Since the 2011 Scottish Digital Strategy, Scotland's political and economic commitment to the technology industry has been consistent and substantial.
The 2020 Scottish Technology Ecosystem Review and the subsequent TechScaler startup programme are great examples of this dedication at work today.
Edinburgh's vital role in these plans has been equally long-standing. In 2018, a collaboration between the UK and Scottish governments launched a £661 million Data-Driven Innovation (DDI) Programme to make Edinburgh the data capital of Europe[1].
In 2020, Scottish Development International (SDI) began positioning Edinburgh as the next UK tech hub. By mid-2022, the city had established a clear lead as the home of more than a third of Scotland's high-growth tech businesses[2].
However, in 2023, Accenture warned that Edinburgh must redouble the aspiration amidst competition from the likes of Amsterdam and Dublin.
How can Scotland carve out a leadership position?
The answer lies within artificial intelligence (AI).
As a commercial opportunity, AI is astounding. The September 2023 Worldwide Artificial Intelligence Spending Guide from the International Data Corporation (IDC) cited that AI spending in Europe will grow at just under 30% per year between 2022 and 2027, exceeding $96.1 billion by 2027[3].
AI has already made a significant impact on the thinking of a lot of people in the Scottish public sector. In a recent interview, Chief Digital Officer for the Digital Office Martyn Wallace commented: "The rapid advancement of technology and the mixed reactions to the rise of artificial intelligence has created a new era in which the Digital Office for Scottish local government now operates in".
Edinburgh is remarkably well-placed to capitalise on this opportunity.
Across the city, over 100,000 data experts will have been trained by 2028[5]. The AI Cities Index 2023 from analytics firm SAS hails Edinburgh as the UK's most AI-ready city outside London[6], with 82 AI startups.
AI adoption is increasing at around 21% year on year[7]. Infrastructure matters in a digital and data-driven world where AI is on its way to becoming the norm. It is the basis of opportunity.
The UK Powerhouse Report from the Centre for Economic and Business Research (CEBR) and Irwin Mitchell ranked Edinburgh as one of the top ten best-performing cities for economic output and employment by the end of 2023[8]. The application of advanced technologies will be vital to nurse the nascent flames of a digital Edinburgh into a beacon of economic activity.
Scotland’s Connectivity Hub
Scotland is home to some of the fastest-growing technology and financial organisations in the UK.
With three colocation facilities located in Edinburgh, Pulsant offer the most connected data centres in Scotland and north of London, with high density solutions supported by a 100GB national network connecting to the rest of the UK.
Pulsant’s national colocation footprint enables businesses to expand their reach geographically with access to an extensive ecosystem of clients, partners and service providers.
Connected by a private, high-speed network, Pulsant’s data centres deliver ultimate flexibility in cost, scalability and performance, enabling Scottish businesses to deploy infrastructure at the network edge.
[2] See Scotland's Top Tech Startups | 2022 | Beauhurst
[3] See GenAI Solutions Help European AI Market Thrive in an Uncertain Economic Environment, Says IDC
[5] See Data talent and skills in Scotland (sdi.co.uk) citing Skills Development Scotland Sectoral Skills Assessment February 2021
[6] See ai-cities-infographics-9095-sas.pdf
[7]See Report: AI adoption grows 21% YoY among UK orgs (digit.fyi)
[8] See New Economic Report Highlights Mixed Fortunes For Scottish Cities Over Next Two Years (irwinmitchell.com)