Scotland tech optimism holds as AI adoption surges

ScotlandIS found that 71% of Scottish technology businesses are optimistic about 2026 in its latest Scottish Technology Industry Survey.

Confidence has softened from recent years, down from 73% in 2025 and 80% in 2024, despite stronger trading conditions and improved financial stability reported by many companies.

More than half of respondents (58%) said sales rose in 2025, while 84% expect sales growth in 2026.

Cashflow pressures also appeared to ease. Some 36% of businesses reported an improvement, while 11% faced substantial difficulties, down from 16% in 2024.

Sector Demand

Growth expectations were strongest in energy and utilities, financial services, and healthcare and pharmaceuticals. Demand in those markets reflects the need for digital technology support in heavily regulated and data-intensive industries.

Artificial intelligence featured heavily in the results. Almost all respondents said they now use AI in some form, while full adoption doubled to 18%.

Only 2% reported no use of AI, compared with 10% a year earlier. The findings suggest businesses are moving beyond trials and early testing towards more defined deployment.

The survey also pointed to a more selective approach to technology investment. AI and machine learning remained the main focus for 59% of respondents, while data analytics and cybersecurity were cited by 36% each.

Interest in cloud and the internet of things was lower, suggesting a more mature market with narrower priorities.

The study drew 347 responses, with 251 included in the analysis after duplicates and unusable submissions were removed. Respondents included both members and non-members of the industry body.

ScotlandIS represents Scotland's digital technologies industry, which includes 3,900 companies. The sector contributes about GBP £7.5 billion to Scotland's gross value added and employs more than 70,000 people.

Karen Meechan, chief executive of ScotlandIS, said, "It's encouraging to see optimism holding across Scotland's tech sector, even as confidence levels ease slightly. The fundamentals are strong - businesses are growing, investing and continuing to innovate."

"Although it fell after the survey period, the unveiling of Scotland's AI strategy will likely provide the sector with a further boost, bringing much-needed clarity and direction."

"Of course, the outlook is not without its challenges. Companies are operating in a tougher, more complex environment, and that's clearly shaping how they approach growth. But crucially, it doesn't seem to be stalling it."

"In terms of practising what we preach, AI has a big role to play in this. One of the most significant shifts we're seeing is the move from simple adoption to using the technology in ways that deliver real impact. I believe our businesses can be true innovators in this space," said Meechan.