AI is the talk of Scotland’s boardrooms, but few firms have a plan in place to maximise its potential, according to a new report from EY and Livingston James.

Polling more than 200 CEOs, non-executive directors, and department heads, the firms’ latest Investigating the Future CEO report shows just 36% of Scottish senior leaders have a formal AI strategy, despite 71% of organisations reporting they regularly discuss their AI plans at board level.

The findings suggest a lack of clarity among Scottish firms about who is responsible for driving forward AI strategy.

Less than half (46%) of businesses said their technology function holds overall accountability for their AI plan, while others place responsibility with operations (16%), finance (12%), commercial teams (6%), or even CEOs themselves (3%).

Surprisingly, micro organisations, those with fewer than ten employees, were most likely to have an AI strategy (59%), compared to just 37% of large organisations, and 33% for midsized organisations.

Added to that, Scotland’s private enterprises are lagging behind the public sector in having an AI roadmap, at 38% versus 44%, evidence that, despite the hype, businesses are being cautious in turning ambition into action as they attempt to contain rapidly escalating AI costs.

“Scottish leaders are clearly energised by the potential of AI, but turning ambition into action now requires a shift from discussion to disciplined execution,” said Cara Heaney, managed services leader at EY Scotland.

“If CEOs establish clear ownership, embed responsible AI practices and support their teams through the change, they won’t just keep pace with competitors – they’ll set the standard for what modern leadership looks like in an AI‑enabled economy.”

However, even though AI is set to dominate the agenda for most firms well into the future, the study found that most Scottish tech leaders don’t believe they are in the running to become the CEO of their organisations.

Only half (50%) of tech execs said they think they could soon lead their business, the joint lowest among senior management, alongside HR heads.

Tech leaders were also the least likely to be involved in succession planning for their firm at 17%, half the rate for heads of finance, with the study finding only 3% of CEOs currently come from a technology background, compared to 35% for operations and 32% for commercial.

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By sidelining tech leaders, Scottish firms could be risking their long‑term competitiveness, according to the report. 

For example, despite making huge investments to keep up with emerging technologies, senior leaders cited fears of slipping behind competitors in the AI race or losing high-performing individuals or teams to more agile rivals.

“Lots of people are talking about AI, but fewer are certain about how they should actually use it in the right way,” said Ali Shaw, director at Livingston James.

“Given that responsibility lies predominantly with other functions, and, worryingly, in some cases with no one, CEOs will need to ensure that they have the right people around them to make the most of the opportunities AI presents. 

“That could mean involving senior tech executives more in areas like succession planning so that future leadership teams have the right level of technological know-how to prepare for the big changes ahead.”