Scottish firms talk up AI but lack clear strategies

Artificial intelligence is a frequent topic in Scottish boardrooms, but many organisations still lack a formal plan for how they will use it, according to research by executive search firm Livingston James and consultancy EY.

The study found that 71% of surveyed leaders said AI adoption was a regular board-level topic, while 36% said their organisation had a specific AI strategy. A further 63% said they still needed to develop one.

Researchers surveyed and interviewed more than 200 C-suite executives across Scotland's public, private and third sectors. Participants included CEOs, non-executive directors and heads of function in finance, HR, technology and operations. Most respondents were from the business community, which made up 71% of the sample.

Ownership questions

The findings suggest uncertainty over who leads AI work inside organisations is slowing progress from discussion to implementation. When asked which function had overall responsibility for AI strategy, 46% pointed to technology.

Beyond that, ownership appeared fragmented. Operations held responsibility in 16% of cases and finance in 12%. Another 8% said no one had been assigned responsibility for AI. A further 6% said responsibility was shared among senior management, spread across business areas or handled independently by teams managing their own adoption. Some respondents also described gaps in workforce planning and measurement frameworks.

Clear governance matters because many organisations are still working out how AI fits alongside existing digital programmes, risk controls and investment plans. Board-level attention is high, but clear accountability appears less common.

Sector differences

Public sector organisations were most likely to have an AI strategy, with 44% of leaders saying one was in place. The figure was 38% in the private sector and 26% in the third sector.

The study also found variation by organisation size. Micro organisations with fewer than 10 employees recorded the highest share with an AI strategy at 59%. Large organisations followed at 37%, with medium and small organisations at 33% and 28% respectively.

The results suggest small teams may be moving quickly to formalise their approach, while medium and small organisations are less likely to have committed strategy documents. They also indicate that large organisations, despite bigger budgets and established technology functions, do not always turn boardroom discussion into formal strategy.

Tech leaders and the top job

The research also examined how technology leaders are positioned in executive succession and leadership pipelines. Only 50% said they believed they had the potential to become CEO of their organisations-joint lowest among senior management, alongside HR.

Technology leaders were also the least likely to be involved in succession planning, with 17% saying they had a role. That compared with a higher rate among heads of finance. Only 3% of surveyed CEOs came from a technology background, while 35% came from operations and 32% from commercial roles.

That leadership mix could shape how AI programmes are approached, given the need for cross-functional ownership and clear accountability. It may also influence how organisations weigh AI investment against priorities such as workforce planning and risk management.

People still central

Despite growing focus on AI, leaders said people issues remain their top concern. When asked what "keeps you awake at night", respondents cited attracting, retaining and developing talent as a persistent challenge.

Participants also worried about falling behind competitors despite large technology investments, losing high-performing teams to more agile or purpose-driven rivals, and struggling to re-skill staff for a more digital workplace. They also raised cybersecurity, ethical questions around AI use and 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 people 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, said: "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."