Tech

Scotland needs to embrace AI for its potential to be realised, minister says

The Scottish government has said AI could generate an additional £23bn in annual GDP for Scotland by 2035 with the right investment and leadership.

Scotland must embrace AI if its potential is to be fully realised, a minister has said

Scotland needs to adopt AI technology and place trust in the country’s planning system if its potential is to be realised, Innovation Minister Alyn Smith has said.

The Scottish government said independent research suggests AI could add £23bn a year to Scotland’s GDP by 2035, provided the right investment and leadership are in place.

The comments come amid intense debate over the technology’s value, alongside opposition to several proposed AI data centres in Scotland.

Smith told the BBC: "People are up for these developments but we need to see the planning system augmented to take due note of the significant implications of some of these projects, particularly on energy use."

The minister is due to attend a meeting in Edinburgh to hear from businesses about what they believe is slowing AI adoption and what is helping it.

The event will also examine the role of Scotland’s universities and colleges in building the AI and data skills the economy requires.

Concerns have been raised about the construction of large data centres

In September, the Scottish Greens led a debate calling for a pause on planning applications for large-scale AI data centres until national guidance had been published.

The Scottish government rejected that call, saying that while there were "legitimate concerns" about such projects, ministers were strengthening oversight of the planning process.

National guidance for local authorities is expected to be published by Christmas.

Smith said some of the arguments around building large data centres had been dominating the discussion about AI’s future in Scotland.

"Some of the discourse we have seen on this is wild," Smith told

"You'd think there wasn't a planning system at all. Comparing a really bad data centre in the middle of the Utah desert doesn't track through to what we're going to have in Scotland."

BBC Scotland has previously heard from people living near proposed data centre sites who are worried about how the developments will look, possible noise, and the amount of land needed to build them.

Experts have also warned MSPs that these data centres could raise electricity prices for consumers and make climate change targets harder to meet.

Smith said Scots were "pro-technology", noting that Scotland’s IT industry currently employs 87,000 people, compared with 21,000 people employed by the mining industry in 1979.

"Lets just get a grip on this," he said. "The people of Scotland are serious about technological developments. We've got a great industry right now."

He said there needed to be "confidence-building measures" in AI going forward.

"I want to see us get a grip on this debate - focus on the actual facts," he said. "We could get significant community benefit out of these things."

Smith said data centres were "the whisky bonds of the AI sector".

"They're an integral part of what the sector needs to be and for tech sovereignty in a really interconnected, but unstable world, I think it's quite important that if you're using a smartphone you ask where your data is being kept? Is it somewhere reliable? Is it somewhere trustworthy?"

Smith acknowledged that data centres do not create many jobs, but stressed the benefits AI could deliver for businesses and communities.

Addressing concerns about data centres, he said: "Everything will be judged on its merit. People who are expressing concerns about particular developments, so they should. We have a planning system in Scotland that the people are in charge of.

"Not all of these applications are going to go forward because not all of them are suitable or have sufficient community engagement.

"We are a tech-heavy nation. We have got a lot of great jobs in this sector and I want a debate on the merit of these AI data centres."

Alyn Smith said he wanted Scotland to make the most of AI opportunities

The minister said a Workplace Jobs Observatory - led by STUC - had been established and could show in real time how AI was affecting the workplace.

"This is a technology that is developing at pace," he said. "I want to see ethical guard rails put on it by legislation and want to align with the EU norms."

He said Tuesday’s meeting would examine what the Scottish government was doing to adopt the technology and ensure people had the necessary skills.

"Where there are opportunities for AI I want us to be all over it," he said. "And where there are things that people need to be reassured about I also want to be all over it because I'm here to represent the interests of the people of Scotland."

Julian David, chief executive of techUK, who is also attending the meeting, said: "The opportunity AI offers Scotland is significant, but it will only be realised if businesses and government pull in the same direction.

"Today's roundtable is a chance for industry to share what is working on the ground and for government to listen and act.

"By collaborating, we can help more businesses of every size make the most of AI."

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