk of the last year or so, people are still very much at the heart of its adoption, how organisations function, and maintaining a competitive advantage.”
Cara Heaney, people advisory services and managed services leader at EY Scotland, added: “Scottish leaders are clearly energised by the potential of AI, but turning ambition into action now requires a shift from discussion to disciplined execution. Our experience with clients shows that progress accelerates when leaders treat AI as a strategic capability.
“What’s equally important is building confidence and fluency across the workforce. While the public are using AI enthusiastically in their personal lives, adoption at work still lags. This gap presents both a challenge and an opportunity for CEOs: by investing in skills, communicating the benefits clearly and ensuring trustworthy safeguards are in place, organisations can empower their people to use AI safely and effectively.
“The most successful organisations will be those that bring technology, people and governance together. If CEOs establish clear ownership, embed responsible AI practices and support their teams through the change, they won’t just keep pace with competitors – they’ll set the standard for what modern leadership looks like in an AI‑enabled economy.”
