Artificial intelligence is a powerful tool but to unlock its full potential Scottish businesses must ask the right questions, analyse data and set out strategies that achieve their goals, writes Scott Miller - Senior Director at LHH Recruitment and Business Services lhh.com/uk

(Image: Scott Miller) Artificial intelligence is no longer a concept confined to the pages of science fiction or the minds of Silicon Valley engineers.

It is very real and very present – a transformative force reshaping industries worldwide. 

Scottish businesses and organisations are not immune to this shift. In fact, a recent webinar hosted by LHH Recruitment and Business Services and the Global Artificial Intelligence Leaders (GAIL) network revealed how leaders are already engaging in conversations about the future of AI.

The turnout was strong, the discussion was lively, and several consistent themes emerged among the public, private, and third sector leaders from across Scotland who joined us.

The overarching sentiment in the room was one of cautious optimism. 

There is a clear desire among Scottish organisations to embrace the benefits of AI, yet a palpable sense of apprehension lingers about how to do so. Many leaders know that AI has transformative potential, but they are unsure about where to begin. They can see the distant destination but need guidance on how to chart the course to get there.

In some ways, this situation is similar to the early days of the digital revolution around the turn of this century in certain industries, where leaders recognised the need to pivot but were unsure about the operational steps required to embed digital tools and technologies into their existing culture and infrastructure. 

There are some key differences, however, such as the virtually non-existent barriers to accessing AI, and the fact the speed of change in AI is incredibly fast. But the lessons learned from those early digital transformations can serve as valuable models for today’s AI journey: transformation is not just about adopting new technologies but about embedding those technologies into the fabric of an organisation’s culture.

AI’s potential extends far beyond the familiar tools such as ChatGPT. While many organisations are experimenting with simple queries or text generation, there is a recognition that this is merely scratching the surface. 

Leaders understand that AI can revolutionise business operations, enhance decision-making, and unlock efficiencies, but they need help identifying the “how”. How can AI specifically address their industry’s challenges? What processes can it optimise? Which areas can see the most immediate impact?

This challenge – embedding AI into the heart of an organisation – was a key point of discussion during our recent webinar. The consensus was AI adoption isn’t a purely technical challenge – it’s also a cultural one. 

In much the same way business sectors such as newspapers had to shift their mindset during the digital revolution, businesses across all sectors must now nurture an environment that is not only open to AI but actively embraces it. 

For this to happen, organisations need to foster a mindset that welcomes innovation, experimentation and, yes, even failure. Leaders need to create space for their teams to explore AI’s potential without fear of negative consequences if initial trials don’t go as planned.

This is especially true in the public and third sectors, where risk aversion is often higher due to regulatory scrutiny and budget constraints. Just as with previous digital transformation, AI adoption must be driven from the top.

Executive leadership must not only champion AI but also understand its potential to drive change. This requires investment in both technology and talent, and here is where many Scottish leaders face their next major hurdle – recruitment.

A recurring question during the LHH/GAIL webinar discussion was: “Who are the right people to lead this transformation?” Many leaders are grappling with the decision of whether to appoint a chief AI officer or instead embed AI expertise across different functions such as finance, marketing, and HR.

The answer will differ from organisation to organisation, but one thing is clear: having the right people in place is crucial. 

This is where recruitment firms such as LHH come in, helping organisations not only identify talent with AI expertise but also align those hires with their broader strategic vision.

One option is to bring in AI specialists who can act as internal champions, driving forward AI projects and ensuring that the organisation stays at the forefront of the technology curve.

Another approach is to upskill existing teams, helping people in key roles – whether in finance, operations, or customer service – become more proficient in, and less fearful of, AI tools and methodologies. 

Both approaches have their merits. Appointing a dedicated AI leader can bring focus and drive to the AI transformation, ensuring it doesn’t become just another “innovation initiative” that fails to gain traction. 

On the other hand, embedding AI expertise within existing teams ensures the knowledge is diffused throughout the organisation and tied directly to core business functions.

One of the most important takeaways from the webinar was that AI transformation is, at its core, no different from any other type of strategic change. Like any large-scale transformation, it requires a clear vision, strong leadership, and a well-defined strategy that aligns with the organisation’s broader goals.

Organisations must work out their strategic vision by asking “What do we want to achieve with AI?” and “How will it help us get there?” Once these questions are answered, they can build the necessary structures – both in terms of people and processes – to bring that vision to life. 

However, the starting point for building this strategic vision is first really understanding your business and – crucially – your data, and how to improve this data. This will then inform the strategy. 

Organisations need to recognise AI is not a silver bullet. It will not solve all problems overnight, nor is it a one-size-fits-all solution. 

Instead, it is a tool – an incredibly powerful one – that, when used correctly, can unlock significant benefits.

However, as with any tool, its effectiveness depends on how well it is integrated into the organisation’s overall strategy and how skilled the people using it are.

Scottish businesses and organisations are standing at a pivotal crossroads. There is no doubt that AI has the potential to reshape industries and drive significant improvements in productivity, efficiency, and innovation. However, it’s clear that many leaders are still unsure about how to take the first step.

The key to overcoming this uncertainty is simple: start with strategy. By defining a clear vision for what AI can achieve within their organisation and then building the right teams and processes around that vision, Scottish organisations can move from apprehension to action. 

AI is the next frontier, and those who are willing to embrace it thoughtfully and strategically will undoubtedly emerge as the leaders of tomorrow.

Scott Miller is Senior Director at LHH Recruitment and Business Services lhh.com/uk