West Midlands businesses report 59 per cent profit boost thanks to AI adoption

West Midlands businesses integrating AI into their operations are reporting significant financial benefits, with 89 per cent seeing increased productivity and 59 per cent reporting higher profits over the past 12 months., the survey shows.

Of those reporting a profit boost from using AI, 49 per cent recorded an uplift of 11 per cent or more, with a further 41 per cent saying profits increased by six to 10 per cent, and 12 per cent saying profits increased between 0 to five per cent.

The findings come as investment in AI accelerates, with more than three-quarters (78 per cent) of West Midlands businesses confirming they have invested in AI. 

The research from Lloyds, which has a regional hub in Birmingham, found most firms spent less than £25,000 (32 per cent) to enhance their AI capabilities, followed by 17 per cent of firms who spent between £25,000 and £100,000, 18 per cent spending between £100,000 to £250,000 and 10 per cent spending £250,000 or more. 

83 per cent of businesses in West Midlands say they are currently using AI, the Barometer found.

Alongside the gains, West Midlands businesses are investing in the skills needed to make AI adoption effective. The survey shows customer service roles have been upskilled the most by AI (46 per cent), followed by sales teams (36 per cent). 

Dave Atkinson, regional director for the West Midlands, said: “West Midlands businesses are approaching AI as a powerful strategic advantage – with profitability and productivity increases just some of the ways that it’s helping them grow and compete. As firms make further investments in the technology and expand its use, they will need clear oversight and robust processes so that it is used responsibly and transparently.”

Lloyds is also seeing the benefits of its investment in AI. Earlier this year, Lloyds developed generative AI tool ‘CRE AI’ which processes complex real estate tenancy schedules in minutes, rather than the 75 hours previously required. It doesn’t make decisions but the tool streamlines preparation so teams can focus on judgement-based work and supporting clients. 

Lloyds Banking Group this year launched the AI Academy - a programme designed to provide practical AI skills for all colleagues, no matter their role or level. The aim is to equip colleagues with the skills and knowledge to implement AI solutions in their day-to-day work, boosting efficiency and allowing staff to focus their time on high-value tasks. By putting new capabilities into practice, it creates opportunities to provide customers with enhanced and innovative new services, and open potential new revenue streams for the business.