• Swindon & Wiltshire Economy
• Thursday March 12 2026

South West businesses adopting AI see strong gains in productivity and profitability – survey

AI is helping South West firms work more efficiently and unlock new opportunities for growth, according to findings in the latest Lloyds Business Barometer.

South West businesses integrating AI into their operations are reporting significant financial benefits, with 70 per cent seeing increased productivity and 42 per cent reporting higher profits over the past 12 months.

Of those who reported a profit boost from using AI, 38 per cent recorded an uplift of 11 per cent or more, with a further 42 per cent saying profits increased by 6-10 per cent, and 19 per cent saying profits increased between 0-5 per cent.

The findings come as investment in AI accelerates, with more than half (58%) of South West businesses confirming they have invested in AI.

The research from Lloyds found that most firms spent less than £25,000 (31 per cent) to enhance their AI capabilities, followed by 20 per cent of firms who spent between £25,000-£100,000, five per cent spending between £100,000-£250,000 and two per cent spending £250,000 or more.

Two-thirds (66 per cent) of businesses in the South West say they are currently using AI.

Alongside these gains, South West businesses are investing in the skills needed to make AI adoption effective.

The survey shows that customer service roles have been upskilled the most by AI (51 per cent), followed by sales teams (38 per cent).

Amanda Dorel, regional director for the South West at Lloyds, said: “These profitability and productivity increases underline why South West companies are seeing AI as a strategic tool that is key to supporting their long-term ambitions.

“As they 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 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 colleagues 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.