Advances in artificial intelligence and machine learning are helping maintain optimism in the Scottish technology sector, according to a new survey.

ScotlandIS, the digital industries organisation, said its latest survey of the sector had shown the level of positivity had slipped to 73% from 78% last year but was still being driven by new opportunities.

UK government support for AI and machine learning (ML) was a factor in 69% of firms expecting to see new opportunities in these disciplines from 62% in the last poll. This is driving a demand for skills in this area

One concern was that 16% of firms indicating cash flow issues – from 3% in 2023.

In response to the survey results, ScotlandIS plans to form even closer ties with policymakers, industry bodies and educational providers to address these growth challenges and help businesses scale effectively. 

Karen Meechan, CEO at ScotlandIS said: “There’s a lot to be excited about in the Scottish tech sector right now.

“The UK government’s increased focus on AI, has driven huge growth for our industry in that area. This is reflected by some encouraging responses to our survey and it’s great to see a strong sense of optimism continue as we progress further into 2025.

“With the ongoing geopolitical and economic challenges, the fact we’ve seen some slight softening when compared directly with last year’s results is hardly surprising.

“Seeing the Scottish tech sector remain so positive, even in the middle of a very tough climate for businesses, is testament to how resilient our industry really is.”

Stephen Coleman, CEO and co-founder of CodeBase said: The global technology landscape is evolving at an increasingly rapid pace, with advances in AI and a shifting investment landscape creating both challenges and opportunities.

“As this report shows, these macro movements are being felt in Scotland. The issues are complex and multi-faceted, but Scotland has assets, talent and infrastructure which can collectively create a strong tech economy.

“Techscaler is a vital part of that infrastructure; supported by many great partners like ScotlandIS, we are working to help create more startups, and supporting the increasing numbers of scaleups to help them achieve their high growth potential.

“This survey is a valuable tool as we collectively navigate towards a better future for Scotland.”