The term "AI" has become somewhat of a buzzword in recent years, with many primarily associating it with generative tools like ChatGPT, browser-based AI assistants, or Google’s AI-powered search features.
But what often goes unnoticed is the extent to which AI technology can benefit businesses in broader, more meaningful ways - integrating seamlessly to enhance their everyday operations, drive business growth, and unlock new opportunities for innovation.
AI can transform not just how tasks are performed, but how decisions are made, business relationships are built and maintained, and long-term value is created across organisations. From supporting educators to reduce the burden of administrative tasks to providing healthcare professionals with the tools to streamline diagnostic processes, AI’s myriad applications are still not fully understood, or embraced, by many businesses.
Upping the pace of AI adoption has the potential to unlock economic growth in the North and across the º£½ÇÊÓƵ and empower businesses to operate competitively on a global scale.
The innovation divide
According to McKinsey, larger organisations are currently leading the way in adopting and scaling generative AI best practices, with 52% of large companies having established dedicated teams to drive generative AI adoption, compared to just 23% of small businesses.
This is largely down to the greater financial resources of big businesses, their access to skilled talent, and maturer digital infrastructure that supports the smooth integration of AI technology, as well as increased pressure to innovate and remain competitive in the market.
In contrast, smaller businesses often lack the expertise, funds, or digital readiness to implement AI effectively - but to keep pace with rapid technological advancements, businesses of all sizes must prioritise AI adoption, harnessing the right tools and strategies to drive transformation.
A recent report from Microsoft also found that AI could help boost productivity, innovation and competitiveness for small and medium-sized businesses in the º£½ÇÊÓƵ to the tune of £78 billion in added economic value over the next decade. The potential for regional growth here is significant, with the report estimating that increased AI adoption by SMEs could boost the West Yorkshire economy by £4.6 billion by 2035 and add £2.8 billion to the Liverpool City Region over the next decade.
A separate report from Greater Manchester Combined Authority (GMCA) also finds that SMEs make up 88% of the economy in the city region. With the right support and a strong focus on driving AI adoption, the city region’s AI ecosystem alone has the potential to be worth £11.2 billion by 2035, as outlined in the Greater Manchester AI Catalyst Report.
Staying ahead in a changing landscape
Automation is the future, and with the current pace of change in the business ecosystem, those that fail to adopt AI, even in small ways, risk falling behind.
Implementing new technology is crucial for growth in today’s challenging and competitive market. Without embracing this step change, companies may struggle to survive - missing out on efficiency gains, innovation opportunities, and the ability to meet evolving customer and user expectations.
Competitors leveraging AI can streamline operations, personalise user experiences, and identify growth opportunities faster and more accurately. This technological gap can widen quickly, making it difficult for non-adopters to catch up.
The Northern edge
For the second year running, Greater Manchester has been named the º£½ÇÊÓƵ’s most AI-ready city, making it the best positioned to harness the economic and social potential of artificial intelligence.
The city leads the way due to having the highest number of AI-related jobs within a five-mile radius and securing an average of £77,000 in Innovate º£½ÇÊÓƵ funding per qualifying AI-focused company. Additionally, Greater Manchester is home to over 200 businesses that specialise in AI technologies and 13,500 people working in AI companies.
Across the city and wider region, AI is already being utilised by a wide range of businesses across varying sectors. In healthcare, it’s helping to reduce administrative tasks, allowing professionals to focus more on patient care. In the maritime industry, AI is used to track weather patterns and optimise routes, helping to lower carbon emissions. In education, it’s giving teachers more time to focus on the learning experience of pupils.
The adoption of AI across Greater Manchester is not only driving innovation but is also delivering significant economic benefits for the entire region, helping to position the North as a leading force in the º£½ÇÊÓƵ’s digital economy.
But we need the pace of AI adoption to increase to ensure that businesses of all sizes can remain competitive, close regional productivity gaps, and fully capitalise on the opportunities that AI presents for job creation, skills development, and long-term economic resilience.
Northern leadership driving national growth
Accelerating AI adoption is not just an opportunity; it’s a necessity for driving sustainable economic growth in the North and across the º£½ÇÊÓƵ.
While progress is already being made in city regions like Greater Manchester, ensuring that all businesses, especially SMEs, are empowered and supported to adopt AI will be vital to unlocking productivity gains, fostering innovation, and strengthening regional economies.
The North is well positioned to lead, but to fully capitalise on AI’s potential, we must widen access, close the adoption gap, and support businesses at every stage of their digital transformation journeys.
The future won’t wait. Embracing AI now is the key to unlocking the North’s full economic potential and securing the º£½ÇÊÓƵ’s place at the forefront of the global digital revolution.
