In the heart of the West Midlands, a quiet revolution is taking place—powered not by bricks or concrete, but by algorithms and artificial intelligence (AI).
From high-street shops to tech-driven enterprises, more and more local businesses are embracing AI as a powerful tool to boost productivity, increase profits, and shape the region’s economic future. That’s according to the latest Lloyds Bank Business Barometer, which reveals that two-thirds (66%) of West Midlands firms believe AI adoption will be a major driver of local economic growth.
Behind the numbers are real business stories — of adaptation, innovation, and resilience. One of the most encouraging signs is that 67% of local firms are already using AI, with nearly 80% reporting a boost in productivity, and almost 70% seeing higher profitability.
From automating processes to analysing customer data, AI is proving to be more than just a buzzword—it’s becoming a lifeline in a challenging economic climate. Many businesses are leaning on off-the-shelf AI platforms to streamline tasks and cut costs, but a notable one-third have developed their own in-house AI solutions, showing the region’s growing confidence and capability in digital transformation.
Looking to the future, over half (54%) plan to invest more in AI over the next year, and nearly a third of current non-users plan to adopt the technology for the first time. There’s also an emerging shift in the workforce—22% of businesses plan to create AI-specific roles, suggesting new career pathways for young professionals and tech-savvy jobseekers.
But it’s not all smooth sailing. For many business owners, especially those without a tech background, there are still concerns.
Nearly half (45%) say they need a better understanding of AI and its real-life applications. Another 24% say seeing how others use it would help them take the plunge.
Dave Atkinson, Regional Director for the West Midlands at Lloyds Bank, says the appetite is there—what’s needed now is community support. “There’s a clear and growing buzz around AI among businesses in the West Midlands,” he said.
“A significant number are now building their own in-house AI tools. But what many need is access to the right knowledge and real-world examples.
“That’s where local collaboration will be vital—sharing success stories, challenges, and lessons learned.” With its proud industrial heritage and growing digital ecosystem, the West Midlands may just be one of the UK’s most promising regions to watch as AI takes centre stage—not just in the boardroom, but in everyday business life.
